Commercial Lease Renewal Disputes

What are commercial lease renewal disputes?

Renewal procedures for a commercial lease under the 1954 Act differ depending on who initiates the renewal. If terms cannot be agreed by the end of the notice period, either party can apply to the Court to determine the terms of the new lease.

If the tenant requests a new lease and it is not granted based solely on no fault grounds, compensation is payable to the tenant. Further, a landlord can seek possession of the lease at the end of the term relying upon grounds including no fault and fault grounds. As above, no fault grounds result in compensation being payable by the landlord to the tenant.

Specialist legal advice

A commercial tenant may wish to renew its lease upon expiry of the lease term. Consideration should however be given to the commerciality of serving notice of renewal in light of the rental market and lettability of the property.

Our Property Litigation solicitors are best placed to guide you through not only the legal complexities of renewals but also the pertinent considerations in doing so.

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Commercial Lease Renewal Dispute FAQs

How does a landlord renew a commercial lease?

A landlord can serve a s.25 notice giving the tenant 6 – 12 months notice. Terms can then be negotiated and, if not agreed, proceedings can be issued by either party.

What happens when a lease expires on a commercial property?

If a lease expires on a commercial property and the tenant remains in occupation, a new tenancy may arise by implication. Specialist advice should be sought if you find yourself occupying a property post-expiry of your lease.

Do I need a solicitor to renew a commercial lease?

We recommend that specialist advice is sought in respect of lease renewals as, even if terms are agreed between the parties, you may be at risk of losing your automatic right to renewal if you do not complete it within the statutory timescale.

Can you extend a lease on commercial property?

You can ‘extend’ a lease on a commercial property by renewing the lease.

What happens if a commercial property lease is not renewed?

If a commercial property lease is not renewed and you remain in occupation an implied tenancy will be created.

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Our specialist team of solicitors take a personal approach to everything we do to give you peace of mind knowing your case is in the hands of the experts.

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About Ellis Jones

Our specialist team of solicitors take a personal approach to everything we do to give you peace of mind knowing your case is in the hands of the experts.

Learn More