Business tenants normally have the right to remain in their premises and renew their leases when their tenancy agreement ends. Examples of premises where these rights may apply include:
- shops, warehouses and factories
- offices containing businesses, professional people and volunteer societies
- doctors' and dentists' surgeries
- premises for clubs, trade unions, institutions and other bodies
- premises used partly for business, but where the tenant lives in the remaining areas
Who doesn't have the right to renew a lease?
However, some types of business occupiers do not have the right to renew a commercial lease including:
- farm business tenants
- mining tenants
- 'service tenants' employed by the landlord
Also, business lease renewal rights do not generally apply in the following circumstances:
- fixed-term tenancies of six months or less
- tenants who waive their right to renew at the start of their lease
- tenants using the premises for business without the landlord's agreement
- where there is a licence rather than a lease
- where tenants have already extended long leases and, in certain cases, their sub-tenants
- tenants who have sub-let the premises and who are not occupying them personally
The landlord may also oppose renewal of a business lease in certain defined cases – see the landlord's right to refuse a new tenancy.
You may want to consult a legal professional on the issue of business leases. Choose a solicitor for your business.