Landlord and Tenant Act 1954
Commercial lease renewal under the 1954 Act
In shortLease renewal runs from a section 25 notice or section 26 request, through negotiation of terms, to a court application that must be issued before the statutory deadline, ending with a new lease whose rent and terms are fixed by sections 33 to 35 if the parties cannot agree.
Key facts
- Trigger
- s.25 notice or s.26 request, 6–12 months ahead
- Information
- s.40 requests, replies within one month
- Court deadline
- Before the termination or commencement date
- Extensions
- Only by written agreement made before the deadline
- New lease starts
- Three months after proceedings finally end (s.64)
The renewal in seven stages
Every protected business lease renewal runs through the same sequence. The dates, not the arguments, decide most outcomes.
Lease started
A business tenancy within Part II of the 1954 Act, unless security of tenure was contracted out at the outset.
Contracting outContractual expiry
The term date in the lease. It does not end a protected tenancy on its own — the statutory machinery has to be used.
Section 24 continuation
The tenancy continues on the same terms after the term date until it is ended under the Act. This is the holding-over period.
Holding overSection 25 / section 26
Either the landlord serves a section 25 notice or the tenant makes a section 26 request, specifying a date six to twelve months ahead.
Calculate the datesNegotiations
Terms, rent and length are argued out, often alongside interim rent. Most renewals settle here rather than in court.
New lease termsCourt deadline
An application must be issued before the date specified in the notice or request, unless extended in writing beforehand. Missing it is usually fatal.
Court applicationNew lease
A renewal on agreed or court-determined terms — or, where the landlord succeeds on a section 30 ground, termination with any compensation due.
Grounds of opposition
Step 1 — Prepare before any notice
Establish whether the tenancy is protected at all: check for a contracting-out notice and declaration, and confirm business occupation. Diarise the contractual expiry date and the six to twelve month window either side of it. Get a rental valuation early, because the rent is usually the real dispute.
Both sides can use section 40 to require information about occupation and interests in the premises. Replies are due within one month, and the duty to correct continues for six months.
Step 2 — Notice or request
The landlord serves a section 25 notice, or the tenant serves a section 26 request. Whoever serves first controls the timetable and, in practice, the valuation date. The notice or request must be in the prescribed form and specify a date between six and twelve months ahead.
Step 3 — Negotiate the terms
Most renewals settle. The negotiation runs over rent under section 34, term length under section 33, and the other lease terms under section 35, where the starting point is the existing lease and the party seeking change must justify it. Consider interim rent at this stage: it can remove the incentive to spin the process out.
Step 4 — Protect the position at court
If terms are not agreed, a claim must be issued before the termination date in the section 25 notice, or before the day before the commencement date in the section 26 request. The deadline can be extended, but only by written agreement made before it expires. Missing it destroys the right to renew.
Unopposed renewals normally proceed in the county court and are usually stayed to allow negotiation to finish. Opposed claims go to trial on the grounds.
Step 5 — The new lease
Where a new tenancy is ordered, section 64 provides that the old tenancy continues until three months after the proceedings are finally disposed of, so the new lease starts then. Interim rent bridges the gap between the old rent and the new one.
Common questions
How long does lease renewal take?
From notice to completion, typically nine to eighteen months. The six to twelve month notice window sets the floor; contested cases that reach trial take longer.
Can the court deadline be extended?
Only by written agreement between the parties, made before the current deadline expires. There is no general judicial discretion to extend after the event.
Do I have to go to court to renew a lease?
No. Most renewals are agreed. Proceedings are usually issued only to protect the deadline while negotiations continue, and are then stayed or discontinued.
The provisions behind this guide
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General information on business lease renewal under Part II of the Landlord and Tenant Act 1954 in England and Wales. It is not legal advice, and deadlines under the Act are unforgiving — take advice on your own notices and dates before acting.