Commercial leases: plan the renewal early
A request to renew a commercial lease follows a strict timetable. A letter sent too late can cost you the premises.
Your business has been at the same address for years and the lease expires in two years. Now is the time to act.
A narrow window
A tenant who wants to renew must ask the landlord within a specific period: between the eighteenth and the fifteenth month before the lease expires. Earlier is too soon; later, the right to renewal is lost.
A prescribed form
The request is made by bailiff’s writ or registered letter. It must state the proposed terms and reproduce certain statutory wording, failing which it is void.
The landlord’s reply
The landlord has three months to reply. Silence counts as acceptance of the proposed terms. The landlord may also refuse, on limited grounds, or propose different terms.
Our advice
Enter the expiry date in your diary as soon as you sign the lease, with a reminder two years ahead. And have the request reviewed before it is sent: one missing statement is enough to deprive it of effect.