Termination and Renewal of Leases
There are various ways in which a business lease or licence may be brought to an end by the tenant. The documents in this subfolder will help tenants to bring leases, licences and tenancies at will to an end in the proper way.
If there are termination provisions in the document, such as a break clause in a lease or an early termination clause in a licence, a notice needs to be served strictly in accordance with the terms of the lease or licence. A tenancy at will can be terminated at any time with immediate effect.
If the contractual term of a lease has come to an end (or is about to do so) and the tenant wishes to vacate, a notice under section 27 of the Landlord and Tenant Act 1954 can be served. If the tenant wishes to remain in occupation and have a new lease granted to it a section 26 notice should be served.
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Frequently Asked Questions
How do I end my commercial lease before the term is up? +
Only if the lease gives you a right to do so, usually a break clause. A break clause lets the tenant (or landlord) end the lease early on a set date or dates, but the break notice must be served strictly in accordance with the lease: the right form, the right period and any conditions such as paying rent up to date and giving vacant possession. Miss a condition and the break can fail, leaving you tied in. A tenancy at will, by contrast, can be ended at any time.
My lease term is ending and I want to leave, what do I do? +
Serve a notice under section 27 of the Landlord and Tenant Act 1954. A business tenancy does not just end on the last day of the term: it continues under the Act until properly ended. A tenant who wants to vacate can give the landlord written notice under section 27, broadly at least three months before the end of the term or, if the tenancy has already continued, on three months' notice expiring on any day. Serve it correctly so you are not held to a continuing tenancy and further rent. Simply-Docs supplies the section 27 notice.
My lease is ending but I want to stay, how do I get a new lease? +
Serve a section 26 request for a new tenancy, if your lease is protected by the Landlord and Tenant Act 1954. A tenant with security of tenure can start the renewal process by serving a section 26 request on the landlord, proposing the terms of the new lease and a start date. The landlord then has a limited window to oppose renewal, and can do so only on a section 30 ground. If the lease was contracted out, you have no renewal right and cannot use section 26. Simply-Docs supplies the section 26 request.
What is the difference between a section 26 and a section 27 notice? +
They point in opposite directions. A section 26 request is served by a tenant who wants to stay and obtain a new lease, starting the statutory renewal process. A section 27 notice is served by a tenant who wants to leave, ending a tenancy that would otherwise continue under the Landlord and Tenant Act 1954. Both are tenant notices for the end of the term, so choose by your aim: renew with section 26, exit with section 27. If in doubt about timing, check the lease dates and the Act carefully before serving.
