When a commercial office lease nears its end, renewing it is rarely automatic, but business tenants in England and Wales often have strong rights to a new lease, provided the right steps and strict deadlines are met. Here is how lease renewal works, and how to protect your position.
First, check if you have security of tenure
The key question is whether your lease is protected by the Landlord and Tenant Act 1954, Part II. Most business tenancies are, unless the lease was validly "contracted out" of the Act before it was granted (which requires a specific warning notice and declaration).
- If you have 1954 Act protection, your tenancy does not simply end on the contractual expiry date. It continues until ended in the statutory way, and you have a right to a new lease unless the landlord can establish a statutory ground to refuse.
- If your lease was contracted out, you have no automatic right to renew, you must negotiate a new lease, and the landlord can simply ask you to leave at the end.
The statutory notices (and their deadlines)
Where the 1954 Act applies, renewal is started by one of two notices:
- Landlord's section 25 notice, the landlord serves notice to end the tenancy, either proposing a new lease (friendly) or opposing renewal on a statutory ground (hostile).
- Tenant's section 26 request, the tenant requests a new tenancy, setting out proposed terms.
Both have strict timing rules (generally served between 6 and 12 months before the proposed date), and missing or mishandling them can be costly. Take advice early. Critically, where renewal terms are not agreed, the tenant should normally issue court proceedings before the termination or request date in the notice (or ensure a valid statutory extension is agreed and documented in time). Failing to do so may mean the right to a new tenancy is lost, even where a section 26 request has been made.
Can the landlord refuse?
A landlord can only oppose renewal on the statutory grounds in section 30, for example, persistent rent arrears or breaches, suitable alternative accommodation, or the landlord's genuine intention to redevelop the premises or occupy them itself. Some grounds entitle the tenant to compensation.
Terms and rent of the new lease
If renewal is agreed (or ordered by the court), the new lease terms (including the rent) are negotiated, or determined by the court if the parties cannot agree, usually by reference to market rent. A RICS-qualified surveyor can advise on valuation. While renewal is in progress, an interim rent may be payable.
Contractual options to renew
Separately, some leases contain a contractual option to renew. If you have one, exercise it exactly as the lease requires (timing, form, and any conditions such as rent being up to date), or it may fail.
Practical guidance
- Check whether your lease is protected or contracted out, this changes everything.
- Diarise the renewal window well in advance; the notice deadlines are unforgiving.
- Take professional advice (legal and surveying) early, and on rent valuation.
- Start negotiating in good time rather than waiting for expiry.
Key takeaways
- Many business tenancies have security of tenure under the Landlord and Tenant Act 1954, Part II, unless contracted out.
- Renewal is triggered by a landlord's section 25 notice or a tenant's section 26 request, with strict deadlines.
- Landlords can refuse only on statutory grounds (e.g. redevelopment or own occupation), sometimes with compensation.
- A separate contractual option to renew must be operated exactly as drafted.
Sources
- Landlord and Tenant Act 1954, Part II (security of tenure; sections 25, 26 and 30; contracting out)
- The role of market-rent valuation and interim rent on renewal
--- This article is general information about the law of England & Wales as at 2026, not legal advice. For advice on your circumstances, consult a qualified solicitor or surveyor.