When Can a Landlord Serve a Section 25 Notice

A landlord can serve this notice at any point after the lease begins, but the law requires it to be served no less than 6 months and no more than 12 months before the lease's end date.

If you're unsure about serving or responding to a Section 25 notice, contact our specialist commercial lease solicitor at 0203 959 7755 for expert guidance.

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What Is a Section 25 Notice?

A Section 25 notice is a formal document served by a landlord to a business tenant under the Landlord and Tenant Act 1954. It's used to either propose new terms for a lease renewal or to notify the tenant of the landlord's intention to terminate the commercial tenancy.

The Purpose of Serving a Section 25 Notice

The purpose of serving a Section 25 notice is to initiate the process of either ending or renewing a commercial lease, depending on the landlord's intentions.

The Section 25 notice serves two main purposes. First, the landlord might want to offer new terms for a lease renewal, maybe changing the rent or lease length. Second, the landlord can use the notice to oppose the renewal of the existing lease entirely, signalling they don't want the tenant to continue occupying the premises after the current lease ends.

Ultimately, serving a Section 25 notice allows landlords to take control of the lease's future, whether that involves negotiating new terms or ending the tenancy for valid, legal reasons.

When Can a Landlord Serve a Section 25 Notice?

To comply with the Landlord and Tenant Act 1954, a valid Section 25 notice must be served between 6 and 12 months before the commercial lease is due to end.

This window ensures that both parties have enough time to prepare for either lease renewal negotiations or lease termination.

Why Is the Timing So Important?

Timing is everything when it comes to serving a Section 25 notice, as serving the notice outside this 6 to 12-month window can make it invalid.

If the landlord serves it too early, the tenant may ignore the notice or challenge it. Serving it too late leaves little time to sort out negotiations or legal processes, which can cause delays and uncertainty. Proper timing protects both landlord and tenant interests and keeps the lease process running smoothly.

What Happens After a Section 25 Notice is Served?

Once a landlord serves a Section 25 notice, it starts the clock ticking. From this point, either the landlord and tenant agree on the way forward, or legal action may be necessary.

Negotiation Begins

After the service, most landlords and tenants enter into negotiations. These discussions usually focus on:

• The terms of a new lease (if one is being offered), such as rent, duration, and conditions, or
• The validity of the landlord's opposition (if the landlord doesn't want to renew), especially if the tenant plans to challenge it.

Critical Deadline for Tenants

The Section 25 notice will include a deadline. This is extremely important. If the tenant does not act by the deadline, they risk:

• Losing their legal right to occupy the premises, and
• Losing their right to a new lease under the 1954 Act.

By the Deadline, the Tenant Must Do One of the Following:

1. Complete a new lease agreement with the landlord, OR
2. Agree in writing with the landlord to extend the deadline, OR
3. Issue court proceedings to request a new lease and ask the court to decide the terms.

If the tenant does nothing, they may be forced to vacate the property, even if they've been trading there for years.

Can Either Party Take Legal Action Before the Deadline?

Yes, after two months have passed since the Section 25 notice was served, either the landlord or the tenant can apply to the court, even before the six-month deadline.

This might be useful if:

• Negotiations have broken down, or
• One party wants to speed things up and get clarity from the court.

However, in practice, most parties wait and try to resolve matters through negotiation before going to court. Legal proceedings can be time-consuming and expensive, so they're usually a last resort.

Consequences of Non-Compliance

If the landlord does not serve the Section 25 notice within the required 6 to 12 months timeframe, or if they fail to provide proper grounds for opposing renewal when applicable, the notice could be deemed invalid by the courts. This means the landlord might lose their right to end the tenancy as intended, and the tenant could automatically gain protection to continue occupying the property.

Can a Landlord Serve a Section 25 Notice If They Want to Oppose the Lease Renewal?

Yes. A landlord can serve a Section 25 notice to oppose lease renewal, but they must clearly state valid grounds for opposition in the notice. Common reasons include plans to redevelop the property, occupy it personally, or tenant breaches such as unpaid rent. Without these lawful grounds, the landlord risks the notice being invalid under the Landlord and Tenant Act 1954.

What Happens If the Landlord Does Not Serve the Section 25 Notice Properly?

If a Section 25 notice is not served within the correct 6 to 12-month window or lacks valid grounds for opposing renewal, it can be deemed invalid. This means the tenant may automatically receive protection to continue the business lease, and the landlord may lose the right to terminate the tenancy or refuse renewal. Proper service is essential in the business lease notice process.

How Should a Tenant Respond to a Section 25 Notice?

Upon receiving a Section 25 notice, tenants can accept the landlord's proposed new terms, negotiate for better conditions, or, if the landlord opposes renewal, apply to the court for a new lease. Tenants should consult a commercial lease solicitor to fully understand their tenant rights in a business lease and take the right steps to protect their interests.

Need Help with a Section 25 Notice?

Whether you're trying to renew a lease, end a tenancy, or negotiate better terms, following the correct process is essential to protect your legal rights.

Moeen & Co. Solicitors provides trusted advice on commercial lease renewals, including support with Section 25 notices, which play a key role for both landlords and tenants under the Landlord and Tenant Act 1954.

If you need help serving or responding to a Section 25 notice, call Moeen & Co. Solicitors on 0203 959 7755 or drop us an email at info@moeenco.com.