Security of Tenure: Five Questions Landlords and Tenants Should Be Asking Now

1) Is the lease protected by security of tenure, or contracted out? 

A protected lease generally allows a qualifying tenant to remain in occupation and seek a new tenancy when the contractual term ends. A contracted-out lease does not usually give the tenant that statutory right, so both parties should check the lease, warning notice and declaration rather than rely on assumptions. For example, a landlord planning to redevelop may need to know whether statutory renewal procedures apply, while a tenant investing in an expensive fit-out will want to understand whether it has a right to renew the commercial lease. 

2) What do the landlord and tenant want to happen at lease expiry? 

The parties may have very different objectives. A landlord may want a renewal on updated terms or vacant possession for redevelopment, while a tenant may prioritise business continuity, or an orderly relocation. 

3) Is it time for a Section 25 Notice or Section 26 Notice? 

A landlord may use a Section 25 Notice to bring the existing protected tenancy to an end and either propose a new tenancy or oppose renewal. A tenant may use a Section 26 Notice to request a new tenancy. For example, a landlord wishing to start renewal negotiations may serve a non-opposed Section 25 Notice, while a tenant seeking certainty over its future occupation may consider a Section 26 Notice. The choice and timing of notice can affect strategy, so advice should be taken before either party acts.

4) If the lease is renewed, are the proposed terms commercially workable? 

Renewal is not only about whether the tenant can stay; the rent, term and other lease provisions also matter to both sides. A landlord may seek a market rent, appropriate repair obligations and flexibility for future works, while a tenant may seek a break option, a schedule of condition or clearer service charge controls. Where energy improvement works are anticipated, the parties should consider access, disruption, cost recovery and responsibility for compliance rather than simply repeat the old lease wording. 

5) If renewal is opposed, is there a clear legal and practical basis? 

A landlord can refuse to renew a protected lease only if it establishes one or more statutory grounds, and the tenant should test the evidence supporting the stated ground. For example, persistent rent arrears may be relevant to a breach-based ground, while a landlord relying on redevelopment will need a sufficiently developed and genuine scheme. Both parties should consider evidence, timing, business disruption, relocation and possible compensation before deciding whether to negotiate or pursue a contested renewal. 

Security of tenure: frequently asked questions 

What is security of tenure? 

Security of tenure is the statutory protection that allows many business tenants to remain in occupation and seek a new tenancy when their existing lease ends. A landlord may oppose renewal only on grounds set out in the Landlord and Tenant Act 1954. 

Does my business lease have security of tenure? 

It depends on whether the tenancy qualifies under the 1954 Act and whether it was validly contracted out before grant. The lease and contracting-out documents should be checked. In simple terms, the contracted out commercial lease meaning is that the tenant does not normally have a statutory renewal right at the end of the term. 

What is a Section 25 Notice? 

A Section 25 Notice is served by the landlord to end a protected business tenancy in accordance with the 1954 Act. It must state whether the landlord is willing to grant a new tenancy and, if so, propose terms, or whether renewal is opposed and on which statutory grounds. 

What is the difference between a Section 25 and Section 26 Notice? 

A Section 25 Notice is initiated by the landlord, while a Section 26 Notice is initiated by the tenant as a request for a new tenancy. Both form part of the statutory renewal process, but the correct route depends on who acts first and the circumstances of the lease. 

Can a landlord refuse to renew a protected lease? 

Yes, but only if the landlord proves one or more statutory grounds. Examples may include certain tenant breaches, the landlord's intention to occupy the premises or a genuine redevelopment proposal. The outcome depends on the facts and evidence. 

Next reads 

• The Landlord and Tenant Act 1954 Review: What Commercial Property Owners Need to Know

• How Reform of the Landlord and Tenant Act 1954 Could Affect Future Commercial Leases

Commercial lease and renewal advice 

Our Commercial Property team advises landlords, tenants, investors and owner-occupiers across London on new leases, lease renewals, Heads of Terms and rent review drafting. 

If you are negotiating terms now, we can help you assess the practical impact on your proposed lease or renewal. Call 020 8858 6971 or email commercialpropertyenquiries@grantsaw.co.uk to discuss your circumstances. 

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Disclaimer 

This article is for general information only and is not legal advice. Laws and guidance change and outcomes depend on facts. If you need advice on your situation, please contact us. Grant Saw Solicitors LLP is authorised and regulated by the Solicitors Regulation Authority. 

Last updated: 14 September 2026