What happens if a commercial lease has expired?

Landlords or tenants of commercial buildings may find that a commercial lease that they entered into a number of years ago has expired without either party realising. In these circumstances, a new legal arrangement of either a “periodic tenancy” or a “tenancy at will” will have been created.

Can a tenant have a new tenancy after an expired lease?

It will depend on a number of factors, such as acceptance of rent and ongoing negotiations. However, a 2014 case showed that it is difficult for tenants to argue that they should be treated as having a new periodic tenancy when holding over under an expired lease.

Can a holdover tenant stay after the lease expires?

A holdover tenant is a tenant who stays in the rental unit after the lease expires. If the tenant continues to pay rent, the tenancy essentially becomes a month-to-month tenancy. A holdover tenant is legally allowed to stay in the rental unit as long as the landlord takes no action to remove them.

Can a landlord exclude a commercial lease from protection?

As a landlord, you can exclude a commercial lease from protection by ‘contracting out’. A strict procedure must be followed prior to contracting out a lease, but once this has been completed, the tenant is obliged to vacate the commercial premises at the end of the term specified in the lease.

Can a landlord extend a lease after it expires?

If the language of the lease says that after expiration of the original term the parties have the right to extend under the same terms, acceptance of rent by the landlord extends the lease and all its terms including length of tenancy. In such a case no tenancyatwill is created. Speak to an Experienced Landlord Tenant Law Attorney Today

Is there an end date to a periodic tenancy lease?

If you haven’t created periodic tenancy leases, but you purchased an existing rental property, you may have inherited some periodic leases. These leases are made with no fixed term or end date. The contract simply keeps rolling over until either you or your tenant provides adequate notice for vacating the premises.

When do you have to give notice of expiry of periodic lease?

For a periodic tenancy, if rent is paid quarterly then at least three months’ notice will need to be served on the other party, expiring at the end of a quarter, or six months if rent is paid half yearly and so on.

Who is entitled to renew a business lease?

First of all, we’ll review who gets the right to renew a business lease, the landlord, tenant or someone else. According to the Landlord and Tenant Act 1954, occupants of business premises have, by law, the opportunity to stay in the building and they can renew their lease when the term ends.

Can a business landlord terminate a lease early?

There are many reasons why a business tenant may want to terminate a lease agreement prematurely, but whatever the reasons behind the decision there are ways and means of ending a business lease agreement early. Similarly, you should also note that a commercial landlord also has the power to exercise early termination of a business lease.

When does a business lease have to end?

According to the Landlord and Tenant Act 1954, occupants of business premises have, by law, the opportunity to stay in the building and they can renew their lease when the term ends. Irrespective of whether those premises are medical surgeries or shops, factories and warehouses, these rights can be legally enforced by the tenant.

What to do when your lease is about to expire?

Alternatively, the Tenant can serve notice to the Landlord to renew their current lease, this is known as a Section 26 Notice (S26). This notice sets out the proposed terms and, similarly to the S25 Notice, the Tenant has 6 to 12 months prior to the lease expiration date to serve this notice.

When does a commercial lease need to be renewed?

Any commercial building, whether an office, shop or restaurant, requires a commercial lease between the landlord and tenant. If your commercial lease agreement is nearing the end of its agreed term and your tenants wish to remain, it is advisable to be aware of the specific rights of the tenant regarding a renewal.

When does the overholding clause in a lease expire?

A typical overholding clause states that when the term of a commercial lease expires and the tenant continues to occupy the leased premises, the tenancy becomes month-to-month (usually at a higher rental rate.)