If your lease has already expired or is nearing its expiry date and you wish to remain in your existing premises, it might well be time for you to be pro-active with your Landlord before it is too late.
Most sectors of the UK property market have recovered significantly since 2008. Consequently, evidence of rental growth is starting to emerge which could strengthen your landlord’s negotiating position in a lease renewal situation. It may therefore make sense to agree a lease renewal sooner rather than later in order to pre-empt any major increase in your rent.
Weighing up your options
We can help you decide whether or not to apply for a new lease under the provisions of the 1954 Landlord and Tenant Act by serving a Section 26 Notice Requesting a New Tenancy. Alternatively, it might be better to initiate negotiations with the Landlord before serving your notice. Whichever option is appropriate, we will ensure that you secure the most advantageous lease renewal terms possible.
What are the benefits of being pro-active?
Taking action in the current market will ensure continuity of your occupation on your terms. It could also result in a reduction in your property costs in the short term. It might also ensure that your new lease is more flexible and less onerous than the original. There might even be opportunities to surrender unwanted space or to acquire additional space within the same building. In some cases, an early lease renewal may encourage the landlord to carry out improvements to common parts and/or your own demise.
What happens if I do nothing?
There is a risk that if you do nothing and the economic situation improves further, you will miss the opportunity to lower your property costs and improve the flexibility of your lease. This could have a negative impact on your business by reducing its profitability and limiting its mobility in the future.
What does tag recommend?
We recommend that if you are considering renewing your lease, you ask us to review your circumstances as soon as possible.