Property Disputes overview
Business Lease Renewal under the Landlord & Tenant Act
The current position with regard to termination of business tenancies depends on a number of factors. Firstly whether the business tenancy is excluded from the Landlord & Tenant Act protection provisions or not and secondly whether the term specified in the original written tenancy has expired. If there is no written tenancy different rules will apply. Please contact us for further information.
1. Tenancy excluded from the Landlord & Tenant Act 1954
Provided that the procedure has been followed correctly the lease automatically terminates on the date specified in it. There is no need for the landlord or tenant to serve any notices. The tenant becomes a trespasser following expiry of the lease if he does not move out.
2. Leases that are included within the Landlord & Tenant Act
Here the tenant is entitled to have a new lease granted to him unless the landlord can prove certain grounds.
The tenant is entitled to vacate the property on or before the expiry date (remaining liable up to the expiry date if the tenant vacates before) and the lease will terminate.
The landlord can serve a notice on the tenant in a prescribed form which must terminate the tenancy no earlier than its expiry date and must give at least six months notice. The notice cannot be served more than twelve months before the expiry date but can be served any time up to and beyond the expiry date as long as at least six months notice is given. The notice will either consent to the new lease and give proposed terms or set out the grounds which the landlord says entitle him not to grant a new lease. If the tenant does not want to remain in the premises, his right to leave the premises on or before the expiry date. If the tenant does wish to remain he can negotiate with the landlord as to the terms of the new lease but court proceedings may be necessary if agreement cannot be reached.
If the tenant remains beyond the expiry date of the lease, he holds over under the terms of the Landlord & Tenant Act 1954. If no notices are served by the landlord the tenant must give three months notice (assuming that he pays rent on a quarterly basis) to leave the premises. The tenant can also serve his own notice, if the landlord has not served a notice, requesting the landlord to grant him a new lease.
