Section 26 notices: a guide to requesting a new commercial lease

A Section 26 request allows a tenant with security of tenure under the Landlord and Tenant Act 1954 to formally start the process of renewing its commercial lease.

Rather than waiting for the landlord to initiate the renewal process, the tenant can serve a Section 26 request proposing the start date and terms of a new tenancy. The landlord can negotiate those terms or, if it intends to oppose renewal, must respond within the required timeframe and identify the statutory ground or grounds on which it intends to rely.

For tenants who want to remain at their premises, a Section 26 request can be an important way to take control of the commercial lease renewal process.

If you are considering serving a Section 26 request or have received one from your tenant, contact our solicitors for advice.

What is a Section 26 request?

Section 26 of the Landlord and Tenant Act 1954 allows a qualifying business tenant to request a new tenancy from its landlord formally.

It is commonly referred to as a Section 26 notice, although the legislation describes it as a tenant's request for a new tenancy.

The procedure applies to qualifying business tenancies that benefit from security of tenure under Part II of the 1954 Act.

Where the Act applies, the tenant will generally have a statutory right to a new tenancy unless the landlord can successfully oppose renewal on one or more of the statutory grounds.

The position is different where the existing commercial lease has been validly 'contracted out' of the security of tenure provisions of the Act. A tenant under a contracted-out lease does not normally have the statutory right to request a new tenancy using the Section 26 procedure.

When can a tenant serve a Section 26 request?

The tenant must propose a commencement date for the new tenancy that is not less than six months and not more than 12 months after the Section 26 request is made.

The proposed commencement date cannot be earlier than the date on which the existing tenancy would otherwise come to an end. Timing therefore matters.

A tenant considering renewal should review the existing lease and future property requirements well before the contractual expiry date.

A Section 26 request also cannot be made where the landlord has already served a valid Section 25 notice to initiate the statutory renewal process.

What does a Section 26 request contain?

A Section 26 request must be made in the prescribed form and include the tenant's proposals for the new tenancy.

These include proposals relating to:

• The property to be included in the new tenancy.
• The proposed rent.
• The proposed terms of the new tenancy.

The terms put forward in the request provide a starting point for negotiations between the landlord and tenant.

They do not mean that the landlord must accept the tenant's proposed rent or other terms.

Why might a tenant serve a Section 26 request?

Serving a Section 26 request allows the tenant to formally initiate the lease renewal process rather than waiting for the landlord to act.

This may be particularly useful where the tenant knows it wants to remain in the property and begin negotiations over a new lease.

Renewal also provides an opportunity to consider whether the terms of the existing lease continue to meet the requirements of the business.

Depending on the circumstances, negotiations might cover:

• Rent.
• The length of the new lease.
• Break clauses.
• Rent review provisions.
• Repairing obligations.
• Service charges.
• Assignment and subletting.
• Permitted use.
• Alterations.

The tenant should therefore consider its commercial requirements before deciding what terms to propose.

What happens after a Section 26 request is served?

Once the request has been served, the landlord must decide whether it is willing to grant a new tenancy or intends to oppose renewal.

Where the landlord is willing to renew, the parties can negotiate the terms of the new lease.

The tenant's proposals contained in the Section 26 request will provide a starting point, but both sides can put forward different terms during negotiations.

Where agreement is reached, the parties' solicitors can document the terms in a new lease.

If the parties cannot agree all of the terms, either the landlord or tenant may be able to apply to the court for the grant of a new tenancy and determination of the outstanding terms.

Can a landlord oppose a Section 26 request?

Yes, but a landlord cannot simply reject a Section 26 request from a protected tenant because it does not want to grant a new lease.

To oppose renewal, the landlord must rely on one or more of the statutory grounds under Section 30 of the Landlord and Tenant Act 1954.

Broadly, the seven grounds concern:

• The tenant's failure to comply with repairing obligations.
• Persistent delay in paying rent.
• Other substantial breaches of the tenant's obligations or reasons connected with its use or management of the premises.
• The availability of suitable alternative accommodation.
• Certain circumstances involving a subletting of part of a larger property.
• The landlord's intention to demolish, reconstruct or carry out substantial works to the property.
• The landlord's intention to occupy the premises for its own business or as a residence.

Whether a landlord can successfully establish a ground for opposition will depend on the circumstances and evidence.

The landlord's two-month deadline

Where a landlord intends to oppose the tenant's request for a new tenancy, it must notify the tenant within two months of receiving the Section 26 request.

The landlord must state the statutory ground or grounds on which it intends to rely.

This is an important deadline. If the landlord fails to serve the required notice within the two-month period, it will be unable to subsequently oppose the tenant's application for a new tenancy on a Section 30 ground.

Landlords receiving a Section 26 request should therefore consider their intentions promptly and take advice where necessary.

What happens if the landlord and tenant cannot agree the new lease?

One of the most important aspects of the Section 26 procedure is ensuring that the statutory deadline for applying to court is not missed.

If the landlord and tenant have not agreed a new lease, an application for a new tenancy must be made before the relevant statutory deadline. Alternatively, the parties can agree in writing to extend the deadline, allowing negotiations to continue while preserving their respective positions.

Missing the deadline can have serious consequences for a tenant's right to a new tenancy. It is therefore important not to assume that ongoing negotiations with the landlord remove the need to protect the statutory position.

In practice, landlords and tenants will often continue negotiating the rent and other terms while either issuing proceedings or agreeing an extension to the deadline.

Where agreement cannot ultimately be reached, the court can determine matters including the rent, duration of the tenancy and other terms of the new lease.

Tenants should keep the statutory timetable under review from the point the Section 26 notice is served and take legal advice well before the deadline approaches.

What happens when the landlord opposes renewal?

Where the landlord serves notice within the two-month period stating that it opposes renewal, the tenant will need to consider the statutory ground or grounds being relied upon.

The tenant may decide to accept the landlord's position or challenge the opposition.

Where the matter cannot be resolved, the court may ultimately need to determine whether the landlord has established the relevant ground.

The evidence required will depend on the particular ground relied upon.

Early advice can be particularly important where the tenant's continued occupation of the premises is important to the business.

Can a tenant withdraw a Section 26 request?

Serving a Section 26 request formally starts the statutory renewal process and can have important consequences.

A tenant should therefore consider its intentions and the proposed terms carefully before the request is served rather than treating it simply as an informal opening to negotiations.

If circumstances change after service, advice should be taken on the options available and the implications for the existing tenancy and renewal process.

Section 26 requests and interim rent

The rent payable during the renewal process can become important where the market rental value of the property has changed since the existing rent was agreed.

The Landlord and Tenant Act 1954 contains provisions allowing an application for interim rent in appropriate circumstances.

Interim rent can affect the amount payable for the period between the relevant statutory date and commencement of the new tenancy.

Both parties should therefore consider the potential interim rent position alongside negotiations over the rent for the new lease.

Statutory compensation if renewal is opposed

Where a landlord successfully opposes renewal on certain statutory grounds that do not relate to fault by the tenant, the tenant may be entitled to statutory compensation.

Whether compensation is payable and the amount available will depend on the circumstances and the relevant provisions of the Act.

A tenant facing an opposed renewal should therefore consider potential compensation as part of its overall position.

Reform of the Landlord and Tenant Act 1954

The Law Commission is currently reviewing the security of tenure regime under Part II of the Landlord and Tenant Act 1954.

Its second consultation, published in June 2026, considers how the existing renewal regime could be modernised. The current Section 26 procedure remains in force while that work continues.

Planning your next commercial lease

A Section 26 notice allows a commercial tenant to take the initiative over renewing its lease and begin the formal process of securing a new tenancy. It also provides an opportunity to consider whether the terms of the existing lease continue to meet the needs of the business.

Our solicitors advise tenants throughout the lease renewal process, from preparing and serving Section 26 notices to negotiating rent, lease length, break clauses and other terms of the new lease.

If you are considering renewing your commercial lease, contact our solicitors for advice.