Whether you are the landlord or tenant under a retail lease, do you know your rights and obligations when the lease is coming to an end? Unless there is an option to renew for a further period, you should be aware of how the Retail Leases Act 1994 deals with this situation to ensure you are not in breach of the law.
Under section 44 of the Act not less than 6 months and not more than 12 months before the expiry of a lease the landlord must notify the tenant in writing whether a new lease or an extension is being offered along with the terms of the offer or whether no such offer is being proposed.
If the landlord fails to give the required notification (which is often the case) the lease term is automatically extended until 6 months after the landlord gives the notification but only if the tenant requests the extension by written notice before the lease is due to expire.
So, in the case of a tenant who has less than 6 months to go on their lease and who has received no notification from the landlord, that tenant, if they need more time to relocate or consider their options, should request an extension and they will legally be entitled to stay at least a further 6 months after the lease was due to expire.
As for landlords, if they wish to ensure that a tenant does not legally overstay their occupation of the premises by another 6 months, a notification must be sent to the tenant that no new lease or extension will be offered.
November 2021