It is important that you exercise an option to renew your lease in the way set out in the lease.
If you do not exercise an option to renew properly the landlord may not be obliged to renew your lease. This could be detrimental to your business.
Most commercial leases require tenants to notify the landlord in writing and within certain timeframes (usually between 3 and 6 months before the end of the term). It is important to diarise these key dates so you don’t miss them! You’d be surprised how many tenants overlook this and find themselves ‘holding over’ as monthly tenants – which is not ideal.
You are entitled to a lease identical to the expired lease and a renewal does not present the landlord with an opportunity to review the lease (other than where necessary). The landlord usually prepares a deed of renewal of lease which incorporates the expired lease by reference and sets out the necessary changes.
If you lease retail premises however, the legislation now requires the landlord to give you written notice of the expiry date for any options to renew. If the landlord fails to give you notice the option expiry date may be extended. Other leases do not have this safeguard.
Please note: “This publication is for information purposes only and does not constitute legal advice. If you have any questions about this or any other commercial legal issue, please contact Helen Kay at Rise Legal.”