Lease renewal tips for occupiers

  1. Start the process 18 months prior to your lease expiry.
  2. Get professional advice from a surveyor and a solicitor that specialise in leasehold negotiation before you go any further.
  3. Read, understand and ensure you (or your surveyor) comply with the RICS code for leasing business premises 2019 (Link)
  4. Establish whether you qualify for “1954 Act” protection.
  5. Ensure that your current property matches your business needs for the renewal period you are considering.
  6. Search for alternative premises so that you have options.
  7. Establish the market rent for your property and compare it to your options.
  8. Consider exit costs, costs of moving, and the landlords requirements and their costs of you not renewing.
  9. Consider a reversionary lease, a surrender and regrant, a lease extension as alternatives to a renewal.
  10. Use the template Heads of Terms contained in the above RICS code to put non binding proposal terms to your landlord (and the landlord of  your options) well in advance of the expiry.  You suggest terms that work for you.

lease renewal tips from Mcneil commercial