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Landlord and Tenant Act 1954 · Part II

Understand your rights. Check your dates. Analyse your documents.

Business lease renewal under Part II of the Landlord and Tenant Act 1954 — notices, deadlines, grounds of opposition, rent and compensation — for tenants, landlords and their advisers.

Built around Part II of the Landlord and Tenant Act 1954 for England and Wales. General information — not legal advice.

The 1954 Act is under review

The Law Commission published its second consultation paper on 16 June 2026. The consultation closes on 16 September 2026. These are proposals — consultation, not law.

Explore the proposed reforms
17
Part II provisions, summarised
15
Plain-English guides
20+
Leading authorities
4
Free renewal tools

Start with a tool

Four things you can do in a couple of minutes — each one grounded in the provision it applies.

Read the guides

Plain-English explanations of the provisions that decide a renewal, each linked back to the section it comes from.

Landlord and Tenant Act 1954 explained

Plain-English guide to Part II of the Landlord and Tenant Act 1954: who is protected, how a business tenancy is renewed or ended, and the key deadlines.

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Security of tenure for business tenants

What security of tenure means under the 1954 Act: which tenancies qualify under section 23, how the continuation tenancy works, and how protection is lost.

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Section 25 notice explained

What a section 25 notice does, the prescribed forms, the 6–12 month window, how to check validity and what a tenant must do to keep the right to a new lease.

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Section 26 request explained

How a tenant uses a section 26 request to start lease renewal: the 6–12 month window, the landlord's two-month counter-notice, and when to serve first.

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Commercial lease renewal under the 1954 Act

A step-by-step timeline of business lease renewal under the 1954 Act: notices, negotiation, court applications, interim rent and the new lease.

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Grounds for opposing a lease renewal

The seven section 30(1)(a)–(g) grounds a landlord can use to oppose a new business tenancy: what each requires and which trigger compensation.

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Contracting out of the 1954 Act

The section 38A procedure for excluding security of tenure: the warning notice, simple or statutory declaration, the 14-day rule and common mistakes.

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How the rent is decided on lease renewal

How section 34 fixes the rent on a renewed business tenancy: the open-market test, the four statutory disregards and tenant's improvements.

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Interim rent explained

Who can apply for interim rent, from what date it runs, how it is calculated under sections 24C and 24D, and when applying helps a landlord or a tenant.

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Compensation when a business tenancy ends

When a business tenant gets compensation under section 37 of the 1954 Act, how the one-times and two-times rateable value multipliers work, and exclusions.

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What happens when a commercial lease expires?

What happens at the end of a protected business lease: how section 24 continues the tenancy, the rent payable while holding over, and contracted-out leases.

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Who is the competent landlord?

How to identify the competent landlord for a 1954 Act renewal with intermediate leases, why it matters for sections 25 and 26, and section 40 notices.

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1954 Act notice deadlines

Every deadline on a business lease renewal: the 6–12 month notice window, the two-month counter-notice, the court cut-off and the section 64 three-month tail.

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Applying to court for a new tenancy

How and when to issue a 1954 Act renewal claim: who can apply, unopposed and opposed claims, which court to use, and what section 64 means for the old tenancy.

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Terms of the new lease

How the court fixes renewal lease terms under sections 32 to 35: the holding, the length of term, and the O'May principle on carrying over existing terms.

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17 provisions

A tenant with a fixed term of more than one year can request a new tenancy, specifying a start date 6 to 12 months ahead and proposing rent and terms. The landlord then has two months to serve a counter-notice stating opposition and grounds.

For the tenant

This lets you take the initiative — helpful for fixing rent when the market is rising.

For the landlord

Miss the two-month counter-notice window and you lose the right to oppose renewal.

Key case law

  • Mannai Investment Co Ltd v Eagle Star Life Assurance Co Ltd [1997] AC 749

    House of Lords · 1997

    Issue: Is a notice invalid because of an obvious clerical error in the date?

    Held: Not necessarily. A notice is valid if a reasonable recipient with knowledge of the lease would understand what was meant, despite the error.

    Do not assume an opponent's slightly wrong notice is void — and do not rely on your own error being forgiven where the mistake is genuinely misleading.

    Ask how this applies to me
  • Polyviou v Seeley [1980] 1 WLR 55

    Court of Appeal · 1980

    Issue: Can a tenant withdraw or re-date a s.26 request once served?

    Held: No. A valid s.26 request fixes the timetable; the tenant is bound by the date specified and the statutory windows that follow it.

    Model the whole calendar before serving a s.26 request — the date you pick drives your court-application deadline.

    Ask how this applies to me
  • Aberdeen Steak Houses Group plc v Crown Estate Commissioners [1997] 2 EGLR 107

    High Court · 1997

    Issue: Must a s.25 notice be served by the competent landlord identified in the lease chain?

    Held: Yes. A notice given by someone who is not the competent landlord at the date of service is ineffective.

    Check the title and the mesne interests before serving — the right notice from the wrong party achieves nothing.

    Ask how this applies to me
  • Kammins Ballrooms Co Ltd v Zenith Investments (Torquay) Ltd [1971] AC 850

    House of Lords · 1970

    Issue: Can a landlord waive the tenant's failure to apply to court within the statutory window?

    Held: Yes, by election. The time limits protect the landlord, so a landlord who treats the claim as valid may be precluded from taking the point.

    Never rely on waiver — but if a landlord has negotiated as though a late claim were good, the point is worth investigating.

    Ask how this applies to me
  • Meah v Sector Properties Ltd [1974] 1 WLR 547

    Court of Appeal · 1974

    Issue: Can a tenant serve a s.26 request after the landlord has served a valid s.25 notice?

    Held: No. A s.26 request cannot be made once a s.25 notice has been given; the notices are mutually exclusive.

    Whoever moves first sets the procedural track. If you are the tenant and want to control timing, serve first.

    Ask how this applies to me

Lease renewal questions, answered

What does the Landlord and Tenant Act 1954 do?

Part II gives most business tenants in England and Wales security of tenure. The tenancy does not end on its contractual expiry date: it continues under section 24 until it is ended by one of the statutory routes, and the tenant is entitled to a new lease unless the landlord proves a ground of opposition under section 30.

How much notice does a section 25 notice need to give?

Between six and twelve months. The date specified in the notice cannot be earlier than the date the tenancy could have been ended at common law, and the notice must state whether the landlord opposes a new tenancy and, if so, on which section 30 grounds.

What is the difference between a section 25 notice and a section 26 request?

A section 25 notice is served by the landlord to end the current tenancy, either offering or opposing a renewal. A section 26 request is made by the tenant to request a new tenancy on proposed terms. Either route starts the statutory timetable, and only one of them can be running at a time.

What happens if the deadline to apply to court is missed?

Security of tenure is lost. Unless the parties have agreed a written extension under section 29B before the deadline, a tenant who does not apply to court in time loses the right to a new tenancy and the tenancy ends on the date specified in the notice or request.

Can a business tenancy be taken outside the Act?

Yes. The parties can contract out under section 38A, but only if the statutory health warning is given to the tenant before the tenancy is entered into and the tenant makes the required declaration or statutory declaration. Get the procedure wrong and the tenancy remains protected.

Is the guidance on this site legal advice?

No. It is general information on the law of England and Wales, published by mcgarrigle & co. Renewal outcomes turn on the wording of your lease and the dates in your notices, so take advice on your own facts before acting.

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