T +44 (0)20 8546 7691
E p.kiddle@bentleypugh.com

Regulated by the Royal Institution
of Chartered Surveyors (RICS)

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Commercial Lease Renewals

We advise landlords and tenants on the procedure to follow in the run up to the expiry date of commercial leases.

The security of tenure preparations of the 1954 Landlord and Tenant Act mean that the tenants of most business premises have an automatic right to a new lease following the determination of the previous lease – in cases where the security of tenure provisions apply. The lease term may end but the tenancy continues.

A landlord may oppose a tenant’s entitlement to a new lease if he can prove one or more of several grounds prescribed in the Act. However, the majority of business leases are renewed without such opposition.

To determine a lease the landlord must serve a notice in a prescribed form expiring on (or after) the termination date. This notice must indicate whether the landlord will or will not object to an application to the Court for a new lease and if there is an objection he must state the grounds.

The tenant has a fixed period in which to reply. There is then a period during which the parties can attempt to agree the terms of a new lease but failure will mean that either party can apply to the Court to set the terms – including rent – of the new lease.

Similarly a tenant can serve notice requesting a new lease.

In the run up to the lease expiry date landlords also have to consider whether to serve a terminal Schedule of Dilapidations and conversely, on receipt of a dilapidations claim, tenants need to take professional advice on how to react and in particular which elements of any claim are justified.

We have an in depth knowledge and extensive experience of all these matters and approach every negotiation with the enthusiasm and determination needed to secure the best possible settlement for our client.