To help you get the best possible result for renewing your lease on a commercial property, it is vital to seek the advice of a professional and knowledgeable solicitor early on in the process. Many lease renewals are governed by The Landlord and Tenant Act 1954 which can be confusing without a sound working knowledge of its complexities.
Renewing a lease:
If your tenants serve you with a section 26 notice to renew the lease, it could save you a great deal of expense and time finding new tenants. It is vital to keep a good relationship with your tenants so in these situations it is often best to agree to the renewal of the lease. However, you should be aware of your rights, and how best to protect them during the process.
Can I negotiate the price when renewing a commercial lease?
It is normal to negotiate throughout the process of renewing a commercial lease. The tenant may request a rent reduction or for the implementation of clauses that were not in the original lease. This is where it is vital to get the advice of a commercial property solicitor to handle these negotiations on your behalf, and to advise you of your rights.
Finding new tenants:
If you decide that you want to find new tenants, JMR Solicitors can help to draw up a section 25 notice to serve on your current tenants. A section 25 notice will terminate the lease but can a sometimes cause dispute, which is why it is best to have a solicitor draw up the notice and make sure that everything is done within the law.
Gaining possession of a commercial property:
As a landlord, you have the right to gain possession of your commercial property. The grounds for which you may apply for possession are as follows:
- Breach of repairing covenant
- Persistent delay in paying rent
- Breaches of other obligations
- Availability of alternative accommodation
- Sub-tenant – possession required for letting or disposing of whole of property
- Landlord intends to demolish or reconstruct
- Landlord intends to occupy the premises himself
There is a strict procedure for serving a notice to quite using a section 25 form, as it is set out in The Landlord and Tenant Act 1954.
