{"id":180600,"date":"2023-04-27T07:53:31","date_gmt":"2023-04-27T06:53:31","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=180600"},"modified":"2026-03-31T05:28:43","modified_gmt":"2026-03-31T04:28:43","slug":"section-25-notice","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-lease-property\/section-25-notice\/","title":{"rendered":"What Actions Should Commercial Tenants Take if They Receive a Section 25 Notice?"},"content":{"rendered":"\n

A Section 25 notice is a formal notice served by a commercial landlord to either terminate a business lease or propose new lease terms under the Landlord and Tenant Act 1954<\/em>. For your business, receiving one is a critical moment, as it can determine whether you keep your premises, renegotiate terms or face relocation, with high cost and operational impact. Strict timing rules apply, and failure to respond or act before the deadline can affect your right to renew the lease.\u00a0 This article explains what a Section 25 notice is, how it works and what steps you should take if you receive one.<\/p>\n\n\n\n

Commercial Lease and the Impact of the 1954 Act<\/h2>\n\n\n\n

In a commercial lease<\/a>, you occupy a commercial property in return for rent. The lease will specify a commencement and an end date. Throughout the term, the landlord and the tenant must respect their rights and obligations. <\/p>\n\n\n\n

Usually, a tenant takes a lease of the premises for a defined time and will vacate the premises at the end of the defined term. However, under the Landlord and Tenant 1954 Act<\/em><\/a>, all business tenancies have a right to \u2018hold over\u2019 past the end of this term: security of tenure. In other words, business tenants can stay in occupation past the end date of their lease. Following this, the tenant can request a renewal lease<\/a>.<\/p>\n\n\n\n

It is now common for leases to be \u2018contracted out of the Act\u2019, which essentially means that the tenant accepts to forgo their rights explained above. Landlords prefer this as it gives them more control over the occupation of the premises. To contract out validly, a few documents must be executed before the lease is granted, which solicitors can assist you with. <\/p>\n\n\n\n

What is a Section 25 Notice?   <\/h2>\n\n\n\n

When you benefit from the Act as a commercial tenant, you can request a renewal lease on the same terms as your existing lease. There are procedures that the landlord must follow if it wishes to oppose the lease renewal or propose new terms for that lease, which is the issue of a Section 25 Notice. This gets its name from the relevant section of the Act. <\/em>Your commercial landlord may use a Section 25 Notice if they either wish to:<\/p>\n\n\n\n