Understanding your leasing options
With the current economic climate, many tenants who are looking to renew their leases are also looking for revised terms to put themselves in a stronger financial position moving forward.
Whilst most lease renewals are governed by the Landlord and Tenant Act 1954, there can still be room for negotiation if both parties are agreeable.
Tenants who are protected by the Act have an automatic right to renew their lease and should therefore serve a statutory notice on their landlord stating their intention to do so. Alternatively, the landlord can also serve notice on the tenant when the term of the lease is coming to an end.
Irrespective of who serves the notice, the tenant should be aware of the time limits placed upon them in agreeing the terms of the new lease to ensure that they do not lose their right to renew.
Once the notice has been served, the parties can then begin the negotiation process of the new terms of the lease.
If a tenant is long-term and has been unproblematic, they may be in a strong position to renegotiate more favourable terms.
This could include a rent-free period or rent reduction, a more frequent break clause or even a revised lease term.
Some tenants may also want to consider trying to negotiate a Covid clause, whereby rent could be reduced or suspended during a further government lockdown.
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