Right of Renewal

[sammas]

Hello,
In the event where a commercial tenant has established a Right to Renewal in a building.
What would happen if the tenant did not exercise the Right, Leading to no Renewal?

 

[sammas]

But continued to occupy the building.

 

[The Byre]

1. The doctrine of tacit relocation (i.e. the Roman law principle of automatic renewal of a time-based tenancy contract) only exists in Scotlandshire.

2. If you are in Englandshire, it will all depend on the terms and conditions of the lease or rental agreement.

 

[sammas]

Basic Lease for example no real Bones of contention & there is definite right to renewal but no renewal how does a landlord approach such a situation? @The Byre

 

[sammas]

I am Also 50% shareholder in the company that has the right to renewal in my property @The Byre

 

[The Byre]

Ah! Well, now it's getting funky! This is definitely one for someone who is in full possession of all the facts and has read all the contracts inc. the shareholders' agreement(s). If there is some sort of fall-out between shareholders, then @The Resolver is the chap to talk to.

 

[sammas]

@The Resolver have you any advice please?

 

[rach88]

If a commercial lease benefits from the protection of part II of the Landlord and Tenant Act 1954, and the tenant stays in occupation beyond the lease expiry, but no notices have been served, the lease will be automatically continued on the same terms under s24 of the Act. It is a bit like the way a residential AST automatically rolls over into a statutory periodic tenancy if the tenant stays in occupation after the expiry of the fixed term.

The lease will then continue until it is brought to an end by either a s25 (landlord notice), s26 (tenant requesting new tenancy) or s27 notice (tenant 3 month notice to quit).

 

[White Collar Legal]

Hi

Is the right to renew, a contractual right or a statutory right under the 1954 Act?

Is the commercial lease contracted out of the 1954 Act?

 

[sammas]

Hi guys, the company has not established the right trough a clause in a lease if that is what you are asking.
the company has a right to renewal however the new rent has to reflect the market rate if the tenant is not interested in paying the market rate can the landlord begin to end the lease & for example what complications could arise? @rach88 @White Collar Legal

 

[MOIC]

Get paid for legal advice from a competent legal professional engaged in commercial property.

Asking intermittent questions and getting different replies will only confuse you.

My tuppence worth: If a tenant is not interested in paying the market rate - he negotiates or moves on.

 

[rach88]

The landlord can serve a s25 notice to bring the lease to an end in 6 months' time. If a new lease has not been agreed or a court application made by the date specified in the s25 notice, the lease will come to an end and you would need to leave. But yes, you absolutely should get proper advice from a solicitor specialising in commercial property who has the full facts, can see the lease and can give you advice on your circumstances.

 

[The Resolver]

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@The Resolver have you any advice please?

Only just seen this. Its not my area of law

 

[White Collar Legal]

Landlord and Tenant law is one of the areas of law we do cover.