By now everyone is pretty well aware that new leases need to be for a minimum of five years but there are exceptions so we thought we would point them out.
The term of a lease does not have to be a minimum of five years if:
- the Retail and Commercial Leases Act doesn’t apply (if you want more information on this please contact our office for an info sheet)
- the tenant is holding over from a previous tenancy that provided for up to five years
- a certificate signed by a solicitor has been obtained
- the tenant has been in the property for at least five years previously
- the tenancy is a sub-lease and is for the full balance of the term left on the head lease
- the premises have been excluded by regulations
- the tenant is related to the lessor
- the tenant is an incorporated association and the lease grants less than 15 hours a week occupation
Most of these exceptions are fairly uncommon but nevertheless it is useful to know they exist.