Hi Everybody
I have a commercial property which is on a 3 year lease.(My first commercial IP) There is an option for a further 3 years in the lease contract. I have no experience in commercilal lease contracts. Can somebody tell me the legal procedures required to have the lease extended if the tennant wants to stay on? Your input will be much appreciated.
Crusader1Crusader
I am assuming you are self managing?
Your Lease Agreement should spell out the notice period required to be given by either party prior to expiry of 3 year term and the details pertaining to renewal as well.
Regards
CliveCrusader1,
It is important that you familiarise yourself with the Deed of Lease as that spells out all the rules as they apply to your contract.
Generally the tenant has to give a minimum of three months notice if they are going to renew their lease (well that’s the case in NZ). Get that in writing from the tenant, and don’t have them use words such as “intend to renew” which is unenforceable. Have them put in writing something to the effect of, “Under the terms of the Deed of Lease xyz exercises its right of renewal”, and have it dated and signed by all the signatories to the lease.
Then conduct the rent review.
Best wishes
Julian2Thank you Clive & Julian for your advice.
I will take that on board.
Kind regards
Crusader1
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