The Landlord and Tenant Act 1954 is a major piece of legislation in the field of commercial property. It was enacted to provide much needed stability for business tenants and means that they have the right to renew a lease as it comes to an end automatically under certain conditions. In the years that followed the Second World War there was an acute shortage of business premises so landlords were able to dominate negotiations with their tenants as leases approached their expiry. Parliament stepped in in 1954 to redress the balance so that commercial tenants were given the automatic right to continue to occupy.

We can help you

A firm of solicitors in Leeds, like Winston Solicitors, with a dedicated commercial property department can help navigate this situation you whether you are a landlord or a tenant.

Establishing right to renew

A commercial property solicitor will be able to tell you if you or your tenant has the right to renew. Generally, business tenants qualify but there are a few notable exceptions, such as when the original lease was for 6 months or less and the tenant’s occupation has not extended past 12 months. For a full list of exclusions, it’s best to get in touch with a legal professional.

If you are a landlord and you do not wish to renew the lease, you may have grounds for refusal based on certain criteria. These include:

• breach of tenant’s obligations;
• you find the tenant alternative accommodation;
• you wish to consolidate a property that is divided into separate sections;
• if you want to demolish or rebuild the property, unless an arrangement is made with the tenant allowing you to carry out the work while they are in residence;
• if you decide you wish to live or work in the premises yourself.

If you think you may wish to end a tenancy at the end of the lease term, it is very important that you take legal advice as soon as possible to ensure that you qualify for the grounds on which you will be relying. Contact Winston Solicitors by completing our contact form or calling 0113 218 5427. We are commercial lease solicitors in Leeds and can advise you on your options and take any action that might be required. Specific actions need to be taken depending on your circumstances and, if they are not in place for the end of the lease term, the lease will continue until appropriate action is taken.

Is there a way of excluding a commercial tenant’s rights to a renewal lease?

You can build a clause into the original lease that excludes the automatic renewal rights provided by the Landlord and Tenant Act 1954 if you consult a solicitor before you begin. It is not a particularly difficult process but it has to be done exactly right and does need a commercial property solicitor to do it correctly. This is known as “contracting out”

Ending the tenancy

The tenancy may be ended under one of the circumstances noted above or by mutual agreement between the landlord and tenant.

For further information call Winston Solicitors on 0113 320 5000 or email info@winstonsolicitors.co.uk.

Whether you are a start up business unfamiliar with leases and require help from an early stage of the negotiations, an expanding business which has already agreed heads of terms and wants to take early occupation to maximise its commercial advantage or a landlord wanting to secure the best possible lease from a tenant to protect the value of your investment, we are here to help. We provide pragmatic, cost effective legal advice on:

1. Preparation and negotiation of new leases
2. Lease renewals
3. Assignments of existing leases
4. Obtaining landlords consent for alterations, assignment and subletting
5. Terminating leases and exercising break clauses
6. Lease surrenders
7. Repairing obligations
8. Rent review
9. Service charges
10. Serviced office accommodation
11. Shop Leases
12. Office Leases
13. Industrial Unit Leases
14. Tenancies at will / licences to occupy
15. Sale and leaseback arrangements
16. Lease extensions
    • Please note that we only deal with lease extensions where terms have been agreed (sometimes referred to as voluntary or informal lease extensions).
    • We do not deal with the negotiation of premiums, the service of Section 42 Notices or the statutory procedure. Certain lenders will only accept statutory lease extensions.

We have advised numerous commercial landlords and tenants in the retail, office, industrial and leisure sectors and are specialists dedicated to providing the best possible legal advice to you and your business at affordable prices.

You can also check out what other services we offer at our Leeds solicitors.

If you are buying or selling freehold or leasehold business premises, whether for occupation by your own business or as an investment to let out on lease, it is essential that it is handled by an expert you can trust so as to minimise risk, and maximise the opportunity for your business. We have acted for numerous large and small businesses over the years when they have bought or sold their premises, whether that is as part of the sale of the business, a business move or as part of an expansion strategy.

We have experience in:

1. Freehold and leasehold sales and purchases for occupation
2. Preparation and review of auction sale packs
3. Doctors’, dental and veterinary surgeries, opticians and other health care professional premises
4. Childrens’ day care nurseries and care homes
5. Hairdressing and beauty salons, hot food takeaways and restaurants, hotels, pubs and social clubs (but not licensing law)
6. Shops
7. Offices
8. Industrial buildings

Our expertise across the wide range of services we provide and our commitment to delivering an efficient and cost-effective solution to our clients’ commercial conveyancing needs means you can trust us to get the job done on time and on budget, leaving you to do what you do best – run your business!

Check out our other services that we offer at our Leeds solicitors.

When starting a new business you will be faced with a number of decisions or matters which will require attention:

• who will provide accounting and tax advice
• what you will need from your bank or other lender
• are you intending to be in business with someone else – if so, on what basis
• the premises you need for the business
• how do you market or advertise
• the product – do you own all the rights in the product
• health and safety
• employees
• who are your customers?  If you sell business to business or to consumers – the rules can be different
• is your website compliant with the Privacy and Electronic Communications Regulations
• registration under the GDPR
• will you provide credit to your customers
• insurance

We see businesses of all shapes and sizes and are experienced in working with the managers of those businesses to see how their commercial, financial or personal objectives may be achieved.  This requires early access to any proposed plan so that we can assist, for example, in ensuring that issues the client may not have considered are dealt with at an early stage of negotiation. It will also ensure that the elements that go to make up a business plan or material change in the business are drawn together and do not overlap or conflict.

Such planning will often require changes to employee numbers or a need to re-train or re-allocate staff.  These are sensitive issues with which we can help and advise.

Succession planning is also a difficult area to deal with, especially in family owned businesses.  There will never be a standard solution to these matters, but we have a wide range of experience which enables us to suggest solutions which help in avoiding unnecessary problems.

Thinking of investing in a Franchise?

Speak to James Stephenson who has been advising clients on Franchise Agreements for many years.  Whether you are a Franchisee or a Franchisor, he can guide you through the intricacies of the agreement, that could form the basis of your livelihood for many years to come.

Call 0113 320 5000 today for a free no obligation chat, or email js@winstonsolicitors.co.uk

YOUR QUESTIONS ANSWERED

What is a Franchise Agreement?

Although it can take a number of different forms, a franchise is usually the grant of a licence by a franchisor to a franchisee for the franchisee to trade their own business under the brand of the franchisor.

What is the benefit of a Franchise Arrangement?

The franchisor should have a proven business model and provide the franchisor with a package of business tools to enable the franchisee to hit the ground running and not having to re-invent the wheel. This should enable the franchisee to:

• be up and running sooner than starting a business from scratch
• reduce lead times and thus reduce working capital and improve cash flow
• reduce risk
• improve the chance of funding
• benefit from the franchisor’s marketing and advertising
• have access to the franchisor’s market and business knowledge.

Why would a Franchisor want to Franchise their business?

The advantages from the franchisor’s point of view can be:

• to establish its name and reputation more quickly and with a faster geographical spread
• that the franchisees will provide funding for their own businesses and reduce funding the cost of expansion for the franchisor
• to improve purchasing power.

What are the issues you need to consider as either the Franchisee or Franchisor?

For both franchisor and franchisee there will be issues which affect each differently, for example:

• control – to what extent can the franchisor impose control over the franchisee and how that franchisee runs its own business
• IP rights and confidentiality – the franchisor will need to protect its methods and operations
• initial and ongoing support and training – the franchisee will typically be looking for these elements to make up for its own lack of knowledge and experience. The provision of support and training will often be a new skill which the franchisor will have to acquire
• the initial price and terms of payment
• how long will the licence last and what will be the terms of renewal
• can the franchisee sell his business and, if so, on what terms
• maintenance of quality
• territory
• what royalties or other payments are required from the franchisee and how they are calculated
• marketing
• stock and stock control
• how will the agreement be terminated if it is not working, what will be the consequences of termination and will the franchisor wish to restrict the franchisee from competing if the agreement is terminated. Franchising can bring significant benefits to both parties if done right.

If you are thinking of becoming a franchisee or setting up a franchise, contact James Stephenson on 0113 320 5000 for a no obligation chat