Lease renewal meaning

To bring a business tenancy to an end on the contractual expiry date or at any point thereafter, a tenant may rely on a notice given under section 27 of the Landlord and Tenant Act 1954 (LTA 1954). This Checklist sets out the circumstances and procedure for serving such a notice. For wider guidance on ending LTA 1954 tenancies, refer to Practice Note: LTA 1954 business lease renewal—termination. It outlines timing and the method of service in clear terms. Is the tenancy for a fixed term? A section 27 notice is available only where the tenancy is for a fixed term. It is not available for periodic tenancies. Nevertheless, a tenant may end a periodic tenancy by giving a common law notice to quit (see Practice Note: LTA 1954 business lease renewal—termination under the heading Termination of LTA 1954 tenancies). Have any other notices been served? Once a tenant has served a section 26 request, they cannot then serve a section 27 notice...

This Checklist highlights the matters a tenant should consider before issuing a section 26 request under the Landlord and Tenant Act 1954 (LTA 1954) to seek a new tenancy, whether during the fixed term or while the statutory continuation tenancy subsists. It addresses the tenant’s proposals, the intended start date of the new tenancy, and the identification of the competent landlord. For further guidance, see Practice Note: LTA 1954 business lease renewal—termination. What is the nature of the tenancy? A section 26 request is only valid in relation to the following: a tenancy for a term of years certain exceeding one year, whether or not carried on under LTA 1954, s 24; or a tenancy granted for a term of years certain, and then continuing from year to year Therefore, a section 26 request cannot be served if either of the following apply: the tenancy is a periodic tenancy, other than a yearly periodic tenancy that follows a...

This is a checklist for service of a section 25 notice by a landlord under the Landlord and Tenant Act 1954 (LTA 1954) terminating a tenancy. Check that the proper form has been used, and that it contains the necessary warning notices addressed to tenants. Distinct versions of the section 25 notice are required depending on the landlord’s position: landlords who are not opposing renewal landlords who intend to resist the grant of a new lease Whether the notice is opposed or unopposed, it must follow the prescribed form or be ‘substantially to the like effect’...

Flowchart This Flowchart helps determine which stamp duty land tax (SDLT) provisions are relevant on a lease renewal where a tenant remains in occupation by ‘holding over’ after a fixed-term lease ends. It should be considered together with the fuller Practice Note: SDLT—holding over. The SDLT provisions governing situations where a tenant holds over a lease, and that lease is subsequently renewed, are intricate and often complex...

In Scotland, minor offences proceed by way of a summary complaint...

Under the Landlord and Tenant Act 1954 (LTA 1954), a business lease carries on automatically after the end of the contractual term if the tenant remains in occupation for business purposes. Either party can bring those statutory rights to an end by serving one of the prescribed termination notices. This flowchart explains the steps for an unopposed business lease renewal under the LTA 1954. For the procedure where renewal is opposed, see: LTA 1954 opposed lease renewal procedure—flowchart. For further detail on LTA 1954 security of tenure and the court process, consult Practice Notes: LTA 1954 business lease renewal—proceedings and LTA 1954 business lease renewal—termination. Note 1 Diarise a date at least 12–18 months before the contractual expiry of the existing lease. See Practice Note: LTA 1954 business lease renewal—termination. Note 2 Information must be supplied within one month of service of the notice. A party is obliged to correct any information provided for six months after receiving the notice. This applies to both parties equally...

In this issue: Leasing property Property development Residential property Key developments and horizon scanning LexTalk®Property: a Lexis®Nexis community Additional property updates this week Daily and weekly news alerts Trackers Leasing property Code—terms of renewal lease In EE Ltd v AP Wireless II (UK) Ltd [2024] UKUT 216 (LC), the Upper Tribunal (Lands Chamber) fixed the terms of a replacement lease for a telecommunications site under the Electronic Communications Code. The earlier lease had ended and the claimants sought new Code rights from the present landlord. Two issues were in dispute: (1) the conditions allowing the landlord to bring the new lease to an end for redevelopment, and (2) the level of rent or consideration payable. The parties’ valuers advanced divergent figures—£1,000 per annum for the claimants and £2,850 per annum for the respondent. The Tribunal found for the respondent on the break right, permitting termination for redevelopment, including telecoms redevelopment, but only after the fifth...

In this issue: Business tenancies Disputes and remedies Property Disputes in Scotland LexTalk®Property Disputes: a Lexis®Nexis community Additional Property disputes updates Daily and weekly news alerts Dates for your diary New and updated content Trackers Latest Q&A Business tenancies Competing approaches to a tenant’s ‘holding’ in claims for renewal of business tenancies (Sainsbury’s Supermarkets Ltd v Medley Assets Ltd) In Sainsbury’s Supermarkets Ltd v Medley Assets Ltd [2024] Lexis Citation 358, a contested application to renew a business tenancy under the Landlord and Tenant Act 1954 (LTA 1954) was examined. The landlord relied on ground (f), asserting a reasonable need to recover possession to undertake substantial works. A key ancillary question concerned the scope of the tenant’s ‘holding’, hinging on how that term is construed in LTA 1954, s 30, and whether it aligns with or differs from ‘holding’ in LTA 1954, s 32 (the property to be included in any new tenancy)....

In this issue: Transferring property Statutory compliance Leasing property Residential property Property development Environment, energy and buildings Investigating title Property in Scotland Additional property updates this week Daily and weekly news alerts New and updated content Trackers Transferring property Supreme Court holds any ten-year period of reasonable belief within period of adverse possession sufficient In Brown v Ridley [2025] UKSC 7, the Supreme Court allowed the appeal unanimously. Interpreting LRA 2002, Sch 6, para 5(4)(c) correctly, the Court confirmed that any qualifying ten-year stretch during which the applicant reasonably believed they owned the land is enough. See: Supreme Court holds that any ten-year period of reasonable belief of ownership sufficient for registration under LRA 2002 (Brown v Ridley). HM Land Registry updates Practice Guide 8 HM Land Registry (HMLR) has revised Practice Guide 8—Execution of deeds. An update to section 2.7.2 clarifies that HMLR will accept a certificate from...

What is a CVA? A company voluntary arrangement (CVA) is a form of insolvency that permits a company to enter a binding agreement with its creditors to compromise unsecured debts or otherwise agree how its affairs are handled. The directors continue to run the business, under the oversight of an insolvency practitioner. Retailers, particularly those with extensive property portfolios, frequently adopt so‑called ‘landlord CVAs’ to reset rental commitments and shut loss‑making stores. This note outlines how property law and landlord and tenant considerations may emerge under such a CVA. It highlights provisions commonly included in CVAs and explains how they tend to work in practice. Nevertheless, each CVA will vary according to the precise terms proposed. It is therefore vital to examine the CVA proposal carefully to assess its effect on creditors. This note does not provide detailed guidance on the mechanics of approving and implementing a CVA. For Practice Notes addressing the CVA procedure, see: Company voluntary arrangements—an introductory guide The CVA proposal and...

This Practice Note sets out the practical measures a tenant should take to renew its business tenancy under the Landlord and Tenant Act 1954 (LTA 1954) where the landlord does not object. It outlines how to serve a section 26 request for a new lease or respond to a landlord’s section 25 notice, the time limit for starting proceedings, agreeing extensions to that statutory limit, the required form and content of the claim, the correct court for issue, how to answer the claim, and the subsequent stages of the lease renewal process. Check LTA 1954 applies Before acting, confirm that LTA 1954 applies per s 23, namely: there is a periodic or fixed-term tenancy; the LTA 1954 does not cover, for example, a licence or a tenancy at will the tenant occupies at least part of the premises that occupation is wholly or partly for business purposes and the letting is not within a class excluded from LTA 1954 protection ...

Practice Note overview This Practice Note sets out the key concepts and common hazards involved in the reinstatement of tenants’ alterations. The topic is often contentious: landlords may inherit premises in an unlettable condition, and tenants can be required to carry out reinstatement works—potentially lasting months—right at the eleventh hour... Scope exclusions Reinstatement following damage by an insured (or uninsured) risk—see instead Practice Notes: Negotiation guide—insurance clauses—commercial leases and Insurance issues for tenants Dilapidations in relation to disrepair—see instead: Dilapidations—overview No reinstatement obligation Where there is no obligation to reinstate the demised premises, any lawful alteration becomes part of the premises and the tenant cannot be compelled to reverse it. The tenant must yield up the premises with those alterations, although it may remove any tenant’s fixtures up to the very last moment of the term—see Practice Note: Fixtures and fittings. In Peel Land and Property v TS Sheerness Steel, the Court of Appeal confirmed that, while a tenant is,...

1 Reserve Fund 1.1 Definitions In this clause, the following further definitions apply: Fund Account – an interest‑bearing [ trust ] account [ opened with [ name of bank ] ] held in the Landlord’s name; Reserve Fund – a fund that the Landlord may, though is not obliged to, set up and keep from time to time to receive and hold a Reserve Fund Contribution; Reserve Fund Contribution – the sum (if any) in each Service Charge Period that the Landlord [ (acting reasonably) ] determines to be a fair annual payment by the Tenant towards the advance funding of [ providing the Services OR regularly‑recurring major items of [ the Service Costs OR service charge expenditure ] ] [ (including, but not limited to, repair, decoration, maintenance and renewal) ], and including any VAT payable where the Landlord cannot obtain a credit for that VAT from HM Revenue & Customs...

Notice to complete Under: Leasehold Reform (Collective Enfranchisement and Lease Renewal) Regulations 1993, SI 1993/2407, Schedule 2 Paragraph 8 , and Leasehold Reform, Housing and Urban Development Act 1993 Flat: [ insert address and description of the property ] (the Flat) To: [ insert full name of the recipient (landlord or tenant) ] of [ insert address ] ([ Landlord OR Tenant ]) Given by: [ insert full name of person giving the notice (landlord or tenant) ] of [ insert address ] ([ Landlord OR Tenant ]) This notice follows a section 42 notice of claim in relation to the Flat dated [ insert date in its full format DD-Month-Year ] and a section 45 counter-notice dated [ insert date in its full format DD-Month-Year ] under that Act: The draft lease is [ approved OR deemed to have been approved ]; and You must complete and accept the grant of the lease of the Flat in the approved form on...

Introduction Prepare the claim form and particulars using Form LT503A. Landlords seeking an order for a fresh tenancy to be granted to the tenant must do so on Form LT503A. These drafting notes are intended solely to accompany Form LT503A. Relevant Precedents For other relevant Precedents, see: Directions—unopposed LTA 1954 business lease renewal Acknowledgement of service by tenant in unopposed claim by landlord for new tenancy Acknowledgement of service by landlord in unopposed claim by tenant for new tenancy General points Use these notes to help you complete Form LT503A, the claim form used when a landlord of commercial premises asks the court to grant the tenant a renewal lease. The Part 8 route applies; refer to the Practice Note on CPR Part 8 claims (the alternative procedure). Evidence is not required on issue unless directed by the court. You may start the claim at any County Court hearing centre; however, if the selected court does not cover...

Under Part II of the Landlord and Tenant Act 1954 (LTA 1954), security of tenure covers most business leases, save where the parties have ‘contracted out’ of those rights. Section 38A of the LTA 1954 permits landlord and tenant to agree that security of tenure will not apply. To make the agreement effective, the parties must comply with the contracting-out process specified in LTA 1954, s 38A(3) and Regulatory Reform (Business Tenancies) (England & Wales) Order 2003 (RRO 2003), SI 2003/3096, Sch 2...

Part II of the Landlord and Tenant Act 1954 (LTA 1954) Part II of the LTA 1954 confers security of tenure on business tenants unless its requirements have been contracted out. As a result, a commercial lease does not lapse by effluxion of time; instead it continues as a statutory tenancy until it is brought to an end in accordance with the LTA 1954, or when the court grants a new lease on the application of either the landlord or the tenant, or when the lease is terminated by surrender or by forfeiture under the scheme set out therein in full...

If the landlord and tenant cannot agree the terms of a renewal lease, either party may then apply to the court so that the court can determine those terms under section 24(1) of the Landlord and Tenant Act 1954 (LTA 1954)...