Landlord and Tenant Act Renewals Milton Keynes solicitors specialising in lease renewals

Under security of tenure, the tenant does not have to leave at the end of the period of the original lease and can request a new lease. If the landlord and tenant cannot agree upon the terms of the new lease between themselves, the tenant can ask the court to grant a new lease.

There are limited circumstances where a renewal lease can be successfully opposed by a landlord, for example if there are fault grounds such as persistent late payment of rent, or no-fault grounds, such as the landlord’s wish to redevelop the property and/or resume occupation. In the case of a no-fault ground, the tenant may be entitled to compensation, therefore it is essential to consider, at the time of entering into negotiations, the landlord’s future plans.

At Heald Solicitors in Milton Keynes, we can advise you on your rights and responsibilities whether you are a landlord or a tenant and negotiate and draw up a new lease on your behalf. Our commercial property team have in-depth experience of Landlord and Tenant Act law and can advise you whether you are a landlord or a tenant.

There are strict procedures for lease renewals and the area is very technical. We understand these procedures and can guide you through the process including the issue of the correct statutory notices.

Tenant’s request to renew the lease under section 26 of the Landlord and Tenant Act

When the tenant wishes to request a new tenancy, they need to serve a notice on the landlord under section 26 of the Landlord and Tenant Act. The notice should be served between six and twelve months before the end of the lease term and should include the terms of the proposed new lease. This triggers the lease renewal process.

Landlord’s section 25 notice under the Landlord and Tenant Act

At the end of a tenancy the landlord can serve a notice under section 25 of the Landlord and Tenant Act. The landlord can say either that it does not oppose a renewal of the lease or can oppose a renewal and state why.

Tenant’s request to renew the lease under section 26 of the Landlord and Tenant Act

When the tenant wishes to request a new tenancy, they need to serve a notice on the landlord under section 26 of the Landlord and Tenant Act. The notice should be served between six and twelve months before the end of the lease term and should include the terms of the proposed new lease. This triggers the lease renewal process.

Agreeing a new commercial lease

The landlord may oppose the renewal on limited grounds, for example, repeated failure to pay the rent or where they wish to develop the property. Alternatively, the landlord may wish to amend the proposed lease.

Generally, the new lease will contain similar terms to the original lease. If the court is asked to intervene to impose terms, it will look at the current open market rent for the property. It will also decide on the length of the new lease, up to a maximum of 15 years, and the terms, for example, whether any break clause will be included.