If you do have a commercial lease, it is vital to know your rights in extending your lease and terminating it if necessary.
Part II of the Landlord and Tenant Act 1954 (LTA) provides commercial leaseholders with ‘security of tenure’. This means your commercial lease will not automatically end upon expiry of the contractual term; and your lease will only come to an end if the termination provisions within Part II of the LTA 1954 have been followed. If the contractual term of your lease expires, you will be able to renew your lease on substantially the same terms as specified in the original (save for rent), by way of a statutory renewal.
It should be noted however, that security of tenure can be removed from a lease through a procedure known as ‘contracting out’, and therefore not all leases have this renewal ability.
The process of renewal can be triggered in the following ways:
Firstly, your landlord may serve a Section 25 Notice upon you.