Business Premises Q&A Forum

Post: Advice on lease renewal

Q) I rent a warehouse out to a customer who has used it for over nine years. His latest lease ends in July but to take out another will cost him £700. Is it possible to ignore the renewal process?

Answered by Philip Wilkinson, Business Link,

You haven't quite given me all the information I need to help you, but I am going to assume that your previous leases will have been taken out of the 1954 Landlord and Tenants Act. In a procedural exercise, the solicitor acting for you will probably have got a court order to achieve this. In practical terms, this means that at the end of the three years you have been able to get back the tenancy of the warehouse. If you have not obtained a court order, exempting the lease from the Act, the tenant automatically has protection. And so at the end of the three years, your tenant would have been able to insist on staying on and obtaining a new lease.

If you carry on allowing your tenant to occupy the warehouse without a lease, there is a danger that he will be able to get the protection of the 1954 Act. That may not bother you, but it could be a rash decision. Who can see into the future and know with certainty what you want to do with the warehouse. It's much better for you to have the flexibility to regain occupation of the building. Renew the lease for your own protection.


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