By Imogen Fleur, Solicitor
Are you a tenant occupying commercial premises? If your lease is coming to an end, you may wish to seek a renewal lease. Below are five key points you should consider:
1. Is your lease protected or unprotected
If your lease is protected, you benefit from the statutory right to renew your lease, and to remain in the premises beyond the lease end date. You can serve a statutory notice on your landlord requesting a renewal. Your landlord has limited legal grounds to oppose your renewal request.
If it’s unprotected, you do not benefit from these rights and have no right to stay in the premises beyond the end date of the lease.
2. Negotiating the renewal terms
With a protected lease, you have the right to a renewal lease at a market rent on similar terms as your existing lease. You and your landlord are not permitted to demand significant changes to the terms of the renewal lease.
These rights do not apply on the renewal if your existing lease is unprotected.
3. Duration
Landlords often favour long-term leases, as this provides them with greater security of occupancy. Consider whether the term is suitable to your business plan and needs.
4. Break clause
If you are being offered a longer lease, you may wish to negotiate a break clause. This gives you the option to end the lease early. Break clauses are often subject to conditions, therefore you should carefully consider whether the conditions are achievable.
5. Rents
Check how the rent you are being offered compares with the current property market conditions, as this may have changed significantly since you first occupied the property.
If you wish to discuss this further, please do not hesitate to contact Imogen Fleur on email: ixf@cooperburnett.com or tel: 01892 515022.
This blog is not intended as legal advice that can be relied upon and CooperBurnett LLP does not accept any responsibility for the accuracy of its contents.
This blog was originally published in the Tunbridge Wells Business Magazine: https://twbusinessmagazine.com/
