Guide

Business leases: renewing and ending

Tenant's right to renew a business lease

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.