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Lily
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Great service from Lawhive
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Em
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We used Lawhive for a transfer of property and conveyancing. Our solicitor was so helpful and thorough with the whole process. He responded quickly and efficiently to any questions or requests that we had and explained some of the more complicated issues regarding the process clearly.
Geri
Fantastic service and experience with Lawhive
I had the pleasure of working with Lawhive doing a transfer of equity on a property. Our solicitor’s service was amazing, she responded quickly to any questions or concerns and kept me updated throughout the process. I can strongly recommend her for any conveyancing work that you may need. Fantastic service all round.
Jane
Amazing experience
After placing an enquiry, I received a call 20 minutes later, and then 2 hours later, I had a solicitor assigned to me. They were absolutely incredible right from the word go - amazing and very prompt with replies, answering all my questions and keeping the process moving. We finally completed today and I am so unbelievably happy. I wouldn’t hesitate to use Lawhive again in the future if needed.
Lily
First class service
I initially made an online enquiry about a tricky conveyancing matter and received an immediate call back. They understood straight away what was needed and gave me a quote that was very reasonable. It was such a pleasure to find someone who was cheerful, professional and completely reassuring as I’d been getting quite anxious about the sale of my house. The service Lawhive has provided is absolutely first class and I cannot recommend them enough.
Charles
Empathetic, professional and efficient
I am an executor, selling my mother's home. I found the assistance I received from Lawhive first rate - empathetic, professional and efficient.
Mark
Great service from Lawhive
We used Lawhive for our conveyancing needs and our solicitor was very helpful, patient and informative. She helped us with our needs with prompt responses and provided a very efficient service.
Kelvin
Great service when you need clarity and calm
Our solicitor was warm, friendly and provided crystal clear communication. A lot of conveyancers assume customers know everything about the process already, so it was really appreciated to hear each stage included in the price given.
Em
Quick and efficient
We used Lawhive for a transfer of property and conveyancing. Our solicitor was so helpful and thorough with the whole process. He responded quickly and efficiently to any questions or requests that we had and explained some of the more complicated issues regarding the process clearly.
Geri
Fantastic service and experience with Lawhive
I had the pleasure of working with Lawhive doing a transfer of equity on a property. Our solicitor’s service was amazing, she responded quickly to any questions or concerns and kept me updated throughout the process. I can strongly recommend her for any conveyancing work that you may need. Fantastic service all round.
Jane
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01 overview
In the world of commercial leases, a section 25 notice holds lots of weight as it signifies the start of lease renewal discussions or termination.
As a tenant, it is important to understand what a Section 25 notice means and how to deal with one when it is served to you by your landlord.
Or, if you are a landlord, understanding what a Section 25 notice can be used for, how to serve one, and on what grounds you can object to a new lease, is crucial.
This guide provides comprehensive information for landlords or tenants regarding Section 25 notices. It covers their purpose, usage, and their legal implications.
A section 25 Notice is a legal notice from a landlord to a tenant to either end or renew a commercial lease as outlined in the Landlord and Tenant Act 1954.
It indicates the landlord's intentions regarding the lease, whether they intend to continue under the existing terms, with new terms, or terminate the lease altogether.
This notice typically kickstarts discussions or legal actions regarding the future of the lease.
Section 25 notices are used when a landlord wishes to end a protected business tenancy or when they wish to negotiate new lease terms with the tenant.
These notices serve as the first step in either terminating or renewing the lease.
These notices are relevant for business tenancies where the property is used for commercial purposes, such as shops, offices, or industrial units.
A Section 25 notice can be issued amicably, with both parties agreeing to its terms.
However, it can also be issued under hostile circumstances, signalling a disagreement over lease terms or termination.
These notices are issued when both the landlord and the tenant agree on the lease terms.
Typically, in a friendly scenario, the landlord and tenant will have already discussed the lease renewal terms and have agreed before the notice is served.
The purpose of a friendly Section 25 notice is to formalise the agreed-upon terms and comply with legal requirements.
Hostile notices are issued when there is a disagreement between the landlord and the tenant regarding lease renewal terms.
This may happen when negotiations have broken down, and the parties can't reach an agreement on rent, lease duration, or other terms.
In a hostile situation, the landlord or tenant may serve a Section 25 notice to start the formal legal process for lease termination or renewal, even if the other party opposes it.
Hostile notices can often lead to disputes and may result in legal proceedings if the parties cannot resolve their differences through negotiation or mediation.
A valid section 25 notice must include essential details such as the landlord's identity, the property's description, the lease's termination date or renewal terms, and compliance with legal requirements, as outlined in the Act.
The key components of a section 25 notice are:
The notice should identify the landlord and the tenant, including their names and addresses. This ensures that the intended recipient of the notice is identified.
The notice must give an accurate description of the property subject to the lease.
This description should include details such as the address and any specific identifiers that uniquely identify the premises.
The notice should specify the length of the notice period, which is the period given to the tenant to respond to the notice.
The notice period is typically determined by the terms of the lease or statutory requirements.
The notice must clearly state whether the landlord is seeking to terminate the lease or renew it.
This is a critical decision that has significant implications for both parties, so it must be communicated in the notice.
If the landlord is offering a lease renewal, the notice should outline the proposed terms of the new lease.
This may include details such as the duration of the lease, rent amount, rent review provisions, and any other relevant terms.
The notice should include the date of which it is served on the tenant.
This date is important as it determines the start of the notice period and establishes compliance with legal requirements regarding notice service.
The notice must be signed by the landlord or their authorised representative.
This confirms the landlord's intention and consent to start the lease termination or renewal process.
The notice should specify the method by which it is served on the tenant. This could include personal delivery, recorded delivery, or serving it through a professional process server.
The chosen method must comply with legal requirements and ensure the tenant receives the notice.
While not a formal component of the notice, landlords and tenants should seek legal advice from a commercial property solicitor before serving or responding to a Section 25 notice.
Legal advice can help ensure that their rights and interests are protected throughout the lease termination or renewal process.
Only the landlord or their authorised agent can serve a Section 25 notice.
Landlords are typically the legal owners of a property or have the legal authority to act in this capacity.
Authorised representatives may include property management companies or solicitors appointed by the landlord to handle lease-related matters.
The person serving the section 25 notice must have the legal authority to do so, as failure to comply with this requirement could render the notice invalid.
Additionally, the notice must be served following the specific requirements outlined in the Landlord and Tenant Act 1954 and any other relevant legislation.
A section 25 notice must be served in writing and delivered to the tenant by hand or via registered post.
Proof of service is required, as failure to comply with service requirements may invalidate the notice.
As mentioned earlier, the delivery method must be detailed in the notice.
On receiving a Section 25 notice, the tenant becomes aware of the landlord's intention not to renew the lease at the end of its term.
This triggers a negotiation period between the landlord and tenant regarding the terms of the lease renewal.
The tenant can either accept the landlord's proposed terms for lease renewal or negotiate alternative terms within a specified time frame.
If they can't reach an agreement, the matter may go to court where a judge will decide the lease renewal terms, including rent amounts and other conditions.
During this period, the tenant may also find a solicitor and get legal advice to understand their rights and obligations under the lease and to negotiate effectively with the landlord.
Both parties must engage in good faith negotiations and comply with legal requirements to ensure a fair and lawful outcome.
The duration of a Section 25 notice process varies depending on several factors, including tenant response, negotiation outcomes, and potential legal disputes.
A deadline will be given for the tenant to either agree to the terms or start legal proceedings.
The minimum notice period that a Section 25 notice can give is six months and the maximum is 12 months.
A landlord can object to giving a new lease to a tenant on various grounds outlined in the Landlord and Tenant Act 1954.
There are two mandatory grounds for a landlord to object to a new lease. These grounds need to be proven in court, necessitating the court to refuse a new lease.
They include:
If the landlord can demonstrate a genuine intention to demolish or reconstruct the property, the court must refuse the grant of a new lease.
Similarly, if the landlord intends to occupy the premises themselves, they can object to a new lease, and the court must uphold this objection if proven.
Some discretionary and common grounds for objection, of which a court will have the discretion to decide, include:
The grounds for objection must be valid and lawful, and the landlord must follow the legal procedures outlined in the Landlord and Tenant Act 1954 when serving a section 25 notice. Failure to do so could result in legal repercussions for the landlord.
If a tenant refuses to vacate the premises following a valid Section 25 notice, the landlord may start eviction proceedings to regain possession of the property.
Initially, the landlord may negotiate with the tenant to get them to leave voluntarily. They may offer incentives or discuss alternative arrangements to facilitate a smooth transition.
If negotiation fails, both parties may opt for mediation, where an impartial mediator helps them reach a mutually acceptable agreement. Mediation can be a cost-effective and less confrontational way to resolve disputes compared to court proceedings.
If negotiation and mediation are unsuccessful, the landlord may start court proceedings to evict the tenant.
This involves submitting a claim for possession to the court and attending a hearing where a judge will consider the case.
If the court determines that the landlord is entitled to possession of the property, they will issue a possession order specifying the date by which the tenant must vacate.
The tenant may be given a fixed period to leave voluntarily, usually around 14 to 28 days.
If the tenant fails to vacate by the specified date, the landlord can apply for a warrant for possession, allowing court-appointed bailiffs to evict the tenant forcibly.
The bailiffs will attend the property, remove the tenant and their belongings, and change the locks if necessary.
The tenant may be liable for the landlord's legal costs associated with the eviction process.
Additionally, if the tenant's refusal to leave causes financial losses or damages to the landlord, they may seek compensation through further legal action.
Tenants can challenge a Section 25 notice in court if they believe it's invalid, issued in bad faith, or fails to comply with legal requirements.
Seeking legal advice and representation is advisable for going through court proceedings.
At Lawhive, we offer expert legal advice and support for landlords and tenants navigating Section 25 notices and lease terminations.
Our experienced network of landlord and tenant solicitors provides tailored guidance, ensuring legal compliance and protecting your interests throughout the process.
Get in touch today to get a free case assessment.
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