If you have been leasing a commercial property for your business and your business is thriving it is likely that you will want to stay there. When commercial leases end, most tenants will have the right to stay in those premises and renew their lease, which is called a security of tenure.
There are some reasons why this right may not be exercised though and the most common of these reasons is that this right was removed when the lease was drawn up. If this is the case, the only option to be able to stay in the premises will be to speak to your landlord and propose a new lease.
Some of the other reasons why an automatic lease renewal may not take place are that they do not apply to people who are business farm tenants, mining tenants and those on a short term lease of six months or less.
Other Ways Your Lease May End
Image by Dave Lam
Even if your lease did contain security of tenure and allow to renew your commercial property lease, you may give up these rights if you break the terms of your lease agreement. Failing to pay your rent, or if you break any other aspect of your agreement may mean that you waive your right to renew.
If the landlord can show at the end of your lease that they now require the property for their own use or that they want to redevelop it, you will not be able to renew the lease.
Apart from the restrictions on lease renewal listed above, you should have the right to renew and extend your commercial property lease. There are rules which need to be followed though and you have to request a new lease at least six months before your existing lease will expire.
Opposition To Renewal Request
Although you have the right to renew your lease, your landlord may decide that they want to oppose your renewal request. They must also follow rules and time periods to be able to do this though, and their opposition will fail if they do not follow protocol. You may decide that you want to challenge this, but this could mean a long, drawn out and costly dispute for both you and your landlord.
To make sure that you understand your legal position properly, you should speak to a commercial property solicitor to review your lease and do this as early as you possibly can to avoid missing any important deadlines. This will mean that you can secure the future of your business at your current property.
If you would like more information about this article or you would like to speak to us our commercial property legal services, you can call us on 0800 142 2775 or reply to this email and we’d be delighted to help you (initial telephone discussion is free of charge).