Business tenancies work differently from private rental tenancies, and it is important to understand the differences. One of the most important aspects of a commercial lease for the tenant is being able to renew it. As with homes, the location of a business can either make or break it. For example, a shop selling souvenirs of London is going to do much more business in somewhere like Leicester Square than Canary Wharf.
Whatever the business, most tenancies come with automatic rights to renew it when the lease ends. However, this can be waived so it’s important to use a commercial lease solicitor in London. Businesses in central London may want to use the services of Saracens Solicitors, which is a West End firm based in Marble Arch.
Circumstances where renewal is not automatic
There are some circumstances where renewal is not automatic, as the commercial lease solicitor in London will explain. These include:
- Being a service tenant employed by the landlord;
- Being on a fixed-term tenancy of six months or less.
Being refused renewal
Landlords can legally refuse to renew their tenants’ lease if the tenant has breached the terms of the lease, perhaps by being in arrears with the rent. Also, if the landlord wants to redevelop the property or use it for their own business.
When landlords want to end a lease
The landlord must serve a legal document called a notice of termination on the tenant. The tenant can use a commercial lease solicitor in London to help them make an application to the court to renew their tenancy. The time limit on this is of crucial importance. If the tenant doesn’t get their application in on time, they can lose their right to renew the tenancy.
Waiving the right to automatic renewal
This right is protected by the 1954 Landlord and Tenant Act. Tenants who think they will want an automatic renewal of their lease must ask their commercial lease solicitor in London to make sure this is not waived in the lease agreement.
Terminating a lease
The 1954 Act also deals with the termination of leases, either by the tenant or the landlord.