{"id":181221,"date":"2023-05-23T04:09:45","date_gmt":"2023-05-23T03:09:45","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=181221"},"modified":"2023-05-23T04:09:47","modified_gmt":"2023-05-23T03:09:47","slug":"section-25-vs-26-notice","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-lease-property\/section-25-vs-26-notice\/","title":{"rendered":"Key Differences Between a Section 25 and a Section 26 Notice for UK Commercial Leases"},"content":{"rendered":"\n

A commercial lease is where a business owner occupies a property or part of one as their business premises. The property owner\/landlord grants sole occupation for a given term (business tenancy) in return for rental payments. There are many legal procedures associated with commercial leases, and both landlords and tenants must ensure they follow them correctly. One procedure is when a landlord or tenant wishes to renew the commercial lease or terminate the existing lease. If the lease is a protected business tenancy, you can do this with a Section 25 Notice or a Section 26 Notice. This article will explain the key differences between the two notices.<\/p>\n\n\n\n

Commercial Lease Agreement<\/h2>\n\n\n\n

A commercial lease agreement<\/a> contains the terms and conditions of your commercial lease. It is a binding contract between you and your landlord and will detail terms, such as the rental amount and lease term. <\/p>\n\n\n\n

Your commercial lease may have tenure security, meaning it is a protected lease<\/a>. Where it does, a commercial tenant has a legal right to have a new tenancy when they reach the end of the lease term. However, you must follow a particular procedure when renewing or terminating these types of commercial leases, which includes Section 25 Notices and Section 26 Notices. Both can be complicated, so it is beneficial to seek legal advice when you need to use either notice. <\/p>\n\n\n

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Cheatsheet for UK Leasing Terms<\/div>\n
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This cheatsheet includes practical tips to understand key clauses and avoid disputes in leasing agreements.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n

Section 25 Notice  <\/h2>\n\n\n\n

A Section 25 Notice<\/a> arises from the corresponding section of the Landlord and Tenant Act 1954. <\/em>It concerns what a landlord should do should they wish to terminate a commercial lease with security of tenure. It also concerns the process if a landlord wishes to renew the tenancy with a new one with different terms. Therefore there are two different forms of Section 25 Notice.<\/p>\n\n\n\n

If a landlord wishes to terminate the tenancy and not renew it with a new one, they must serve their commercial tenant with a Section 25 Notice within 6\u201312 months of the date they wish it to end. However, if their tenant has already served a Section 26 Notice, they cannot serve a Section 25 Notice.\u00a0<\/p>\n\n\n\n

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A landlord is only allowed to terminate the commercial lease for one of seven reasons which are where the:<\/p>\n