A commercial lease, in simple terms, is a contract between a landlord and a tenant for a fixed period of time.  

When the contractual period ends, the lease continues under Section 24 of Part II of the Landlord and Tenant Act 1954.  However, this is not the case where the security of tenure provisions have been excluded.

Where the security of tenure provisions have not been excluded, the lease will continue under Section 24 until either party serves their notice on the other bringing the lease to an end.

This notice must provide at least six months notice to the other party but can provide for up to twelve months.

It is therefore imperative that if a Notice is to be served, the correct timescales are observed.

The legislation governing lease renewals is quite strict although it has been slightly relaxed in recent years.

The rent payable under a new lease will usually be determined by rental levels in the area but it is the responsibility of the surveyor to take into account the peculiarities of the lease which often has an impact on the rent and adjustments need to be made accordingly.

We have extensive experience in dealing with both rent reviews and lease renewals and represent both landlords and tenants in these matters.

For further information or to discuss a particular case, please do not hesitate to contact us.