Q. Do I have to give my business tenant a new lease when his existing lease expires?
A. Unless a business lease has been specifically excluded from the provisions of the Landlord and Tenant Act 1954, a business tenant has the right to be granted a new lease upon similar terms to their existing lease at the end of the existing lease term. There are various grounds under which a landlord can refuse to grant a new lease, which include circumstances where the landlord may wish to utilise the premises for his own business or for redevelopment purposes. The tenant's right to a new lease is strictly governed by the provisions of the 1954 Act and it is essential that both the landlord and tenant obtain legal advice at the time of a lease renewal.

We work closely with our Property Litigation department so that should your rights need protection, or the matter becomes contentious, we have the right expertise to guide and advise you.

Q. I want to sell the lease of my business premises. Will that end my liability under the lease?
A. In most cases you will retain a potential liability in the event that the assignee of your lease defaults during the term of the lease. In most instances, a landlord will insist upon an outgoing tenant completing an Authorised Guarantee Agreement, which has the effect of guaranteeing the performance of the incoming tenant. For this reason, it is essential that you satisfy yourselves as to the financial stability of the incoming tenant.

Q. I am negotiating terms for a new lease of my business premises. Should I look for a long term lease or a short term lease?
A. In most cases this will depend upon the strength and stability of your business. Whilst it is a comfort to know that you have a long lease and will be able to continue your business from those premises for the foreseeable future, you will, of course, retain liability for the obligations of the tenant under the lease throughout the term of that lease and, in some circumstances, it would be better to negotiate terms for a shorter lease, provided that you have the right to renew the lease under the Landlord and Tenant Act 1954.

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