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ARTICLE · 11 AUGUST 2023

Extending Your Commercial Lease

Applying to court will, of course, increase costs and lengthen the time it takes to complete the renewal lease, so it is preferable to agree on the terms between the parties if possible.

United KingdomReal Estate and Construction

References are often made to 'extending' a commercial lease.

However, this could apply to two different circumstances.

The first is when the lease will end soon, and the landlord and tenant want to renew the lease.

This is known as a renewal lease.

The second is when the lease still has plenty of time to run, but the tenant wants to extend the time for which they can occupy the commercial property.

Renewing the lease

Tenants of business premises usually have a right to apply for a new lease when their existing lease comes to an end unless the lease has been contracted out of the provisions in the Landlord and Tenant Act 1954.

Assuming that the lease has yet to be contracted out, the landlord and tenant will need to comply with the statutory procedure for renewing the lease, so it is essential that they both seek advice from a solicitor.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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