My lease is coming to an end and I have heard nothing from my landlord, what should I do?

Published on: 24th November 2015

Unless excluded from the Landlord and Tenant Act 1954 a tenant of business premises in England and Wales is automatically entitled to the grant of a new lease. The landlord may however re-open negotiations under the act but they may not do so earlier than the final 12 months of the current lease.

If neither party initiates the process then the tenant will continue to hold over following the expiry date, on the terms of the current lease and at the current rent. It is important to note however that the landlord may not have contacted you as they are aware that due to market conditions your rent would be lowered.

In a recent example Sanderson Weatherall acted for a tenant of retail premises in a large northern town previously held on a 10 year lease without breaks at a rent of £58,000 per annum. we were able to agree terms for a new lease for 5 years with a tenant break option at the 3rd year at a reduced rent of £43,000 per annum, saving the tenant a minimum of £45,000 up to the break option or potentially £75,000 over the 5 year term if the break option is not exercised.

Not every case will result in a rent reduction but it is suggested that employing a surveryor to act on your behalf will ensure you do not end up paying more than market value. This might otherwise occur if your landlord is professionally represented and you are not.  It is also important to understand that once formal procedures are instigated under the Act the tenant can still lose its security of tenure if it does not comply with the deadline set out in the notice. Having a Chartered Surveyor instructed to act for you will also safeguard against the possibility of this happening.

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Lease Consultancy

Sanderson Weatherall’s Lease Consultancy team are leaders in the field. We are expert negotiators in rent and lease terms for all forms of commercial properties across the UK. Our knowledge of the property market and experience in dealing with complex tenancy agreements allows us to deliver top results for you, no matter how big or small your business is. Our understanding of business and people also means we’ll work with you to achieve the best result, without damaging your relationship with your landlord or tenant. The Lease Consultancy team are able to offer: Lease Audits We will analyse your leases and identify, critical dates and liabilities leading to the creation of a comprehensive lease database. This will simplify your processes and avoid key dates and obligations being overlooked. Lease Renewals & Restructuring We will undertake a strategic review and inspection of your property portfolio and identify opportunities to rationalise or restructure leases, and reduce your costs by reviewing future lease events and potential liabilities. Rent Reviews We act on your behalf on the negotiation of rent and lease terms to obtain the best possible outcome. Dispute Resolution Our highly experienced lease consultancy team will represent you at Court and Arbitration and have a wealth of experience in the preparation of Expert Report and Replies to Independent Experts and Arbitrators. Members of the team are also frequently appointed by the RICS to act as arbitrators, Independent Experts and Mediators. Strategic Property Due Diligence Advice We provide detailed rental advice if you are considering acquiring property or businesses with existing leasehold liabilities. Contact Us

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