Property Lease Renewals
In England and Wales, a lease continues until it is terminated by either a Landlord or Tenant (unless the lease excludes security of tenure).
Fairhurst Estates have a reputation for dealing with lease renewals for clients throughout the UK, resulting in a satisfactory outcome for both Landlords and Tenants.
We manage the full process throughout which typically consists of the following:
- Our Chartered Surveyor will review the lease, agree the fee and liaise with our client’s solicitor
- The premises are inspected & measured in accordance with the RICS Code of Measuring Practice
- A comprehensive Lease Renewal Report is produced including photographs & an OS extract plan a summary of the lease terms and a rental valuation and recommendation.
- We negotiate a fair market rent with the Landlord/Tenant or their agent
- We may take this opportunity to vary the terms of the existing lease, for instance – inserting a break clause or removing potentially onerous lease covenants
- If terms cannot be agreed then the matter will be referred to Court and we can attend as an Expert Witness to defend your case as required.
Information for Tenants
If you are a tenant and the Landlord has served a Section 25 Notice to terminate your lease as soon as possible, it is very important that you take the advice from a Solicitor and a Chartered Surveyor as soon as possible. If terms for a new lease are not negotiated prior to the termination date, then a Tenant may lose their security of tenure and the right to renew the lease. A lease renewal is an important issue for a Tenant as it may be possible to vary the terms of the existing lease (as discussed above.) Alternatively, a tenant may not have heard from the Landlord and would wish to agree to a lease renewal. In this case, a Section 26 notice can be served on the Landlord (ideally from your Solicitor), which will bring the lease to an end; and requesting a new lease.
Information for Landlords
If you are a landlord then it is vitally important to act promptly when your Tenant’s lease is due to expire. In England & Wales, if no action is taken, then an occupational lease will continue after the expiry date (unless it excludes security of tenure). It is therefore vitally important that a Section 25 Notice is served on your Tenant (ideally from your solicitor) in order that the existing lease will come to an end and a lease renewal with a revised rental can be agreed. If you do not wish to grant the Tenant a new lease, then you can object to the granting of a lease renewal on certain grounds, which we can advise upon and these grounds will have to be stated in the Section 25 Notice.