The machinery governing the conduct of the lease renewal process is set out under the Landlord and Tenant Act 1954.
Outlined below is a brief resume of the lease renewal procedure.
Landlords Notification to Terminate Tenancy – Section 25 Notice
1. A Section 25 Notice may be served, not less than 6 months, nor more than 12 months before the date of termination specified in it, and not less than 6 months or more than 12 months before the contractual date upon which the lease is to end.
2. If the landlord is not opposing the new tenancy the notice must indicate the landlords proposals as to the property to be comprised in the new tenancy, the rent to be payable and any other terms.
3. The Court application may be made by either a landlord or a tenant and may be made immediately after service of the Section 25 Notice. It must be made before the termination date specified in the notice (unless an extension is agreed in writing between the parties).
Tenants Request for a new Tenancy – Section 26 Request
1. A tenant may request a new tenancy not beginning more than 12 months, nor less than 6 months after the date of the request and not less than 6 months or more than 12 months before the contractual date upon which the lease is to end.
2. The date of the commencement cannot be earlier than the date on which the current tenancy would have come to an end.
3. The Section 26 Request must set out the tenants proposals for the renewal tenancy.
4. When intending to oppose the application for the new tenancy a counter-notice must be served by the landlord within 2 months.
5. The tenant cannot issue a Court application for 2 months, unless the landlord serves a counter-notice opposing renewal.
6. A non-opposing landlord can issue a Court application immediately.
7. The Landlord or Tenant can issue a Court application immediately after a landlord services an opposing counter-notice.
8. The application must be made before the termination date specified in the notice, unless an extension is agreed in writing.
Termination by Tenant – Section 27 Notice
1. A minimum of 3 months notice is required, expiring on the contractual expiry date.
Contracting out of the 1954 Act
1. No court order is now needed.
2. A “health warning” must be served on the tenant before he enters into or becomes contractually bound into the new lease. This explains the rights that the tenant is giving up and it recommends that the tenant seeks independent professional advice.
3. The tenant on 14 days notice signs a declaration to confirm agreement to the lease being unprotected. Where less than 14 days notice is given before the tenant enters into the new lease or becomes contractually bound to do so and the tenant must sign an independent statutory declaration before independent solicitors to confirm their agreement.
4. The lease must contain a reference to the health warning notice as above and the simple declaration or statutory declaration made by the tenant.
Interim Rent
1. Either party may apply, but there can only be one application.
2. Application can be at any time after the service of the Section 25/26 Notice but no later than 6 months after the actual termination of the current tenancy.
There are many pitfalls and traps to be avoided so you need to speak to us at least 18 months in advance of the lease renewal date. The machinery is particularly complicated and the notes above are for guidance only and you should always seek and rely on the advice of your solicitor.