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 When you renew a commercial lease in the UK, there are some key points you should be aware of. We explore these in more detail below.<\/p>\n\n\n\n When renewing a commercial lease, you first need to know what type of lease you have in terms of whether it is a \u2018protected lease\u2019 or an unprotected one. Unfortunately, most commercial leases nowadays tend to be unprotected leases.<\/p>\n\n\n\n If you have a protected lease, this means that once your lease term ends, you have a legal right to renew your lease and, therefore, stay in your business premises. Your lease automatically renews unless your commercial landlord opposes renewal on limited legal grounds. <\/p>\n\n\n\n If your commercial lease is unprotected, it does not automatically renew when the lease term ends, as you have no legal right to renew. Instead, if you wish to remain in the commercial premises and renew your lease, you can try to negotiate renewal with your landlord. It would help if you thought about this sometime before the lease comes to an end.<\/p>\n\n\n\n If you have a protected lease, you should be aware of what a Section 25 Notice is. This is the notice your commercial landlord will use when they either wish you to refuse lease renewal on limited legal grounds or to instigate the automatic renewal of your lease. If they want to renew it, they will set out new terms, which you can agree on, or you can negotiate with your landlord. <\/p>\n\n\n\n You must not serve a Section 25 Notice more than 12 months or less than 6 months before the date your landlord the current lease ends.<\/p>\n<\/div>\n\n\n\n Whilst your commercial lease will renew automatically, as a commercial tenant, you can trigger the renewal process where your landlord still needs to serve you with a Section 25 Notice. You can do this with a Section 26 Notice, where you may also request new lease terms. If you wish to trigger your lease renewal, you should provide the Section 26 Notice at least 6 months before the end of the lease term but not more than 12 months before. Your landlord has two months to respond to it.<\/p>\n\n\n\n When you have a protected lease, and it is due to renew automatically, your landlord can only oppose this with a Section 25 Notice on specific legal grounds. If they oppose you in response to you serving them a Section 26 Notice, they have two months to refuse your request. There are seven grounds on which your commercial landlord can refuse your legal right to automatic lease renewal. These are because:<\/p>\n\n\n\n If you do renew your commercial lease, whether it renews automatically or you have to negotiate renewal, you effectively start a new lease with your landlord. Therefore, you can negotiate the terms of this. As a commercial tenant, when negotiating new lease terms, you must consider, for example:<\/p>\n\n\n\nKey Points About Lease Renewal <\/h2>\n\n\n\n
Type of Lease<\/strong><\/h3>\n\n\n\n
Section 25 Notice<\/strong><\/h3>\n\n\n\n
Section 26 Notice<\/strong><\/h3>\n\n\n\n
Opposing Lease Renewal<\/strong><\/h3>\n\n\n\n
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Lease Negotiations<\/h2>\n\n\n\n
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\n Cheatsheet for UK Leasing Terms<\/div>\n
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