You may sign a commercial lease for property to run your business as a business owner. Your commercial lease will specify a set period for using the commercial property, which is the lease term. When this ends, you must decide whether to remain at or leave the property. Whether you have a protected or unprotected lease can determine your choices. This article will explain your options at the end of a commercial lease agreement in the UK.<\/p>\n\n\n\n
A commercial lease is where you occupy a landlord\u2019s commercial property for a specific business use as your commercial premises. A commercial lease agreement governs your commercial lease and is a written binding contract detailing both parties rights and responsibilities. <\/p>\n\n\n\n
There are two main types of commercial leases: <\/p>\n
If you are happy with your business property, you can remain in the property once your commercial lease reaches the end of the lease term. Therefore, you will want to renew your lease<\/a>. <\/p>\n\n\n\n If your commercial lease is protected, it has security of tenure, meaning that at the end of your lease term, the lease does not end, and you can renew it. Either you or your landlord can trigger this renewal process. You can do this by serving a Section 26 Notice<\/a>, and your landlord by serving a Section 25 Notice.\u00a0<\/p>\n\n\n\n The notices can also state suggested new terms of your renewed commercial lease, which should be no less beneficial than your existing lease, and your rent should be at the current market level. If you disagree about the new lease terms, you can ask a court to decide. While waiting for the court decision, you have a legal right to stay on the property. If neither of you triggers the renewal process and you do not move out, your lease agreement will continue on the same terms as your current lease. <\/p>\n\n\n\n However, although a protected lease gives a right to renewal, your landlord can oppose this using a Section 25 Notice. This means they wish to gain possession of the commercial property and can do so if they have reasonable legal grounds. If your landlord serves you with this notice, they must provide you with evidence to support it. <\/p>\n\n\n\n Unfortunately for commercial tenants, most commercial leases are unprotected. This means that you and your landlord \u2018contract out\u2019 of parts of property legislation, meaning you have no legal right to a lease renewal, and the tenancy will end at the end of the fixed term. Also, the notice procedures applicable to protected tenancies will not apply to your commercial lease.<\/p>\n\n\n\n You can tell if your commercial lease is unprotected because you will have the following:<\/p>\n\n\n\n If you have an unprotected commercial lease, you have no right to remain in the commercial premises should you wish to do so. Therefore, you must negotiate a new lease with your landlord before your existing lease expires.<\/p>\n<\/div>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\nProtected Leases<\/h3>\n\n\n\n
Unprotected Leases<\/h3>\n\n\n\n
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