The Finish of the Lease is Nigh
A number of things to consider if your lease is coming to an end within the next twelve months:
Do you wish to renew your lease?
If the answer is yes then you need to establish whether or not you have got a statutory right to renew. The default position for business premises is that you do however this right will be excluded by the landlord at the outset. If you are in any doubt ask your lawyer to test your lease for you.
If you are doing get pleasure from a right to renew, you can build a politician request for a brand new lease at any time throughout the last year of the term (known as a s26 notice) - provided the landlord hasn't already served notice - additional on that shortly. This request will state the terms you require (length of lease, rent etc). The landlord then has 2 months to say whether or not it agrees to your request. In certain circumstances, the owner is entitled to refuse to grant you a replacement lease and this can generally give rise to a right to compensation.
If you are doing nothing, the landlord may serve a proper notice (called a s25 notice) bringing the lease to an finish at the top of the contractual term stated in the lease. This notice will state whether or not the landlord wishes to supply you terms for a replacement lease and, if it will, the proposed terms of that lease.
If each you and the owner do nothing (and your statutory right of renewal has not been excluded) then your lease will not come back to an end whether or not the contractual term has expired. Instead, the lease can stick with it till either you or the owner serves one among the notices observed above.
Doing nothing can be tempting as a result of till one amongst you serves notice, you will still pay rent at the same rate and you will not incur the expense of addressing renewing the lease. In the current market, however, industrial rents are falling so you'll wish to serve notice to attempt and renew the lease at a lower rent. The owner solely needs to give you six months notice of its intention to bring the lease to an finish thus you'll want to serve notice yourself rather than be forced to relocate inside six months.
If you're within the last year of your lease and considering your choices then build certain you decide up the phone and decision your lawyer because the timing of service of the relevant notice can be critical and an incorrect notice might be deemed to be invalid.
Is that the property in disrepair?
This is a very important (and probably expensive) issue at the top of a lease. The landlord is entitled to form a claim for 'dilapidations' at the top of the lease. This is often based mostly upon the repairing obligations imposed on the tenant in the lease itself but conjointly on the reduction within the value of the premises as a result of the condition of the property.
It's vital to have interaction a building surveyor to determine your possible liability for repairs at the end of the lease however it's just as necessary to determine the landlord's plans for the premises. If the landlord intends to demolish the premises and redevelop the location then it can don't have any right to pass though the tenant the value of effecting repairs as a result of the condition of the premises hasn't caused it to suffer any loss.
One method to determine the landlord's intentions is to serve a tactical s26 notice. Even if you do not wish a new lease, you can serve a s26 notice requesting a replacement lease just to force the owner to reply within two months confirming its intentions. Serving the notice imposes no obligation on the tenant to really sign a new lease.
Strategy can be vital when renewing your lease to ensure you achieve the simplest deal possible. If you are approaching the last year of your lease then its time to think about your options.
Author Resource:
aaron adish has been writing articles online for nearly 2 years now. Not only does this author specialize in Leasing Renting, you can also check out latest website about
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