It is commonly misunderstood by both landlords and tenants, and even some estate agents, that if a tenant validly exercises an option under an existing lease by sending a letter or email, then this is all that is required. Unfortunately this is not correct and we have seen many cases when the validity of the previous lease is called into question, and either a landlord or tenant take advantage of any monthly over-holding provisions contained in the existing lease.
Under the Retail Leases Act 2003, the landlord must at least 21 days before the end of the current term of the lease give the tenant a current disclosure statement, and if after the tenant had provided the landlord with notice that he had not received such disclosure statement, the tenant may withhold payment of rent or in some circumstances serve a notice of termination.
It is the landlord’s obligation to notify the tenant of an option to renew and the strict time limits contained in the Retail Leases Act, with detrimental consequences if not followed. We are able to assist with the preparation of the various notices upon receipt of your instructions however we will not diarize any relevant dates which remain the obligation of the landlord and estate agent.
The renewal of lease is prepared as a separate agreement which renews the existing terms and conditions of the existing lease agreement as required, however if new terms or option periods have been agreed upon between the parties, it is preferable that a new lease be prepared.