Commercial Lease With Option To Extend
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FAQ
OPTION TO EXTEND. written notice no earlier than the date which is _______ (__) months prior to the expiration of the term of the Lease but no later than the date which is _______ (__) months prior to the expiration of the term of the Lease.
Your lease automatically renews unless your commercial landlord opposes renewal on limited legal grounds. Nevertheless, most commercial leases nowadays tend to be unprotected leases. If your commercial lease is unprotected, it does not automatically renew when the lease term ends, as you have no legal right to renew.
Note: Difference between option to renew and extend ? where the parties agree to ?extend? the existing lease is continued, where the parties ?renew? this creates a new lease.
As a tenant, if you decide not to exercise your option to renew, your lease will most likely lapse, subject to some exceptions, including for example, in a retail lease situation in circumstances when a landlord has not provided the formal notification of the right to renew also ? even if a tenant misses the cut off ...
To extend a commercial lease, the tenant must serve a formal notice to the landlord, known as a Section 26 notice or a Section 42 notice, depending on the circumstances. The specific notice required will depend on whether the tenant wants a new lease with different terms or wants to continue the existing lease terms.