When a lease is due for expiry under the Landlord and Tenant Act 1954, the lease will continue in a holding over situation until either party brings the lease to end. The Act provides for strict timetables and protocols to undertake this. The landlords can serve a section 25 notice between 6 and 12 months prior to the expiry of the original term or 6 months if the lease is holding over. The section 25 notice will confirm if the landlord is prepared to offer the tenant a new lease and this will include the terms including any rental proposals. The landlord can only terminate the lease on very specific grounds, and if successful may be liable for statutory compensation. The tenant needs to be aware of these specific grounds. 

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A tenant can alternatively serve a section 26 request asking for a new tenancy specifying the new lease terms and the new rental proposal. A tenant should seek professional advice as the notice has the capability of being accepted and they may propose above-market rent. Both the landlord and tenant need to obtain professional advice to negotiate an agreement if this can't be done either party can make an application to the court to apply for a new lease and the courts have the authority to determine the terms for the new lease having regard to case law.

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The court process will be very expensive and very few cases actually end up at a full hearing, lease renewals are most often agreed prior to the court action. If a surveyor is called u to give evidence at court written and verbal there are guidelines laid down by the RICS  on how surveyors need to act and outlines their duty to the court.

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• Explains the need for clear instructions and terms of engagement

• Gives guidance on what to do in situations of conflict of interest

• Outlines the written report format

• Clarifies the differences between the roles of expert and advocate

• Helps remove pressure upon experts to support their clients’ cases irrespective of their honest professional opinion

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