Commercial Landlord & Tenant Issues

This is a formal notice given by a landlord to a tenant of business premises which brings the current tenancy to an end at a point between six months and one year after the service of the notice. In a Section 25 Notice the landlord will say whether he opposes the grant of a new lease. If he does not, he will also set out the terms on which he would be willing to grant a new lease.

Very often a period of negotiation follows, leading to agreement of the terms of a new lease. However, if agreement is not possible, then the tenant can apply to the Court to order the landlord to grant a new lease. The tenant must commence the Court proceedings before the date specified in the Section 25 Notice for the expiration of the existing tenancy.

In leases of business and commercial premises, it is usual to find clauses which require a tenant on the expiry of the lease to hand back the premises in good condition, having repaired and redecorated. It may be necessary for a tenant to undo changes that he has made, such as removing partitions, and then redecorating etc after this has been done. Landlords can bring claims for payment of dilapidations to cover the cost of doing this work when a tenant has failed to do so.

Our specialist commercial property lawyers can advise on dilapidations claims. One point that landlords often miss is that the amount of dilapidations cannot, by law, exceed the amount by which the market value of the landlord’s interest in the premises is diminished.

A break clause entitles a tenant to give notice to bring a lease to an early end.

Almost invariably a break clause can only be exercised at a specified date and in a specified manner. Break clauses can often include conditions with which a tenant must comply, for example, all his obligations under the lease have been fully complied with at the time of giving the notice.

If you are considering exercising your rights under a break clause then Biscoes specialist commercial property lawyers will be able to advise you.

Landlords often provide services such as cleaning and maintenance of common parts, maintenance and repair of the structure of a building, insurance, etc. Service charges are the means by which tenants reimburse the landlord for this expenditure.