TRW & Co · Real Estate & Construction
Landlord and Tenant Solicitors in London
Landlord and tenant solicitors London businesses instruct advise on commercial leases from grant to exit: negotiating terms, consents to assign or alter, rent arrears, 1954 Act renewals, break clauses, dilapidations and forfeiture. With an upwards-only rent review ban on the statute book and the 1954 Act under review, leases signed in 2026 need drafting that anticipates the new rules.
Key pointMost 1954 Act disputes are won or lost on procedure, not merits: a section 25 notice served on the wrong entity, a missed court deadline or contracting-out paperwork completed after the tenant was bound can reverse the commercial outcome entirely.
At a glance
Section 25 notice window
A landlord's section 25 notice must be given not more than twelve nor less than six months before the termination date it specifies.
Seven grounds of opposition
A landlord can only oppose a new lease on the grounds in section 30(1) of the 1954 Act, including redevelopment and own occupation.
CRAR arrears threshold
Commercial Rent Arrears Recovery needs a written lease of commercial premises and net unpaid rent of at least seven days' rent.
Dilapidations Protocol timings
Landlords should generally serve a schedule and quantified demand within 56 days after termination; tenants usually respond within 56 days of the demand.
Upwards-only ban pending
The English Devolution and Community Empowerment Act 2026 will ban upwards-only reviews in new business leases once regulations commence it.
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What landlord and tenant solicitors London businesses instruct deal with
Landlord and tenant solicitors London property owners and occupiers instruct advise on the full life of a commercial lease: negotiating the grant, managing the relationship during the term, and handling renewal, exit and disputes at the end. The law is a mix of statute, case law and the lease itself, and small drafting choices can carry large costs years later.
This page focuses on business tenancies in England and Wales: offices, shops, restaurants, industrial units, warehouses and mixed-use premises. Residential tenancies sit under a different statutory regime, which changed substantially in 2026, and we cover them through our residential property team.
Most landlord and tenant questions fall into a few categories: what the lease allows (assignment, subletting, alterations, use), what each side must pay (rent, service charge, insurance, repair), how the lease can end (break, expiry, forfeiture, surrender) and whether the tenant has a statutory right to a new lease. Each has a statutory overlay that the lease cannot always override.
The statutory framework for business leases
Commercial leases in England and Wales are governed by the lease terms and by a set of statutes that landlord and tenant solicitors London clients rely on daily. Scotland has no equivalent of the 1954 Act security-of-tenure regime, and Northern Ireland has its own Business Tenancies Order, so cross-UK portfolios need separate advice.
Landlord and Tenant Act 1954, Part II
Part II of the Landlord and Tenant Act 1954 gives business tenants who occupy for business purposes a right to remain at the end of the contractual term and to apply for a new lease. The tenancy continues automatically until ended under the Act.
A landlord ends it with a section 25 notice, which must be given not more than twelve nor less than six months before the termination date it specifies. A tenant can start the process with a section 26 request. Either side can apply to court for a new lease or, in the landlord's case, for termination on a statutory ground.
Contracting out
Parties can agree that the security-of-tenure provisions will not apply. Under section 38A and its schedules, the landlord must serve a warning notice and the tenant must make a declaration (simple or statutory, depending on timing) before the tenant is contractually bound. The lease must then refer to the procedure.
Other key statutes
- Landlord and Tenant (Covenants) Act 1995: for leases granted on or after 1 January 1996, a tenant is generally released on lawful assignment, and the landlord may require an authorised guarantee agreement (AGA) from the outgoing tenant.
- Landlord and Tenant Act 1988: where consent to assign or sublet is not to be unreasonably withheld, the landlord must respond within a reasonable time and give written reasons for any refusal or conditions.
- Landlord and Tenant Act 1927, section 18(1): caps damages for disrepair at the diminution in the value of the landlord's reversion, and excludes damages where the premises will be demolished or structurally altered.
- Law of Property Act 1925, section 146: requires a notice before a landlord can forfeit for breaches other than non-payment of rent, giving the tenant a chance to remedy.
- Tribunals, Courts and Enforcement Act 2007, Part 3: created Commercial Rent Arrears Recovery (CRAR), the only way to take control of a tenant's goods for rent arrears.
Alongside statute, the RICS Code for Leasing Business Premises sets mandatory standards for RICS members negotiating leases in England and Wales, including information to be given to prospective tenants about the 1954 Act and service charges.
Reforms landlords and tenants must plan for in 2026
Commercial leasing is in the middle of its most significant reform for decades. None of these changes is yet fully in force, but leases granted now will run into them.
- Upwards-only rent reviews: the English Devolution and Community Empowerment Act 2026 (Royal Assent 29 April 2026) inserts new rent review schedules into the 1954 Act. Once commenced by regulations, it will stop upwards-only reviews in new and renewal business leases. See our note on the upward-only rent review ban.
- 1954 Act review: the Law Commission's second consultation closed on 16 September 2026. Provisional proposals include a single, simpler contracting-out procedure and extending the redevelopment ground to cover retrofit works. Our article on 1954 Act reform tracks progress.
- Energy performance: the government announced in June 2026 that non-domestic buildings over 1,000 square metres should reach EPC B from 2031, subject to secondary legislation. Repair, alterations and service charge clauses should allocate the cost of meeting future standards.
A lease is a risk-allocation document that will outlive the people who negotiated it. Draft every clause as if it will be read by a stranger in a dispute ten years from now.
Lease renewal and opposing a new tenancy
For a protected tenancy, the 1954 Act renewal procedure is where landlord and tenant solicitors London clients most often need early, precise advice. Deadlines are strict, and a defective notice can cost months.
The landlord can only refuse a new lease on one or more of the grounds in section 30(1), which must be stated in the section 25 notice or in the counter-notice to a tenant's request.
| Ground | Summary | Practical note |
|---|---|---|
| (a) | Tenant's failure to repair | Discretionary; the court looks at seriousness and whether the tenant ought to get a new lease |
| (b) | Persistent delay in paying rent | Discretionary; a clear arrears history and correspondence are needed |
| (c) | Other substantial breaches or management reasons | Discretionary; covers unauthorised use or alterations |
| (d) | Suitable alternative accommodation offered | Mandatory if the offer is genuinely suitable and on reasonable terms |
| (e) | Sub-letting of part where the whole is worth more let as one | Rarely used; narrow conditions |
| (f) | Landlord intends to demolish, reconstruct or carry out substantial works | Mandatory if intention and ability are proved; compensation usually payable |
| (g) | Landlord intends to occupy for its own business or residence | Mandatory; barred if the landlord's interest was acquired within the five-year window in section 30(2) |
Where a tenant loses its lease on grounds (e), (f) or (g), statutory compensation is usually payable under section 37, calculated by reference to rateable value and length of occupation. Either party can also ask the court to set an interim rent under section 24A while renewal proceedings run.
How a 1954 Act renewal usually runs
- Check status. Confirm whether the lease is protected or validly contracted out, who the competent landlord is, and the contractual expiry date.
- Serve or respond to notices. The landlord serves a section 25 notice, or the tenant serves a section 26 request; the recipient responds within the statutory window and states any grounds of opposition.
- Negotiate terms. Agree rent, length, breaks and other terms, usually with surveyors' valuation evidence, while protecting the court deadline.
- Protect the position. If terms are not agreed, apply to court before the statutory deadline or agree written extensions; missing it can end the tenant's rights.
- Court proceedings. Unopposed claims usually proceed in the County Court; opposed claims often have a preliminary trial of the landlord's ground.
- Interim rent and compensation. Deal with interim rent and, where the landlord succeeds on certain grounds, statutory compensation.
- Complete the new lease. Engross, sign and, where it exceeds seven years, register the new lease at HM Land Registry.
Before serving a section 25 notice, check the tenant's identity at Companies House and the register of title at HM Land Registry. A notice addressed to a dissolved company, a former group entity or the wrong landlord is one of the most common reasons landlord and tenant solicitors London courts see renewal timetables collapse.
Rent arrears: comparing the landlord's remedies
When rent goes unpaid, landlord and tenant solicitors London owners consult will start with one question: do you want to keep this tenant? The landlord's choice of remedy affects both recovery and the tenancy itself. Some remedies keep the lease alive; others end it.
| Remedy | Effect on lease | Key requirements |
|---|---|---|
| Debt claim in court | Lease continues | Pre-action letter; claim for rent, interest and costs; enforce any judgment |
| CRAR | Lease continues | Written lease of commercial premises; arrears of at least seven days' rent; notice of enforcement through an enforcement agent |
| Rent deposit or guarantor | Lease continues | Draw on deposit or claim against guarantor or former tenant under an AGA (with any statutory notices required) |
| Forfeiture | Lease ends if successful | Forfeiture clause; no waiver; peaceable re-entry or court proceedings; tenant may seek relief |
| Statutory demand or winding-up petition | Indirect | Undisputed debt; risk of costs if the debt is genuinely disputed |
The minimum arrears for CRAR, seven days' rent, is set by the Taking Control of Goods Regulations 2013. CRAR covers principal rent only, not service charge or insurance rent unless reserved as rent. Our debt recovery team handles court claims and enforcement.
Assignment, subletting, alterations and service charges
During the term, most of the work landlord and tenant solicitors London clients bring us is consent management. A tenant wanting to sell its business, bring in a group company or fit out new space needs the landlord's consent; the landlord wants to protect covenant strength and the building.
Where consent is not to be unreasonably withheld, the 1988 Act duty to respond within a reasonable time with written reasons gives tenants real leverage, and a landlord who delays can be liable in damages. Landlords should have a standard information request and timetable.
Alterations clauses distinguish between prohibited, consent-required and permitted works. Tenants should record the condition of the premises before fit-out and keep licences for alterations, because reinstatement obligations often surface only at lease end.
Service charge disputes typically concern what costs fall within the clause, whether they were reasonably incurred, and whether improvements are being passed off as repairs. Our article on commercial lease key terms sets out what to look for.
Lease end: breaks, dilapidations and forfeiture
Break clauses
Break clauses are construed strictly. Conditions such as "vacant possession" or "material compliance with covenants" can defeat a break if the tenant leaves items behind or has outstanding minor breaches. Serve the notice in the exact form and manner the lease requires, and pay all sums due up to the break date.
Dilapidations
At the end of a lease, the landlord may claim for breaches of repair, redecoration and reinstatement covenants. The Dilapidations Protocol expects the landlord to send its schedule and quantified demand generally within 56 days after termination, and the tenant to respond usually within 56 days of the quantified demand.
Damages for disrepair are capped by section 18(1) of the 1927 Act at the diminution in value of the reversion, so a diminution valuation is often decisive. Our guide to dilapidations claims explains the process.
Forfeiture
Forfeiture ends the lease for tenant breach. For non-payment of rent no section 146 notice is needed, but for other breaches it is. Accepting rent after knowing of a breach can waive the right to forfeit, and tenants and their lenders can apply for relief. Read more in our note on forfeiting a commercial lease.
Risks and common mistakes
Serving a defective statutory notice
Section 25 notices, section 26 requests and break notices must be served on the right party, at the right address, in the prescribed form and within strict time limits. Errors in the landlord's identity, the termination date or the method of service are common and can invalidate the notice.
Check the current registered proprietor at HM Land Registry, the lease's service clause and any changes of address before serving. Where in doubt, serve more than one way and keep proof of delivery. Correcting a defective notice often means starting the timetable again.
Waiving the right to forfeit
A landlord who knows of a breach and then does something that recognises the lease as continuing, such as demanding or accepting rent falling due after the breach, may waive the right to forfeit for that breach. Automated rent demands are a frequent culprit.
Once a forfeiture is in contemplation, put rent demands on hold and route all communications through one person. Continuing breaches such as unauthorised use may revive, but one-off breaches generally do not.
Contracting out after the tenant is bound
The warning notice and declaration must be completed before the tenant enters into the lease or becomes contractually bound to do so, for example under an agreement for lease. If an agreement for lease is signed first, the contracting-out procedure must be completed before that agreement.
Getting the order wrong means the tenant may have security of tenure despite the lease saying otherwise. Landlords relying on vacant possession for redevelopment should audit their files.
Using CRAR or re-entry on the wrong facts
CRAR is only available for commercial premises let under a written lease, for principal rent, and after the statutory notice. Taking control of goods without satisfying the conditions can expose the landlord to a damages claim.
Peaceable re-entry carries its own risks, including the tenant's relief application and potential criminal liability where any part is residential. A clear written strategy before enforcement is cheaper than defending a challenge.
Ignoring guarantor and former tenant notices
To recover fixed charges such as rent or service charge from a former tenant or its guarantor under a pre-1996 lease or an AGA, the landlord must usually serve a statutory notice within six months of the sum falling due under section 17 of the 1995 Act.
Missing that window can lose the claim entirely. Diarise notices whenever the current tenant falls into arrears.
Cross-border landlords and tenants
Many London landlords are overseas funds or family offices, and many tenants are subsidiaries of groups based in Bangladesh, the Gulf, Singapore, China or the EU. English law will govern the lease of English land, but parent company guarantees, rent deposits and enforcement may involve other jurisdictions.
A guarantee from a foreign parent is only as good as the ability to enforce it. We look at the guarantor's assets, whether a judgment could be enforced where they are, and whether security in England (a rent deposit or bank guarantee) is the better protection. Overseas landlords must also comply with the Register of Overseas Entities when granting registrable leases.
For Bangladeshi businesses opening London premises, our Dhaka office can coordinate group approvals and foreign-exchange matters while the London team negotiates the lease. Where the counterparty is in Singapore or Dubai, our offices there can assist with local corporate and enforcement questions.
How TRW & Co helps as landlord and tenant solicitors London clients can rely on
We act for landlords and tenants, from single-site occupiers to investors with multi-let portfolios. Contested matters are handled with our property litigation team; where advocacy in the higher courts is required, we instruct specialist counsel.
Lease negotiation
We draft and negotiate leases and agreements for lease, with clear rent review, break, repair, service charge and energy clauses. Contracting-out steps are timed correctly.
1954 Act renewals
We serve and respond to section 25 notices and section 26 requests, run negotiations and court applications, and advise on grounds of opposition and compensation.
Consents and estate management
We handle licences to assign, sublet and alter, rent deposits, AGAs and variations, keeping to the 1988 Act timetable.
Arrears and enforcement
We advise on CRAR, debt claims, guarantor claims and forfeiture, and on the risks of each route before action is taken.
Exit and dilapidations
We advise on break notices, surrenders, schedules of dilapidations and diminution valuations under the Dilapidations Protocol.
Portfolio reform readiness
We review lease templates and portfolios against the upwards-only ban, 1954 Act proposals and MEES, working with our commercial property team.
Explore our practice areas or contact the London office at Holborn Gate, 330 High Holborn, London WC1V 7QH (info@trw.co, +880 1779 127165).
Checklist for landlords and tenants
- Confirm whether each lease is protected by the 1954 Act or validly contracted out.
- Diarise expiry dates, break dates, rent reviews and the six-to-twelve-month section 25 window.
- Check break conditions and the notice clause well before the break date.
- Review rent review drafting against the coming upwards-only ban.
- Set a standard timetable for responding to consent applications.
- Stop automated rent demands before considering forfeiture.
- Serve section 17 notices on former tenants and guarantors within six months of arrears falling due.
- Commission a dilapidations schedule and diminution valuation in good time before lease end.
- Check EPC ratings and allocate future upgrade costs in the lease.
- Instruct landlord and tenant solicitors London cases need before serving any statutory notice.
Frequently asked questions
01Does my business lease give me a right to renew?
If you occupy premises for business purposes under a tenancy that has not been validly contracted out, Part II of the Landlord and Tenant Act 1954 usually gives you security of tenure. The lease continues after its expiry date until it is ended under the Act, and you can apply for a new lease. Check the lease for a reference to sections 24 to 28 being excluded, and check that a warning notice and declaration were completed before you were bound. Short tenancies and some other categories are outside the Act.
02Can my landlord refuse to renew my lease?
Only on the grounds listed in section 30(1) of the 1954 Act, and only if the ground was stated in the landlord's section 25 notice or counter-notice. The grounds include disrepair, persistent rent arrears, other substantial breaches, an offer of suitable alternative accommodation, redevelopment and the landlord's intention to occupy. Redevelopment and own-occupation grounds require proof of a genuine, firm intention and ability. If the landlord succeeds on certain grounds, statutory compensation is normally payable to the tenant.
03What can a landlord do about unpaid commercial rent?
The main options are a court claim for the debt, Commercial Rent Arrears Recovery through an enforcement agent, drawing on a rent deposit, claiming against a guarantor or former tenant, and forfeiture of the lease. Each has conditions and consequences: CRAR needs a written lease and at least seven days' rent outstanding, while forfeiture ends the lease and may leave the property empty. Insolvency processes are available for undisputed debts. The right choice depends on whether you want to keep the tenant.
04How long does a landlord have to respond to a request to assign?
Where the lease says consent cannot be unreasonably withheld, the Landlord and Tenant Act 1988 requires the landlord to give its decision within a reasonable time after receiving a written application, and to give written reasons for any refusal or conditions. What is reasonable depends on the circumstances, including what information the tenant supplied. A landlord that delays unreasonably can be liable for the tenant's losses, so both sides should keep a clear record of requests and responses.
05What is a dilapidations claim and how is it valued?
A dilapidations claim is the landlord's claim at lease end for the tenant's breaches of repair, redecoration and reinstatement obligations. The Dilapidations Protocol sets out the pre-action steps, including a schedule and quantified demand. Damages for disrepair cannot exceed the reduction in the value of the landlord's reversion under section 18(1) of the Landlord and Tenant Act 1927, and are excluded if the landlord will demolish or structurally alter the premises. Diminution valuations are often central to settlement.
06Does the upwards-only rent review ban affect my existing lease?
The English Devolution and Community Empowerment Act 2026 bans upwards-only reviews in new and renewal business tenancies, but only once regulations bring it into force. Existing leases are generally expected to be unaffected, though options and agreements for lease entered into before commencement need checking against the transitional rules. Landlords are considering stepped or index-linked increases instead. If you are negotiating a lease or renewal now, take advice on drafting that will work under both regimes.
07Can a landlord change the locks if I am in arrears?
Peaceable re-entry is a lawful method of forfeiting a commercial lease for non-payment of rent if the lease contains a forfeiture clause and the landlord has not waived the breach. It must be done without violence and is not appropriate where anyone lives at the premises. Tenants, and their lenders, can apply to court for relief from forfeiture, usually by paying the arrears and costs. If your locks have been changed, get advice immediately, because delay can count against relief.
Sources and official materials
- Landlord and Tenant Act 1954 — Business tenancy security of tenure and renewal
- Landlord and Tenant Act 1988 — Landlord's duty on applications for consent
- Law of Property Act 1925, section 146 — Restrictions on forfeiture and relief
- Tribunals, Courts and Enforcement Act 2007, Part 3 — Commercial Rent Arrears Recovery
- Taking Control of Goods Regulations 2013, Part 7 — CRAR minimum arrears and procedure
- Dilapidations Protocol — Pre-action steps for end-of-lease claims
- English Devolution and Community Empowerment Act 2026 — Business tenancy rent review reforms
General information only, current as at 21 October 2026. It is not legal advice and does not create a solicitor–client relationship. It reflects the law of England and Wales unless stated otherwise; Scotland and Northern Ireland have separate legal systems, and the law changes frequently. Check current official sources and take advice on the facts of your matter.