Business Lease Renewal Advice (1954 Act)

Commercial tenants and landlords alike must understand their rights and responsibilities when it comes to renewing a business lease. Under the Landlord and Tenant Act 1954 (the “1954 Act”), most tenants occupying premises for business purposes have a statutory right to request a new lease at the end of the current term. However, the renewal process is governed by strict legal procedures and time limits that can significantly impact both parties. At Stretton Solicitors, we provide expert legal advice on business lease renewals to ensure your interests are protected, whether you’re a landlord looking to regain possession or a tenant seeking to secure your ongoing occupation.

The 1954 Act provides ‘security of tenure’ for most commercial tenants, meaning they have the right to remain in their business premises and request a new lease when the existing one expires. This protection ensures continuity for businesses that rely on location and stability. However, this right is not automatic — tenants must serve the correct notice and negotiate new terms, while landlords may oppose renewal only under limited and specific grounds, such as redevelopment or persistent breaches. Failure to comply with the procedural requirements can result in the loss of important legal protections or rights.

For tenants, the lease renewal process is an opportunity to negotiate better terms — whether on rent, lease length, or break clauses. But timing is critical: tenants must serve a Section 26 notice (requesting a new lease) not more than 12 months and not less than 6 months before the current lease ends. If the landlord initiates the process, they may serve a Section 25 notice proposing new terms or opposing renewal. Understanding the implications of these notices and responding appropriately is essential to avoid losing your tenancy or being locked into unfavourable terms.

Landlords, on the other hand, must carefully evaluate their position before opposing a lease renewal. Grounds for opposition under Section 30 of the 1954 Act are strictly defined and must be proven, such as the landlord intending to occupy the premises themselves or redevelop the property. Incorrectly opposing renewal without valid grounds can lead to legal costs, delays, and potential liability. Our team advises landlords on how to strategically handle renewals, whether they intend to continue the lease, negotiate new terms, or regain possession lawfully.

At Stretton Solicitors, we specialise in guiding both commercial tenants and landlords through the lease renewal process. We help draft and respond to Section 25 and 26 notices, negotiate terms that align with your commercial goals, and represent your interests in court if disputes arise. Our proactive approach ensures that deadlines are met, legal requirements are fulfilled, and your position is protected at every stage. Whether you need to secure your premises for the future or plan for strategic redevelopment, we are here to provide practical and reliable legal support.

If your commercial lease is nearing its end, don’t leave your future to chance. Whether you’re a landlord or a tenant, early legal advice can make a significant difference in protecting your interests and avoiding costly mistakes. Contact Stretton Solicitors today for expert guidance on business lease renewals under the 1954 Act — and let us help you move forward with clarity and confidence.