Business lease renewal—renewal by agreement under section 28
Business lease renewal—renewal by agreement under section 28

The following Property Disputes guidance note provides comprehensive and up to date legal information covering:

  • Business lease renewal—renewal by agreement under section 28
  • Agreement for a future tenancy
  • Agreement must be enforceable
  • Options to renew

Agreement for a future tenancy

Where the landlord and tenant agree for the grant to the tenant of:

  1. a future tenancy of the holding, or of the holding with other land

  2. on terms, and

  3. from a date specified in the agreement

the current tenancy continues until that date but no longer, and is not a tenancy to which the statutory protection applies.

Agreement must be enforceable

The protection of Part II falls away where the landlord and tenant have entered into an enforceable agreement for a future tenancy. S 69(2) provides that the agreement must be in writing. It must also meet the statutory formalities for a land contract, and so must:

  1. contain or incorporate all of the terms expressly agreed by the parties, and

  2. be signed by or on behalf of the parties

A purported agreement headed subject to lease may be considered void.

The 60 year rule

Any contract for the renewal of a lease for a term exceeding 60 years from the termination date of the original lease is void. However, the extent of any exceptions to this statutory provision, and thus its scope, is unclear. There are no reported cases on it.

Options to renew

On the basis of existing authorities, Part II of the Landlord and Tenant Act 1954 ceases to apply to a tenancy