The Landlord and Tenant Act 1954 provides stability for business tenants and means that they have the right to renew a lease automatically under certain conditions. A commercial lease solicitor in London, like Saracens Solicitors, can help navigate this situation you whether you are a landlord or a tenant.
Establishing right to renew
A commercial lease solicitor in London will be able to tell you if you or your tenant has the right to renew.
Generally, business tenants qualify but there are a few notable exceptions, such as when the original lease was for 6 months or less and the tenant’s occupation has not extended past 12 months. For a full list of exclusions, it’s best to get in touch with a legal professional.
Refusal to renew
If you are a landlord and you do not wish to renew the lease, you may have grounds for refusal based on certain criteria. These include:
- breach of tenant’s obligations;
- you find the tenant alternative accommodation;
- you wish to consolidate a property that is divided into separate sections;
- if you want to demolish or rebuild the property, unless an arrangement is made with the tenant allowing you to carry out the work while they are in residence;
- if you decide you wish to live or work in the premises yourself.
If you think you may wish to end a tenancy at the end of the lease term, it is important that you take advice as soon as possible to ensure that you qualify for the grounds which you will be relying on. Talk to Saracens Solicitors. We are a commercial lease solicitor in London and can advise you on your options and take any action that might be required. Specific actions need to be taken depending on your circumstances and, if they are not in place for the end of the lease term, the lease will continue until appropriate action is taken.
You can build a clause into the original lease that excludes the automatic renewal rights provided by the Landlord and Tenant Act 1954 if you consult a solicitor before you begin.
Ending the tenancy
The tenancy may be ended under one of the circumstances noted above or by mutual agreement between the landlord and tenant. This is known as ‘contracting out’ and it is where the tenant agrees to surrender the lease.