General

Serving a Section 25 notice in commercial property is an important step in renewing your lease

Our Managing Director, Richard Sutton, says there are 7 steps to consider when serving a Section 25 notice:

1. Understand the lease renewal process: Familiarise yourself with the specific rules and procedures for lease renewal in your lease. It’s essential to know the statutory time frames and requirements to ensure your notice is valid.

2. Professional advice: Lease renewals can be complex, involving legal and financial considerations. It’s advisable to seek professional advice from a commercial property solicitor or surveyor who specialises in lease renewals. They can guide you through the process and help protect your interests.

3. Timing is everything!: A Section 25 notice must be served within specific time limits, usually between 6 and 12 months before the end of the lease. Plan ahead to avoid missing this deadline. Failing to serve the notice on time can have significant consequences.

4. Prepare the notice: Draft the Section 25 notice accurately and comprehensively. Include details such as the landlord and tenant’s names, the property address, the expiry date of the current lease, and the proposed terms for the new lease. We usually liaise with your solicitor on this point and on serving the notice, they are best placed to do both.

5. Serve the notice correctly: Serve the Section 25 notice to the tenant in the appropriate way, as specified by the governing legislation or lease agreement. Common methods include personal delivery, registered mail, or a process server. Keep evidence of service, such as a receipt or affidavit, as proof should it be needed.

6. Consider negotiations: After receiving the Section 25 notice, the tenant has the opportunity to respond and negotiate the terms of renewal. Stay open to discussions and be prepared to come to a negotiated settlement.

7. Keep records: Maintain thorough documentation of all communications, including the Section 25 notice, any responses, negotiation offers, and counteroffers from both parties. These records will be valuable in case of any disputes or legal proceedings.

Remember, this is only a general guide, it’s always best to employ the services of an experienced surveyor and solicitor. Get in touch with us for more information and advice.