Lease renewals


A tenant of a business lease has a right to a lease renewal on expiry of the contractual term if certain criteria are met and if the lease has not been contracted out of the Landlord and Tenant Act 1954.

The rights enjoyed by a tenant under an existing lease will be included within the new lease unless otherwise agreed between the landlord and tenant or if no agreement can be reached, the terms of the new lease will be decided by the court.

For procedures where either the landlord or the tenant seeks to terminate the business lease please click here.

Our specialist Dispute Resolution team have considerable expertise in representing both landlords and tenants in dealing with the lease renewal process.

We offer a bespoke service based upon the following three stage lease renewal process:

Stage 1: Service of Notice

  • Service of a section 25 notice on behalf of a landlord on a tenant to initiate renewal which may oppose or confirm the lease renewal.
  • Service of a section 26 notice on behalf of a tenant on a landlord to initiate renewal.
  • Counter-notice on behalf of a landlord on receipt of a section 26 notice from a tenant.
  • Compliance with prescribed timescales and statutory requirements.

Stage 2: Lease Renewal Negotiations

  • Engaging in lease renewal negotiations directly or liaising with a property surveyor to ensure strict adherence to prescribed timescales.
  • Referral to our Real Estate team for drafting and execution of new lease, if necessary.

Stage 3: Application to Court

  • If the parties cannot agree on the terms of the new lease, application to the court for grant of a new lease.

Note for Tenants

It is particularly important to deal with the lease renewal as soon as a notice has been served. If the tenant fails to adhere to the strict statutory requirements and timescales, there is a risk of losing the right to a lease renewal and right to remain in occupation of the premises.

Note for Landlords

If a lease has expired and the tenant is simply “holding over”, a landlord may consider it important to commence the lease renewal process for a number of reasons. By formalising a new lease with an existing tenant, the landlord will have security of rental income for a further fixed term of years and may be able to negotiate an increase of market value rent. However, a landlord must be wary when deciding whether to engage in the statutory procedures and consider the imposition of strict timescales.

It is recommended to seek independent legal advice when dealing with business lease renewals. For more information about our expertise and how we could help you, please contact us.