How a commercial lease renewal is dealt with depends on whether the lease is inside or outside the protection of The Landlord & Tenant Act 1954 (as amended).
If the lease is within ‘the Act’ then there are strict procedures and notices to follow. Getting the right tactical advice is paramount. If a lease renewal cannot be agreed with the landlord or the tenant then the Court (in most cases) will decide whether a new lease should be offered and on what terms.
A lease that is granted outside ‘the Act’ is deemed to end on the contractual date as stated within the lease and a tenant has generally no legal rights to stay in occupation beyond this date. Any negotiations to renew the lease are therefore dependent on the willingness of both parties to cooperate.
It is essential that both tenants and landlords look at their own position well in advance of the renewal date in order to consider their options. Time is of the essence. Our advice is to contact your surveyor a good 18 months before this date to give yourself plenty of time to look at your options.