When serving first helps
In a falling market, a Section 26 request can fix the valuation date earlier and lock in a lower rent. It also forces a decision from a passive landlord and lets you align the new lease with your own capital expenditure or fit-out programme.
When it backfires
The request obliges the landlord to respond within two months if it intends to oppose. If you suspect the landlord has redevelopment plans, prompting that counter-notice may accelerate exactly the outcome you want to avoid. In a rising market, serving first can also crystallise a higher rent sooner.
Formal requirements
The request must be in the prescribed form, propose the terms of the new tenancy including rent, and specify a commencement date between six and twelve months ahead that is not earlier than the contractual expiry. You cannot serve one if the landlord has already served a Section 25 notice.
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
- Section 25 NoticeReceived a Section 25 notice? What it means, the difference between friendly and hostile notices, the deadlines that bind you and how to respond.
- 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.
- Lease Renewal SurveyorTenant-side lease renewal surveyor: 1954 Act renewals, notices, terms and rent negotiated and, where needed, contested through the courts.