HomeCommercial PropertyContinuation of the Lease

Continuation of the Lease

Business Leases are protected by statute, unless the statutory protection is excluded. The statutory protection can only be excluded in certain circumstances and then only with the consent of both parties, and after the required notice and declaration procedure is satisfied.

The protection afforded by the legislation has two significant effects:

  1. The Lease continues, following the expiry of the contractual term, until the Lease is ended in accordance with statutory procedure.  The legislation requires either the Landlord and/or Tenant to serve a termination notice on the other to end the Lease;
  2. The Tenant is afforded an automatic right to a renewal Lease, unless the Landlord can substantiate one of the specified ‘grounds’ for refusing to grant the renewal Lease.  Those grounds do provide for the Tenant to be given compensation in such circumstances, except where the ground relied upon is one of those relating to the Tenant’s default.

For the Tenant to retain the Statutory protection she/he will need to comply with the statutory requirements, including making an application to the Court for a new Lease within a prescribed timetable, following the service of the Landlord’s termination notice.

A potential Tenant who is considering foregoing the statutory protection should consider the implications.  These may include:-

  1. the loss of the goodwill at the Property; and/or
  2. the Landlord alternatively only be willing to grant a new Lease at a much higher rent.  The rent may be higher as a consequence of the Landlord rentalising the goodwill that the Tenant may have built up at the Property or any improvements that the Tenant may have carried out or simply because the Landlord can hold the Tenant to ransome.
 

Testimonials

DW Solicitors were recommended to me earlier this year when I needed some legal advice. I have tosay that the way they handled everything was first class...

Read more

Mr David Ward and his practice have represented our family on numerous occasions over the past 10 years. We have always found David to be a conscientious, hardworking...

Read more

DW solicitors have been a breath of fresh air as far as solictors are concerned.  They have always given me an honest opinion of the situation minus all the waffle, I have also...

Read more

DW solicitors and staff have been a great help and comfort to me when i needed some one i could trust to listen and give me good advice, i would also say they did more...

Read more

I was introduced to David and Maria at DW about 10 years ago and have developed a great relationship. It is important to me to work with a professional solicitor who is...

Read more

Quick Contact

 
Enter 84273

Family Matters

Family MattersWe deal with all aspects of Family Law matters from childcare through to divorce and separation including finances.

Commercial

Commercial ServicesDW Solicitors has a wealth of experience of giving clear concise advice on all types of business matters, including share sales and purchases.

Probate

Wills & ProbateWe deal with all aspects of Probate, from very small estates to very large estates. The practice has been involved in a number of contested probate matters in the High Court.