Most lease renewals are treated as routine — but without understanding the building’s condition, tenants can take on far more risk than they realise.
When a commercial lease starts coming to an end, it’s easy to assume the next step is just a case of rolling things forward. You’re settled, the space works, and a renewal feels like the natural option. But a lease renewal isn’t a continuation — it’s a new agreement. And that’s where a lot of the risk sits.
At Bressummer Ark, we’re often brought in when terms have already been discussed and everything feels broadly agreed, but no one has really stopped to look at what the new lease actually means in practice.
A commercial lease renewal replaces your existing lease with a new one. That gives both landlord and tenant the opportunity to revisit things like rent, lease length and break options. It also resets your obligations.
That’s the part that tends to get overlooked. Because while the legal process is usually handled well, the condition of the building — and how that ties into your responsibilities — often isn’t considered in the same level of detail. It’s also worth being clear on the difference between a renewal and an extension. An extension typically just pushes back the end date of your current lease, often on the same terms. A renewal starts again. You may never leave the building, but from a legal point of view, you’re taking on a new set of commitments.
In the UK, many tenants benefit from security of tenure under the Landlord and Tenant Act 1954, which can give a right to renew. But it’s not automatic, and some leases are contracted out altogether. We often find tenants assume they have a right to stay, only to discover later that their position isn’t quite as secure as they thought.
Timing plays into this as well. The renewal process should ideally start around 6–12 months before the lease ends. That’s when formal notices are typically served — either by the landlord (Section 25) or the tenant (Section 26). In reality, things often get left later than that. By the time conversations properly start, positions have already been taken and there’s less room to step back and look at the bigger picture.
The biggest issue we see with lease renewals isn’t usually the headline terms — it’s the condition of the property. There’s often an assumption that because you’ve been occupying the building, its condition is already understood. But unless that condition is formally documented and tied into the lease, it isn’t. That’s where tenants can get caught out. Signing a new lease without that clarity can mean taking responsibility for issues that were already there — whether that’s roof defects, ageing services or general deterioration. Over time, that can lead to tenants effectively “repairing up” the building, and facing significant costs at lease end.
This is typically where we add value.
Before a lease is renewed, we’ll often inspect the property to understand its current condition and highlight anything that could become a liability. In many cases, that leads to a Schedule of Condition being prepared, which can then be referenced in the lease to limit responsibility to the building’s existing state. It’s a straightforward step, but it makes a significant difference. Without it, the default position can be far more onerous than expected.
We also tend to work alongside solicitors during this stage, making sure that what’s agreed in principle actually translates properly into the lease wording — particularly around repair obligations.
A renewal is also an opportunity.
Because you’re effectively starting again, there’s scope to revisit the terms in a way that better reflects the building and your position as a tenant. That might mean negotiating rent, introducing flexibility through break clauses, or aligning repair obligations with the actual condition of the property. These conversations are much easier to have when you understand the building properly. Without that, it’s difficult to negotiate with confidence.
Lease renewals tend to feel familiar, which is why they’re often treated as a formality. But legally and practically, you’re starting from scratch. Most of the risk sits in the detail — particularly around condition and repair — and it’s not always obvious at the point of signing. Taking a bit of time to properly understand what you’re agreeing to can make a significant difference over the life of the lease. And if nothing else, it gives you confidence that there won’t be any surprises further down the line.
If you’re approaching a renewal and want a second view before committing, it’s always worth having that conversation early.
A commercial lease renewal is when your existing lease is replaced with a new agreement. Even if you stay in the same property, the terms — including rent, lease length and repair obligations — can change.
A renewal creates a completely new lease with updated terms. An extension usually just pushes back the end date of your current lease, often on the same terms.
In many cases, yes — under the Landlord and Tenant Act 1954. However, some leases are contracted out of this protection, and landlords can refuse renewal on certain legal grounds, such as redevelopment.
It’s important, in order for us to understand your requirements from the outset in order to give the best commercial building consultancy advice we can.
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