When a business tenancy comes up for renewal, it can act as a trigger for numerous areas of dispute between landlord and tenant. It is also an important opportunity for both landlords and tenants to consider their future options.
There will be many commercial and legal considerations to bear in mind.
Renewing or terminating a business tenancy
Whether you are renewing or terminating a business tenancy there are formal procedures which must be complied with. Strict deadlines and requirements apply therefore even in situations where the parties are agreed as to the course of action to be taken, legal support is crucial to guarantee your legal rights are upheld.
Additionally, whether you are a landlord or tenant, you should be aware of any clauses in the lease which may take effect towards its conclusion. For example, dilapidations are likely to become an issue at the end of a business tenancy.
Disputes over renewing a business tenancy
The tenant may wish to renew the tenancy but find that the landlord is opposed to this. However, this does not necessarily mean that the tenancy cannot be renewed. By default, the Landlord and Tenant Act 1954 grants security of tenure to business tenants, and there are only a very limited number of grounds upon which a landlord may prevent the tenancy renewing in this way.
As such, unless the security of tenure provisions have been ‘contracted out’ at the start of the tenancy, a tenant will be in a strong position when deciding whether to renew the business tenancy or not.
Alternatively, both parties may fundamentally want the tenancy to continue but under different terms, and disagree as to the substance of the new lease. Altering the terms of a business tenancy is an opportunity to align it as closely as possible to the needs and objectives of your business. However, without specialist advice, you also run the risk of agreeing terms which may have serious legal consequences in the future.
If you are facing any of these situations, it is vital that you have legal expertise on hand. Luscombe Gray can negotiate on your behalf and ensure that your legal rights, and the interests of your business, are protected.
Instructing Luscombe Gray
Luscombe Gray is a boutique property litigation firm, providing a legal service tailored to the needs of our clients. We believe first-class legal advice should be available to all.
If you need legal support for a dispute concerning business tenancies, contact Luscombe Gray for clear and expert advice. Your case will be handled by an experienced property litigation solicitor.
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