Is your lease coming to an end? Do you have a break option or want to re-negotiate your lease?

Lease renewals fall into two categories depending on whether the tenant agreed to contract out of the Landlord and Tenant Act 1954 (the Act) when they originally took the lease.

If the lease is outside “the Act” the tenant has no right to a new lease and it is imperative that the tenant addresses the renewal well ahead of the expiry date to factor in a “Plan B option” of relocating. This Plan B preparation will give the tenant a more robust negotiating position in any ‘stay put’ discussion with the landlord.

If the lease is inside “the Act” the tenant usually has a right to a new lease at “a market rent” and the time pressure is off. The process is more valuation based, like a rent review albeit it we will look what else is available in the market and use this to negotiate the best terms with the landlord.

If a tenant receives a section 25 notice from the landlord it is imperative that early advice is sought from us as there are strict timescales that need to be adhered to otherwise the tenant will lose its right to a new lease.

Disagreements usually revolve around the term of the new lease and the rent. Resolving issues by mutual agreement is preferable and is usually achievable.  However, if serious differences of opinion persist we will act as Expert Witness under “the Act” for attendance at a court hearing or alternatively in written report form for the more cost effective PACT (Professional Arbitration on Court Terms) procedure.

What to consider when you are approaching a lease renewal

Lease Renewal FAQs

When should I start preparing for a forthcoming lease expiry?

18 months before the expiry date would not be too early.  A tenant will need to consider whether the premises remains suitable for their business and if relocation is contemplated then considerable forward planning is required before the expiry date.  Allsop’s Leasing teams can assist here.  Dilapidations implications may well arise in these circumstances and we are experienced in advising on both the valuation and legal aspects of such claims.

What do I do if I receive a Section 25 Notice?

A Section 25 Notice must be in a prescribed form.  It is vital that the content of this notice is carefully checked straight away, do not ignore the notice.

The Section 25 Notice will also tell you if your landlord intends to oppose a tenancy renewal; there are specific grounds where this is permitted such as for redevelopment purposes or for his own use.  You may need to plan an unexpected move.  We can refer you to our Office Leasing Team to help you with this.

If the landlord wishes to keep his tenant after the lease expiry but on new lease terms, again a Section 25 Notice will need to set out proposed terms. We can advise you on these terms.

Why should we appoint a lease consultant for the lease renewal process?

Where the tenant has the protection of the Landlord & Tenant Act 1954 then strict procedures must be adhered to. Strategic timing of the notices and counter notices will improve the party’s position and as market conditions are a deciding factor in determining the strategy, a lease consultant is the most effective person in the process to achieve this aim.

Meet the Lease Renewal Specialist team

Richard Bourchier


Lease Advisory &
Business Rates


James Acock


Lease Advisory &
Business Rates


John Banbury


Lease Advisory &
Business Rates