Renewing and ending business leases

The renewing or ending of a business lease is important for both the landlord and the tenant. Where there are agreement needs to be reached or a dispute arises, it is vital to seek legal advice.

The Landlord and Tenant Act 1954 gives business tenants the right to renew a tenancy when it comes to an end. There are a number of common issues that arise.

• If both the landlord and tenant agree that there should be a new tenancy, they will need to agree the terms. If there is no agreement, either party might seek a resolution by serving a Notice to court.
• Landlords can apply to the court for lease renewal if the tenant is happy to remain, where there are changes to be made to the lease such as an increase in rent.
• Landlords can oppose the renewal of the tenancy. They can also apply to the court to end the tenancy or oppose the renewal.

Correct procedures must be followed in order to appease the Court or to avoid costly procedures.

Timing is critical and we advise all clients to begin the planning process at least 12 months before the tenancy end date. Missing a deadline can mean missing the opportunity to protect yourself. 

• Problems with your landlord? A guide(pdf, 100Kb)
• Problems with your tenant? A guide(pdf, 162Kb)