Under the Landlord and Tenant Act 1954 (LTA 1954) commercial tenants may have a legal right to renew their lease at the end of the term, however, landlords are not obliged to grant a new lease unconditionally. Specific statutory grounds allow landlords to refuse renewal, usually to balance tenant protection with landlord property rights.

Statutory Grounds for Refusal

Section 30 of the Landlord and Tenant Act 1954 prescribe specific grounds that a Landlord can use to oppose an application for a new lease made by the Tenant.

Ground A – Breach of Tenant Obligations

A landlord can refuse to renew the lease if the tenant has failed to meet obligations under the existing lease, such as non-payment of rent or failure to maintain the property.

Ground B – Persistent Delay in Paying Rent

Even if the tenant eventually pays, habitual late payments can form a basis for refusal, demonstrating poor financial conduct.

Ground C – Other Substantial Breaches

This includes breaches unrelated to rent, such as unauthorized alterations, subletting, or nuisance behaviour.

Ground D – Alternative Premises Available

If the landlord offers suitable alternative premises, this may justify refusal in some jurisdictions.

Ground E – Tenancy Created by Subletting Without Consent

A tenant who sublet unlawfully may find their right to renew defeated.

Ground F – Demolition or Reconstruction

Where the landlord plans substantial redevelopment that cannot be carried out without gaining possession, they can refuse renewal.

Ground G – Landlord’s Intention to Repossess for Own Use

If the landlord intends to occupy the premises for personal use or for a business they intend to operate, this is a valid ground for refusal.

Legal Process

A landlord wishing to oppose renewal must serve notice and clearly state the grounds. If contested, the matter may go to court, where the landlord bears the burden of proving the validity of the ground.

Conclusion

Refusing to grant a new commercial lease is a legally sensitive process, often requiring strict adherence to statutory procedures and sufficient evidence. Landlords should seek legal advice before serving notice, while tenants should be aware of their rights and obligations under the lease and governing law.

For more information, contact the Dispute Resolution Team at Mewies Solicitors on 01756 799000 who can support you through the process of an opposed lease renewal.