Q&As
Can a tenant withdraw a renewal option after ten years?
A tenant exercised an option to renew which required the landlord to grant a new lease on expiry ten years ago. However, the renewal has not yet taken place. Is it possible for the tenant to withdraw its option notice or can the landlord enforce and require the tenant to take a new lease?
For the purposes of this Q&A, we have assumed that the tenant exercised an option to renew requiring the landlord to grant a new lease on expiry of the lease.
Options to renew generally
A contractual option to take a lease for a further term is a ‘call’ option. It confers a unilateral right on the tenant to call for a renewal lease (often subject to Conditions precedent such as all rents being paid up to date and the tenant not being in material breach of covenant). There is no obligation on the tenant to exercise their right, but if they do, the landlord is bound to perform their part of the bargain.
A call option is a contract for the sale of land within section 2 of the
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