If your business lease is protected under Part II of the Landlord and Tenant Act 1954, it does not normally end simply because the contractual term expires. The tenancy continues until it is terminated in accordance with the Act, and the tenant has a statutory right to seek a new tenancy unless the landlord successfully relies on one or more statutory grounds for opposition.
One of the most important deadlines is the court application deadline. Following a section 25 notice, the statutory period normally ends on the termination date specified in that notice. Following a section 26 request, it ends immediately before the proposed commencement date in the request. If no court application is made by the applicable deadline and no valid extension has been agreed, the tenant can lose the statutory right to a renewal.
Are you actually protected?
Check the lease first. Commercial leases can be contracted out of sections 24 to 28 of the Act under the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003.
For contracting out to be effective, the landlord must serve the prescribed warning notice before the tenant enters into the lease or becomes contractually bound. If the notice is served at least 14 days beforehand, the tenant can make a simple declaration. If that 14-day period is not available, the tenant must make a statutory declaration before an independent solicitor or another person authorised to administer oaths. The lease must also contain the required reference to the exclusion agreement.
If those formalities were not followed correctly, the intended exclusion may be ineffective. The full Landlord and Tenant Act 1954 sets out the statutory framework, and our commercial lease solicitors in London can review the lease and contracting-out documents.
The tenant must also normally occupy at least part of the premises for the purposes of its business. Vacating completely or subletting the whole may therefore affect protection, although particular corporate and occupation arrangements need individual consideration.
The notices and the timings
| Notice or step | Who uses it | Timing | Effect |
|---|---|---|---|
| Section 25 notice | Landlord | Termination date must generally be 6–12 months after service and cannot be earlier than the contractual expiry date | Terminates the current tenancy and states whether renewal is opposed |
| Section 26 request | Tenant | Proposed new tenancy must generally begin 6–12 months after the request and not before the contractual tenancy could end | Requests a new tenancy and proposes its terms |
| Section 27 notice | Tenant | Different rules apply before and after contractual expiry; a continuation tenancy can generally be ended on at least 3 months’ written notice | Allows the tenant to bring protected occupation to an end without renewal |
| Court application | Landlord or tenant | Before the statutory period or a valid extended period expires | Preserves the court’s ability to determine renewal or termination |
| Interim rent application | Landlord or tenant | Available following a section 25 notice or section 26 request, subject to the statutory rules | Allows the court to determine rent for the relevant continuation period |
A landlord serving a section 25 notice must state whether it opposes the grant of a new tenancy. If it does, the notice must identify the section 30 grounds relied upon.
A tenant cannot serve a section 26 request after the landlord has already served a section 25 notice. Likewise, once a valid section 26 request has been made, the landlord cannot subsequently serve a section 25 notice for the same renewal process.
The court deadline can be extended under section 29B. The agreement must be made before the current statutory or previously extended period expires, must specify a later end date and should be clearly recorded in writing. Further extensions can also be agreed before the existing extension expires.
A situation worth understanding
Suppose a café receives an unopposed section 25 notice and spends months negotiating rent and lease terms. Both sides expect to complete a renewal, so nobody issues proceedings. If the section 25 termination date passes without a court application or a valid section 29B extension, the tenant cannot assume that ongoing negotiations preserve its statutory renewal rights.
The safer approach is to diary the statutory date separately from the commercial negotiation timetable and document every extension before the deadline. The same discipline behind building an evidence file that stands up in court applies here: dates and correspondence matter.
When your landlord opposes renewal
Section 30 contains seven statutory grounds on which a landlord may oppose a new tenancy. Grounds frequently encountered include ground (f), where the landlord intends qualifying reconstruction or redevelopment, and ground (g), where the landlord intends to occupy the premises for its own business or residence.
Grounds (a), (b) and (c) concern matters including the tenant’s failure to repair, persistent delay in paying rent and other substantial breaches of tenancy obligations. An arrears history can therefore be relevant. Our guide to documenting arrears properly explains the value of good records, while managing disrepair counterclaims considers disputed property-condition evidence. For separate residential disrepair issues within a wider property portfolio, see our housing disrepair solicitors in London.
Where renewal is refused solely on qualifying non-fault grounds under section 30(1)(e), (f) or (g), statutory compensation may be payable. The normal amount is one times the relevant rateable value. It can increase to twice the rateable value where the premises have been in qualifying business occupation throughout the 14 years immediately before termination, including qualifying succession to the same business.
Disputes about renewal and lease terms are generally dealt with in the county court. Our overview of how civil claims are allocated between tracks gives wider procedural background, while recent court and tribunal fee changes provides additional costs context.
Reform is progressing
The Law Commission published its second consultation paper on business tenancy renewal on 16 June 2026, with responses due by 16 September 2026. It has provisionally concluded that the existing contracting-out model should remain, while proposing to increase the short fixed-term exclusion threshold from six months to two years and consulting on excluding most periodic tenancies from the Act. It is also examining ways to simplify the contracting-out and renewal procedures. These remain proposals rather than changes to the existing security-of-tenure regime.
You can follow developments through the Law Commission’s business tenancies project.
Separately, the English Devolution and Community Empowerment Act 2026 received Royal Assent on 29 April 2026 and contains provisions banning upwards-only rent review mechanisms in relevant new and renewal commercial leases. Those Part 5 provisions require commencement by regulations rather than taking effect automatically on Royal Assent, so renewal terms should be checked against the commencement position at the time the new lease is agreed.
Residential tenancies operate under a different regime, including the reforms covered in our plain English timeline of the Renters’ Rights reforms.
Frequently asked questions
How much notice does a landlord have to give to end a protected business tenancy?
A section 25 notice normally specifies a termination date between six and twelve months after service. For a fixed-term tenancy, that date cannot normally be earlier than the date on which the tenancy would otherwise expire.
Do tenants still have to serve a counter-notice to a section 25 notice?
No. The previous tenant counter-notice requirement was abolished as part of the 2003 reforms that came into force in 2004. What remains critical is ensuring that any necessary court application is made within the statutory or validly extended period.
Can a landlord increase the rent on renewal?
Yes. Under section 34, where the court determines the rent, it generally considers the open-market rent for the premises on the statutory assumptions and disregards matters including the tenant’s occupation, goodwill attributable to that occupation and certain qualifying tenant improvements.
What happens if you stay in occupation after the lease expires?
If the tenancy is protected, section 24 normally continues it after contractual expiry until it is properly terminated under the Act. The existing lease terms generally continue in the meantime, although an interim rent may become payable following a section 25 notice or section 26 request.
Diary the deadline, then get the lease reviewed
If your lease is approaching expiry, check whether it is protected, whether any notice has already been served and exactly when the statutory deadline expires. Do not assume ongoing negotiations protect the right to renew.
Directors dealing with property following a death can also speak to our probate solicitors in London, while residential portfolio matters are covered by our landlord and tenant eviction services.
Speak to our solicitors in North London on 020 3581 9293 or email info@atalawsolicitors.com.