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What happens when the contractual term in a business lease comes to an end?

Clients often ask this question and the answer depends on whether the lease has the benefit of security of tenure provided by the Landlord Tenant Act 1954. This security gives tenants the right to occupy a property when the contractual term comes to an end.

If the lease has security of tenure the tenant can remain in the property after the expiry of the contractual term on the same terms as their current lease, save for rent. The tenant may also require the landlord to grant them a new lease on materially the same terms. In these circumstances, each party would pay their own legal fees associated with the grant of a new lease.

If however security of tenure has been excluded, the tenant must vacate the property by the last day of the contractual term. To remain in the property after this date is trespass. The tenant may agree terms for a new lease with the landlord but the terms will be a matter for negotiation and it is likely the landlord will require their legal fees to be paid by the tenant.

Further advise on this and other commercial property matters please contact Sophie Robins.

Please read Reliance on information posted in our Terms of Website Use - see Legal section - before relying on this commentary.

Before relying on this commentary please read the Reliance on information posted section in our Terms of Website Use in our Legal section. Please note that specialist advice should be taken in relation to any specific queries and the information above is provided for general information purposes only.


Sophie Robins

Commercial Property


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