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.
Secondly, you could start the process by serving the landlord with a Section 26 Notice.
If you receive a Section 25 Notice or wish to serve a Section 26 Notice, we would strongly recommend that you obtain independent legal advice so that you are aware of your rights going forward. Such notices must be drafted correctly and must be served within the correct strict time limits. Receiving such legal advice could therefore save you both time and costs in the long term and also preserve your relationship with the other party.
If you do wish to seek advice in relation to renewing your commercial lease, please contact Lorraine Lancaster on 01702 338338.