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.
Ask the AI assistant
Describe your renewal in your own words. Every answer cites the section of the Act it relies on, so you can check it.
Open the assistantSection 25 analyser
Paste or upload a landlord's notice and get a plain-English summary plus a date check.
Check a noticeLease analyser
Upload a lease and get a synopsis with the renewal risk points flagged.
Upload a leaseNotice deadline calculator
Work out the section 25 and 26 cut-off dates from your term end date.
Work out datesRead 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.
Read guideSecurity 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.
Read guideSection 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.
Read guideSection 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.
Read guideCommercial 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.
Read guideGrounds 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.
Read guideContracting 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.
Read guideHow 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.
Read guideInterim 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.
Read guideCompensation 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.
Read guideWhat 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.
Read guideWho 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.
Read guide1954 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.
Read guideApplying 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.
Read guideTerms 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.
Read guide17 provisions
Rent is the open market rent for the holding, disregarding the tenant's occupation, any goodwill the tenant created, most tenant improvements, and certain licensing value. The court may include a rent review.
For the tenant
Voluntary improvements made in the last 21 years are generally disregarded — so you do not pay rent twice.
For the landlord
Comparable evidence drives the outcome; assemble market lettings early.
Key case law
Ponsford v HMS Aerosols Ltd [1979] AC 63
House of Lords · 1979
Issue: Are tenant improvements rentalised on review or renewal?
Held: Under an unqualified review clause improvements can be rentalised, which is why the statutory disregards in s.34 matter so much on renewal.
On renewal, insist that voluntary improvements made in the last 21 years are disregarded so you do not pay rent on your own investment.
Ask how this applies to meAmika Ltd v Fitzroy Place Residential Ltd [2021] EWHC 25 (Ch)
High Court · 2021
Issue: How does the court fix rent and lease length where the market has moved sharply?
Held: By valuing the hypothetical letting on the statutory assumptions and disregards at the valuation date, tested against comparable evidence rather than the parties' hopes.
Build a comparables file early. The valuation date, not the notice date, drives the rent.
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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