Dallas Texas Commercial Lease Extension
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FAQ
Can the contractual term of a commercial lease be extended? Yes. Subject to satisfying certain criteria, business tenants have a statutory right under the Landlord and Tenant Act 1954 to extend the contractual term of their lease. At the end of the lease, the tenant can ask the landlord for a new lease.
Broadly speaking, the Act provides that a commercial tenant has the right to renew its lease of the premises that it occupies for the purposes of its business.
Actions for landlords when a commercial lease expires For protected leases, a landlord has two months to dispute a tenant's request to renew their lease. During this process, the tenant has the right to remain in the property under the existing lease terms, until the either expiry date arrives or new terms are agreed.
Actions for landlords when a commercial lease expires If a landlord (protected) wants to renew terms or regain possession of their property, they must serve a landlord's Section 25 Notice (S25) in the prescribed form on the tenant within a period of 6 to 12 months before the specified date of termination.
Commercial tenants usually remain in a property when a lease has expired because they are still negotiating the terms of a new, renewed lease with the landlord or they have an informal agreement to stay on.
Unless you or your landlord takes specific steps to end the agreement under the lease, it will simply continue on exactly the same terms. You do not need do anything unless you receive a notice from your landlord.
The landlord's right to refuse Your landlord can refuse to renew your lease if: you're in breach of your obligations (for example, you've not paid your rent) they want to use the premises themselves, for their business, or to live there.
Actions for landlords when a commercial lease expires For protected leases, a landlord has two months to dispute a tenant's request to renew their lease. During this process, the tenant has the right to remain in the property under the existing lease terms, until the either expiry date arrives or new terms are agreed.