Lease Renewals

A lease renewal is your chance at the end of the lease to consider whether you want to remain in the property as tenant, or, as a landlord, to decide if you want to get the property back for other purposes.  It is your opportunity to perhaps modernise the current lease terms, from both a legal and valuation perspective.  A surveyor will advise you where a particular clause could affect rental and which alternatives might work in your favour.

There are two types of leases – those protected by the Landlord and Tenant Act 1954 (54 Act lease) and those which are not, known as a “contracted out” lease.  A 54 Act lease gives a tenant automatic rights of renewal (known as security of tenure). If a new lease cannot be agreed between the parties, then the process is specified by the 1954 Act, and the new lease terms and rent can be decided by the courts.

A contracted out lease gives no automatic rights of renewal and there are no provisions regulating the new lease terms. That means that if the parties cannot agree, the landlord has no obligation to grant a new lease, and the tenant has to vacate the property. Both parties can lose out.

Lease renewal is often the time when landlords assess their property to ensure that it’s being suitably maintained. Most leases specify works that should be carried out. Repairs or maintenance work that hasn’t happened is known as dilapidations and a landlord may issue a Schedule of Dilapidations requiring those works to be carried out; I can advise you on the extent of any repairs required under the lease and the validity of that schedule.

Whether you occupy or own one property or a large portfolio, I take away the hassle. I can ensure the correct notices are served at the appropriate time in conjunction with your solicitor, and negotiate the best result for you. I can lead you through the property maze of the 1954 Landlord and Tenant Act, contracted out leases, and dilapidations with my specialist commercial property knowledge.

I read the small print, so you don’t have to.

To find out how I can add value and give you peace of mind, please contact me here