“The lease on our commercial premises is coming to its end and I am afraid that I will not be able to get another one, what can I do?“
The Landlord and Tenant Act 1954 governs the rights and obligations of landlords and tenants of premises which are occupied for business purposes. Where applicable the Act guarantees that the tenants have the right to:
Stay in the premises at the end of their tenancy; and
To also apply for a new lease to be granted.
As such, it is very likely that you can not only stay in the premises, but also apply for another tenancy should you wish. The landlord can only object to a new lease for very limited reasons, including:
Where you have a history of not complying with the lease obligations, such as failing to repair the premises and/ or non-payment of rent, or;
Where the landlord provides alternative suitable premises
Where premises have been split up by subletting into a number of units and the whole premises would command a higher rent if let together under one lease.
Where the landlord intends to demolish and reconstruct the premises or
Where the landlord requires the property back in order to occupy it themselves, or for development purposes,
In most cases, lease renewals are relatively straight forward and conducted against the background of these statutory rights without any need to apply to the courts.
Where a landlord does object to the renewal, you may be entitled to compensation as a result. You may even be able to challenge the refusal through the courts.
Where you wish to apply for a new lease, or simply wish to challenge a refusal, there are strict deadlines that need to be adhered to. Also, please note that the Act can be excluded if it is done correctly and should you find yourself in this situation, it is very important that you seek professional advice at an early opportunity. As an RMI member you have access to the RMI Legal advice line, as well as a number of industry experts for your assistance.
Should you find yourself in the situation above, contact us at any stage for advice and assistance as appropriate.
Motor Industry Legal Services
Motor Industry Legal Services (MILS Solicitors) provides fully comprehensive legal advice and representation to UK motor retailers for one annual fee. It is the only law firm in the UK which specialises in motor law and motor trade law. MILS currently advises over 1,000 individual businesses within the sector as well as the Retail Motor Industry Federation (RMI) and its members.