Renewing or Ending a Business Tenancy 


Because of The Landlord and Tenant Act 1954 business tenants, under certain conditions) have the right to renew a lease as it comes to an end. Before the act was introduced the landlords held all the cards when it came to negotiating the renewal. Luckily this is not the case today and it is generally much easier for commercial tenants to extend their lease. Of course, there are always exceptions, and we will take a look at those later. 


Right to Renew


Kaiser Solicitors will be able to examine the lease agreement and inform either the tenant or the landlord whether they have the right to renew. Not all commercial leaseholders have the right to renew. It may stipulate in the lease that renewal is prohibited.

Exclusions include:

1) The tenant breaches the lease

2) The landlord wishes to demolish the property

3) The landlord wishes to move their business into the property


For a full list of exclusions, you should contact Kaiser Solicitors. 


Renewing the Lease

If you intend to renew the lease you should notify your landlord at least a year before the lease is due to end. This will give the landlord ample opportunity to think about what they intend to do with the property and give you (the tenant) plenty of time to make alternative arrangements. 

This notification must be formally made using the Section 26 Notice on the landlord requesting a new tenancy. 


Ending a Business Tenancy

A landlord can issue a commercial tenant with a Section 25 Notice that informs the tenant that they do not wish to proceed with a renewal. This can be done if there was a no renewal clause written into the original contract, or if one of the exclusions above are enacted. 


Break Clause

A break clause is an official date in the lease agreement, which has been signed by both parties, where the lease can be broken on a given and agreed on date. The tenant can exercise the break clause usually by giving a minimum of 6 months written notice to the landlord before the break date.


For further information regarding renewing or ending a business tenancy contact Kaiser Solicitors.