Protect the terms, not just the number
A rent reduction bought with a longer unbroken term, a full repairing liability or an uncapped service charge is often a poor trade. I model the total occupancy cost across the proposed term before agreeing any headline figure.
- Term length and tenant break options
- Repairing standard and any schedule of condition
- Service charge caps and exclusions
- Assignment and underletting flexibility
- Rent free and landlord contributions on renewal
Statutory route or open negotiation
Where the tenancy is protected by the Landlord and Tenant Act 1954, the statutory machinery gives real leverage: the right to remain in occupation, the right to apply to court, and interim rent. Where the tenancy is contracted out, the negotiation is purely commercial and the relocation option becomes your strongest card.
Timing
Renewals should be started twelve months out. Late instruction narrows the options: you lose the credible threat of relocation, the ability to run a parallel search, and often the chance to serve first.
Common questions
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Chris McGarrigle MRICS, chartered since 1989, acting for occupiers across England, Scotland, Northern Ireland and Ireland.
chris@mcgarrigle.comRelated guides
- Commercial Lease RenewalHow commercial lease renewal works for business tenants: protected and contracted-out tenancies, notices, new rent, new terms and interim rent.
- Landlord and Tenant Act 1954 Lease RenewalPart II of the Landlord and Tenant Act 1954 explained for business tenants: security of tenure, Sections 25, 26 and 30, interim rent and compensation.
- Retail Lease RenewalRetail lease renewal advice for shop, leisure and F&B tenants: rent, term, break rights, service charge and portfolio strategy on the high street.
