Lease Renewal negotiations are often a more delicate process than the rent review negotiation as the tenant has no obligation to stay. The door is opened for both parties to review both the rent and the lease terms, a major distinction between a rent review and a lease expiry/lease end.
Not all tenants under a commercial tenancy agreement have the right to a lease renewal when the tenancy expires. In those cases an earlier start to rent negotiations by the tenant is vital, to allow for the terms of the new tenancy agreement to be agreed before the lease expiry date. If the decision is made to vacate then negotiating terms on new premises and, where appropriate dilapidations, will need to be completed.
Where the business tenant does have automatic rights to renew lease agreement under the provisions of the Landlord & Tenant Act 1954 then strict timetables need to be understood and adhered to, a lease 'protected' under the Act can only be brought to an end by notice if the tenant remains in occupation and is intending on renewing a lease. The advice provided by the lease consultant surveyor is a key component of this process.
Our advice focuses around the strategic time for serving a Section 25 Notice (for the landlord) or Section 26 Notice (for the tenant) to bring the protected lease to an end, according to whether rental levels are anticipated to be rising or falling at the lease expiry. Our lease consultancy team will also advise on the timing of any counter notices that need to be served prior to entering into the negotiating process, as part of that lease renewal strategy.