Commercial Lease Renewals

Under the Landlord and Tenant Act 1954 (LTA 1954), subject to certain exceptions, a business tenant has security of tenure which offers two key protections:

  • The tenancy will not terminate automatically after the lease comes to an end. It will continue on the same terms as the contractual tenancy until it is terminated in one of the ways specified in the LTA 1954;
  • The tenant has a statutory right to an entirely new lease that replaces the existing lease (commonly referred to as a lease renewal).

Some leases are not protected by the LTA 1954, for example, if the lease includes a clause to contract out of the security of tenure provisions of the LTA 1954.

boss sitting in office

I am a Partner at Naylor Solicitors, a law firm specialising in property disputes and resolution. I would be delighted to assist with any queries you may have. Please get in touch to arrange a no obligation consultation.

James Naylor
Partner

Who can initiate a commercial lease renewal?

Either the landlord or the tenant can initiate the lease renewal procedure before the end of the contractual term or after the end of the contractual term if the tenancy is continuing under the LTA 1954.

The landlord can initiate the lease renewal procedure by serving a section 25 notice. The section 25 notice will end the tenancy between six and 12 months from the date of the notice and will indicate whether:

  • The landlord proposes a new tenancy; or
  • The landlord is opposed to a lease renewal.

The tenant can request a new business tenancy by serving a section 26 request. Service of a section 26 request will not oblige the tenant to take the lease. It is simply the trigger to initiate the renewal process. 

The LTA 1954 sets out strict format requirements and time limits. If they are not complied with, the right to renew the lease (or oppose its renewal) may be lost. We can initiate the lease renewal process on behalf of a landlord or tenant by preparing and serving the notice or request. 

When can a landlord refuse?

The landlord must grant a lease renewal unless there is a specific legal reason to oppose the renewal.

The landlord must notify the tenant of its opposition by serving either:

  • a section 25 notice if the landlord is terminating the lease; or
  • a counter-notice to a tenant’s section 26 request.

In both cases, the landlord must specify the grounds of opposition under section 30(1) of the LTA 1954. Examples of these grounds include:

  • The tenant is in persistent rent arrears;
  • The tenant has breached repair or maintenance obligations;
  • The landlord intends to demolish or reconstruct the premises;
  • the landlord intends to occupy the premises for the purpose of its own business.

We can act for landlords wishing to oppose a lease renewal by preparing and serving the appropriate notice or counter-notice on the tenant.

Can a tenant challenge a landlord’s opposition to lease renewal?

Once a landlord has expressed its opposition in a section 25 notice, or in a counter-notice to a tenant’s section 26 request, either the landlord or the tenant can apply to court:

  • The tenant can apply to court for a new tenancy and challenge the landlord’s grounds for opposition;
  • The landlord can apply to court for an order terminating the tenancy without renewal on any of the grounds for opposition contained in section 30 of the LTA 1954.

If the landlord fails to establish its grounds, the court will order a new tenancy.

If the court agrees that the landlord has established any of the grounds for opposition, the court will make an order terminating the current tenancy without the grant of a new tenancy.

We can act on behalf of a landlord opposing a lease renewal or a tenant challenging an opposition.

How are the terms of the new lease agreed?

The majority of the lease, if not all of it, will usually be negotiated by the landlord and the tenant without resorting to court. However, if the parties cannot agree, the landlord or the tenant can apply to court to determine the new terms of the lease.

Once the court has made an order on the new lease terms, a tenant will be bound to take the new lease unless:

  • the court revokes the order on the tenant’s application; or
  • the landlord and tenant agree in writing not to act upon the order for a new tenancy made by the court.

We can act on behalf of a landlord or a tenant in an unopposed lease renewal, by assisting negotiations and applying for a court order, if appropriate.

We’re with you, every step of the way.

We’re here to guide you through the intricacies of litigation, resolve disputes efficiently, and help you achieve your outcome.

Testimonials

Our team is composed of dedicated and accomplished legal professionals, each bringing their unique expertise to the table.

Violeta Korkucyte
Violeta Korkucyte
21/05/2024
I am very happy with the service provided by Dominika Libova who helped me out with both my housing and allotment issues. Dominika was very professional, knowledgeable and understanding. I am grateful for all support and understanding received. I highly recommend Dominika and I will certainly continue using Naylor Solicitors services, should again there will be any need. Thank you so much! Kind regards, Violeta Korkucyte
Xuan Xing
Xuan Xing
06/05/2024
I used Naylor as my solicitor in my possesion claim case. It was very complicated due to a rent-to-rent and defaulting agent case with changing solicitors in the past. Jenny and Dominika provided top-notch services along the way and helped me finally regained the property. They gave legal advices truly in client's interest and explained things in details. I would highly recommend you using them esp. when you face a complicated case.
shaz
shaz
15/04/2024
Hi, My landlord posted an arrears repayment request letter (for my commercial property) to my old residential address where I haven't lived for over 20 years. To make things worse, some of my estranged family out of spite 'sat on the letter and never told me'. When my sick father found out he told me but by that time it was too late and my landlord had then tried 'to dig up a old expired lease clause' to evict me instead. I contacted the landlord and instructed Naylors to help me, as I have used them previously without any problems. I had an excellent service and outcome before and this time felt I was in very safe hands. However my landlord served me a 'forfeiture of lease and claimed repossession. Distraught Naylors saved the day and I am delighted, relieved and very grateful to say the landlord has given my keys back to me today, (within 48hrs of Naylors contacting them on my behalf) and I am back in my shop. Thank you so so much James, Jonathan, Jasper, Gurcharan and the whole team at Naylors, you guys are fantastic! keep up the amazing work. best wishes shabana x
Relinda Howard
Relinda Howard
04/04/2024
I take this opportunity of thanking Dominika for her expertise and professionalism. She certainly made my experience of this situation more pleasant . She appears to be a person of strength and determination. When it is time to be firm she can be. Thanks for her perseverance in completing what she started. Relinda.
Mark Genney
Mark Genney
22/03/2024
I have to say Naylor went the extra mile, my case must have lasted 5 years or so. I'm very happy with the amount of professionalism and talent that Naylor brought to this.
BB Roy
BB Roy
12/03/2024
This specialist, yet unassuming Property Law firm came to my rescue by evicting a tenant in my property who was illegally subletting. At the outset, the principal of the firm - James Naylor set out a very clear forthright approach to get the tenants out by a given date. Then it was all up to a very high impact Solicitor Nida Khan to execute that plan. Nida was diligent and persistent in her manner with the tenants and left them with little scope to manoeuvre other than to surrender the tenancy by the specified date or to face imminent eviction by court orders. Through out the two week's process - Nida kept me informed, was easy to communicate with and was always reassuring. I am very grateful to Naylor's LLP for their professional service and happy to recommend Nida and her firm as outstanding property law practitioners.
Nurliah Fisher
Nurliah Fisher
21/02/2024
I would like to thanks to all the staff at Naylor Solicitors. They are all very helpful and the most important is for me that’s they are very honest. Wishing them all the best and success with their team work and especially to Dominika, Many thanks for your hard work. Best wishes Nurliah Fisher
Mustafa Kalaycı
Mustafa Kalaycı
21/01/2024
The most honest, hardworking, and fully professional law firm I have encountered or worked with. Despite speaking different languages, they effectively understand you through their interpreters, find the best advisors to assist you, and acquire the necessary information. They create a friendly, family-like atmosphere with a straightforward approach, particularly in litigation expertise. My gratitude goes to all the staff involved, especially James Naylor and Jenny Cheung, for their dedication. Thanks for everything. Mustafa KALAYCI
Pauline
Pauline
12/09/2023
I used Naylor Solicitors to help us purchase our freehold. It wasn't as straightforward as we'd hoped as the previous freeholder and his solicitors were difficult to deal with (not responding to calls or emails etc,) which delayed things. At one point the freeholder threatened to pull out of the sale despite previously agreeing. Our solicitor Adam was swift in his response, reminding the other side that we had a verbal agreement and that they were risking us taking legal action in that regard. He was then able to make sure the sale went through as agreed. I highly recommend Naylor Solicitors.
Ray Allen
Ray Allen
26/04/2023
We have used their services twice and both times we found them to be efficient and responsive. Kept us well informed of all developments throughout the process.