Commercial Property Lease Renewal


As a law firm specialising in commercial real estate and real estate finance, Newmanor Law brings partner-led expertise to bear on difficult issues such as Distressed Assets. We also operate a one-team approach to provide joined-up solutions based on decades of experience.

Our clients are well-known names in the property market, who value our genuine fixed fees and our commitment to provide smooth transactions which are delivered on time.

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Commercial Property Lease Renewal with Newmanor Law

Put very simply, a commercial lease is an agreement between a tenant and landlord, where the tenant pays rent to occupy a commercial property. The property serves as the tenant's business premises, allowing them to conduct specified business activities.

There is no minimum or maximum term for a commercial lease, however, they tend to be between 1 and 25 years. Most commercial leases are between 1 to 3 years, but those of 25 years (plus) remain common in industrial or warehousing properties.

Perhaps unsurprisingly, long-term leases are often favoured by commercial landlords as it provides security of occupancy, however, this generally results in higher rents for tenants as more stamp duty land tax will be due over the course of the lease.

The specific terms of the lease will be agreed at the outset, with the lease agreement including essential details such as the rental amount, the lease term end date, repair obligations, and alienation clauses.

This document will outline the rights and responsibilities of both the tenant and the commercial landlord. It is not, however, unusual for these pre-agreed terms to be subject to negotiation upon expiry of the lease, should either party wish to renew it.

Lease renewal upon expiration offers both tenants and landlords certain advantages in terms of stability, business continuity, and sustained growth. It is recommended that the lease renewal process is initiated at least 12 months prior to expiration (6months at a minimum), giving ample time to assess the desire to extend the contract and determine the length, or the terms, of the new agreement.

In order to initial a lease renewal, Landlords must serve a 'Section 25' notice, clearly stating any new proposed terms. If a landlord does not wish to renew the lease, they must provide reasons for their decision within the 'Section 25' notice. In some cases, tenants may oppose the new terms offered to them, and if an agreement cannot be reached, the court can intervene to establish fair terms.

On the other hand, tenants wishing to renew the lease must serve a 'Section 26' notice to the landlord. They are themselves legally entitled to propose new terms, and again, the court will intervene if an agreement cannot be reached on the revised terms.

When it comes to renewing a commercial lease, it's crucial to remember that most tenants in the UK are safeguarded by the Landlord and Tenant Act of 1954. This law protects against unannounced business tenant evictions.

When a lease expires, this statute gives business renters certain rights that must be followed under certain conditions. The 1954 Act's provisions prevent a lease from automatically ending even after its expiration date. As an alternative, the act's termination procedures must be followed in order to end the lease.

However, not all tenants will have automatic renewal rights. This is the case if you’ve waived your right to renew at the start of your lease, or you are;

  • a farm business tenant
  • a mining tenant
  • a service tenant employed by the landlord
  • on fixed-term tenancy of 6 months or less

How Can Newmanor Law Help When It's Time to Renew Your Commercial Lease

If you need help from a commercial lease solicitor, Newmanor can help in the following areas:

  • Drafting and serving Section 25 or 26 notices
  • Negotiation of contractual terms
  • Drafting or enacting Break Clauses
  • Granting and managing leases

Why Choose Newmanor for Commercial Lease Renewal

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Real estate focus

Unlike full-service law firms, our service is focussed only on commercial real estate and real estate finance matters. Everything we do and every decision we make is designed to deliver best in class legal expertise for our clients.

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Genuine fixed fees

Our service is based on fixed fees linked to a definitive scope of work. We do not provide estimates that lead to ambush billing on the eve of completion. We do not have time recording targets, just a focus on getting the deal done effectively and efficiently to meet our clients’ requirements.

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Small firm, big team

We are a confident boutique firm with a team of 14 lawyers, including legal assistants, paralegals, associates, partners and consultants. The team we put at your disposal is larger than the real estate and finance teams of most competitor firms.

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Push and tell

We proactively take ownership of your deals. We will push them forward and tell you what we have done and when, so you always know the progress of each deal. Our approach instils confidence that our team is doing everything possible to ensure transactions run smoothly.

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One team, no silos

We work as a team to get things done, ensuring there are no gaps in the service delivered. There is no buck-passing between departments, we own deals and take personal responsibility to see them through to completion.

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We listen

We understand good communication is key. We will always actively seek your feedback and we will action the points you identify. Our team will work closely with you in a collaborative way to ensure you come to regard Newmanor as an extension of your team.

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Genuine client care

Our lawyers understand their careers are defined by the service they deliver to you and your business, not by their ability to bill the life out of you. This requires us to genuinely get to know you and your ambitions, to see how else we help you achieve your outcomes. Your success is our success.

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Excellent service

We ensure every one of our team delivers the best possible client service and this is enshrined in our Service Pledge. This focus on client care saw us shortlisted for the Boutique Law Firm of the Year at the Modern Legal Awards and named as a Firm to Watch in the Legal 500 for Commercial Property and Real Estate Finance.

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Frequently Asked Questions

Ready to do things differently?

If you are ready for a fresh approach to security reviews, reach out to us.

+44 (0)20 7464 4080

enquiries@newmanor.com

32 Threadneedle Street
London EC2R 8AY