When it comes to renewing or ending your commercial property lease, it is generally a straightforward process. However, it is extremely important that, as both a tenant and a landlord, you understand the legal procedures which are involved so that your and the other party understand your rights and are both on the same page.
At Prideview Properties, we are leading commercial property consultants in London, so you could say that we are quite experienced when it comes to dealing with commercial property leases.
We’ve put together this short guide which will inform you of the procedures of both renewing and terminating a commercial lease, and what rights you have as a tenant or a landlord..
Renewing a Commercial Lease
According to the Landlord and Tenant Act 1954, the occupants of the commercial premises have the opportunity to stay in the building and renew their lease when the time comes to do so. This is covered by the law and doesn’t apply to specific business sectors; no matter what your business provides, you will have this right.
However, there are some exceptions to this law. Tenants who have sub-let the property and aren’t residing or operating in the premises themselves do not have the right to automatically renew their lease, as well as tenants who have fixed term tenancies which are 6 months or less.
It is also worth keeping in mind that there is the chance that a landlord can refuse to renew a tenancy. If you have been found to breach the tenancy agreement that was signed by both parties, fail to pay rent on time or not at all, your landlord will have the right to refuse your renewal of your lease.
Ending a Business Lease
There is a lot of different ways that you can end your commercial tenancy and you do have legal rights to terminate this agreement early if you require to. Your landlord may also let you end a tenancy early if you can find someone else to take up your lease.
Again, a landlord will have the power to terminate your contract early if you are found to have breached the terms of your tenancy agreement.
If you are looking to end your lease early, we highly recommend seeking professional, legal advice so that you know exactly what your rights as a tenant or a landlord are, as each tenancy agreement will differ.
We hope that this has helped to advise both landlords and tenants on the process of renewing and ending a commercial property lease. We think it is essential that all parties involved fully understand what these leases entail, and what rights each individual has.
If you are interested in finding out more about investing in a commercial property, don’t hesitate to get in contact with our expert team here at Prideview Properties. Call us today on 0208 863 8680 for some of the best property advice available.
