Author: Syed Raza Mehdi
If you’ve let out a commercial property in the UK and later realise the lease is effectively renewable, it can feel like you’ve lost control. Tenants often believe they can stay indefinitely. Landlords often think they’re stuck.
Neither is correct.
The law, primarily the Landlord and Tenant Act 1954, gives tenants security of tenure, but it also gives landlords structured ways to recover possession. The key is understanding which route applies to your situation and executing it properly.
Syed Raza Mehdi, a solicitor with over 24 years of experience in legal practice, commented,
“In practice, most landlords don’t lose possession because the law is against them; they lose it because they take the wrong step at the wrong time. Commercial tenancy law is highly procedural: a single act, like accepting rent or using the deposit prematurely, can undo an otherwise strong position. The key is not just knowing your rights, but sequencing your actions correctly.”
What “renewable lease” actually means
Most commercial leases in England are protected by the 1954 Act unless they were formally “contracted out.”
This means:
- When the lease term ends, the tenant can stay on (“holding over”)
- The tenant can request a new lease
- You cannot evict arbitrarily
But crucially:
You are not obliged to renew forever. You can refuse, if you follow the correct legal process.
- The two main routes to get possession
Your strategy depends on why you want the property back.
1. The formal route: Section 25 Notice
If the tenancy is protected, the standard route is to serve a Section 25 Notice under the 1954 Act.
If the tenancy is protected, the standard route is to serve a Section 25 Notice under the 1954 Act.
What it does:
- Brings the tenancy to an end
- Allows you to:
- Propose new terms, or
- Oppose renewal entirely
Key features
- Must give 6-12 months notice
- You must state legal grounds if opposing renewal
Grounds you can rely on
The Law sets out specific grounds; the most relevant in practice are:
- Tenant not paying rent properly
- Breach of lease terms
- You intend to occupy the property yourself
- You intend to redevelop
Some of these require you to pay compensation to the tenant; others (like rent arrears) do not.
This is the clean, structured route, but it takes time.
The faster route: Forfeiture (breach-based)
If the tenant is in breach, especially for non-payment of rent, you may be able to terminate the lease immediately using forfeiture. This is grounded in your lease and supported by the Law of Property Act 1925.
When forfeiture applies
Typically, your lease will say something like:
– If rent is unpaid for 7 / 14 / 21 days, the landlord can re-enter
If that condition is met, you can end the lease without waiting months
Two ways to enforce forfeiture
(a) Peaceable re-entry
– Changing locks when the property is empty
-Fast, but risky if done incorrectly
(b) Court proceedings (safer)
– Issue a possession claim (Part 55)
-Court orders the tenant to leave
Most landlords choose the court route for safety.
The biggest mistake landlords make: waiver, this is where many cases fail.
If after the rent becomes overdue you:
– Accept rent
– Agree payment terms
– Act as if the lease continues
You may lose the right to forfeit. This is called waiver of forfeiture.
What about rent deposits and arrears?
Many leases include a rent deposit deed allowing you to withdraw unpaid rent.
While this is legally valid, using it too early can:
– Be treated as accepting rent
– Potentially undermine your right to terminate
If your goal is possession, deal with the tenancy first, money later.
Do you need to send a notice before taking action? It depends on the route:
For forfeiture (rent arrears):
❌ No Section 146 notice required
❌ No pre-action protocol required
For Section 25:
✔️ Formal statutory notice required
In practice, landlords often send a short warning letter before court action, but it is not mandatory.
Choosing the right strategy
| Situation | Best Route |
| Tenant not paying rent | Foreiture (fast) |
| Tenant is not paying rent | Section 25 (planned) |
| You want the property back for future use | Court possession claim |
What happens after you start proceedings?
If you go down the forfeiture route:
-The tenant may apply for relief from forfeiture
-The court can allow them to stay if they:
o Pay arrears
o Act quickly
This doesn’t mean you lose, it just means the court balances fairness.
Practical takeaway
If you’re a landlord dealing with a “renewable” commercial lease:
- You are not stuck indefinitely
- You cannot act arbitrarily, but you can act lawfully
- Your two main tools are:
o Section 25 Notice (structured, slower)
o Forfeiture (fast, breach-based)
Conclusion
The law protects tenants, but it does not trap landlords.
If you:
– Understand your lease
– Choose the correct route
-Avoid technical mistakes
You can regain possession cleanly and legally
If you’re dealing with a live situation, it’s worth getting the sequence right from the start because in commercial property law, small procedural missteps can undo an otherwise strong case.