Renewing a lease

[jamie]

I have a lease for a shop that is coming to an end, and I wish to renew it. The lease is inside the landlord and tenant act and I have sent the landlord a section 26 notice.
The landlord has replied offering me a fully repairing and insuring lease contracted outside the provisions of the landlord and tenant act, with rolling mutual break clauses on 3 months notice. I believe the reason the landlord wants the new lease to be out of the landlord and tenant act is because he is planning to redevelop the area and doesn’t want to pay compensation if he does not renew the new lease. Also he would have the option to terminate the new lease with just 3 months notice, this is not something I'm happy with.
I know that under the landlord and tenant act he is obligated to renew the lease unless “on the termination of the current tenancy the landlord intends to demolish or reconstruct the premises” in which case he has to pay compensation. But as he is not planning redevelopment straight away and wants to give me a new lease, does the landlord have to renew the lease inside the act, or is he entitled to insist on it being outside the act? Also can he insist on the brake clause when there wasn’t one in the original lease?

Any advice or comments would be very much appreciated.

[Joyous]

My advice is go see a solicitor. For something as important as this you can't afford to follow free advice given out on a forum by someone who may or may not know what they're talking about.

A number of solicitors will give you a free initial consultation so it might not work out as expensive as you think.

Regards

Joy

[bwglaw]

A landlord is not obliged to renew an existing lease on the same terms and the Landlord cannot vary a fundamental term at the time of a break clause

[www.limeone.com]

If you have served the correct form of a section 26 notice and he has responded with a new lease he has not followed the correct procedure. He should have served you with a section 25 notice prior to your service of the section 26 notice.

You need to take advice from a specialist commercial leasehold lawyer who can advise you of both the next steps to bring the matter before the court and also whether the landlords' behaviour has attracted a claim for damages in addition.

The landlord can ask the court to consider a lot more than redevelopment including any previous breaches on your part and non payment of rent etc.