Key Takeaways
- The Landlord and Tenant Act 1954 sections 24–28 grant most business tenants critical rights, including security of tenure and a straightforward legal process for lease renewal or termination.
- Incorrectly serving a Section 25 or Section 26 notice can trigger expensive disputes and even make lease provisions unenforceable.
- Knowing whether your business lease is protected by the Act is essential to secure your rights and avoid costly errors.
- Contracting out of the Act demands a valid statutory declaration and precise lease wording—any mistake may mean the loss of contracted-out status and unintended security of tenure.
- Failing to follow the correct procedures for renewal or termination can result in long delays, lost rental income, or a sitting tenant you cannot remove.
- Modern templates and practical guides help both landlords and tenants streamline the lease process and ensure legal compliance.
- Using Go-Legal AI’s business lease toolkit saves time, mitigates risk, and provides a cost-effective solution compared to traditional law firms.
Go-Legal AI is rated Excellent on Trustpilot with over 170 five-star reviews from satisfied users.
What Do Sections 24–28 of the Landlord and Tenant Act 1954 Mean for Your Lease?
Navigating commercial lease renewals or terminations in England and Wales can be daunting, especially when dealing with the Landlord and Tenant Act 1954 sections 24 to 28. A missed deadline or poorly drafted notice—whether Section 25 or Section 26—could expose you to disputes, legal costs, or loss of business premises.
This expert guide demystifies the Act’s key sections, reveals which business leases are covered, and provides actionable, step-by-step advice on serving notices and contracting out of security of tenure. We also deliver free, expertly crafted templates so you can issue the correct documents with total confidence—protecting your business and avoiding unnecessary legal spend.
You can manage lease renewals and terminations with confidence by using our AI-powered platform. Draft compliant documents, check your protection status, and avoid common legal pitfalls—all in one place.
⚡ Get legal tasks done quickly
Create documents, follow step-by-step guides, and get instant support — all in one simple platform.
🧠 AI legal copilot
📄 5000+ templates
🔒 GDPR-compliant & secure
🏅 Backed by Innovate UK & Oxford
Understanding Security of Tenure: Who Is Protected?
Security of tenure is the statutory protection that lets qualifying business tenants remain in their premises and renew their lease at the end of the fixed term. Under the Landlord and Tenant Act 1954, most business tenants have these rights unless there is a specific exclusion.
You are typically protected if:
- You occupy the premises for your business purposes.
- The lease does not expressly state it is “contracted out” of sections 24–28.
- You do not have a short-term or excluded tenancy, such as a service tenancy or certain temporary agreements.
A protected tenant can only be removed if the landlord proves grounds set out in the Act, and the tenant is always entitled to request a renewal on reasonable terms.
Landlord and Tenant Act 1954 Sections 24–28 Explained
Each section of the Act delivers essential protection or structures the renewal and termination processes for business tenancies:
| Section | What It Covers |
|---|---|
| Section 24 | Grants business tenants the right to stay after lease expiry unless the landlord proves valid grounds. |
| Section 25 | Lets landlords serve notice to end or renew a lease, stating whether opposition is intended. |
| Section 26 | Allows tenants to request a new lease by formal written notice. |
| Section 27 | Enables tenants to end their tenancy by giving proper notice. |
| Section 28 | Defines protections for successive tenancies and clarifies when protection starts or ends. |
Is My Lease Protected or Excluded by the Act?
Protection status depends on your lease’s structure and wording. A business lease is generally protected unless:
- The landlord and tenant have contracted out by following the statutory procedure, including written warning and a statutory declaration.
- It’s a service tenancy (for residential caretakers or similar roles).
- It is a short-term, temporary letting, or a licence rather than a lease.
Look for clear statements in your lease such as:
“This lease is excluded from the security of tenure provisions of Part II of the Landlord and Tenant Act 1954.”
Contracting Out of the Landlord and Tenant Act: Key Steps and Mistakes to Avoid
Landlords often want certainty that a tenant will leave at the lease end, so may insist on “contracting out” of security of tenure protections. This exclusion is absolutely valid—if, and only if, the statutory process is followed exactly.
How to Contract Out Properly
-
Advance Written Warning:
The landlord provides the tenant with a formal warning notice, at least 14 days before the lease is granted (or the tenant waives this waiting period by statutory declaration). -
Statutory Declaration:
The tenant must sign a statutory declaration (before an independent solicitor, notary, or commissioner for oaths) confirming they understand they are giving up security of tenure. -
Lease Wording:
The lease must explicitly state that it is excluded from sections 24 to 28 of the Act.
Serving Section 25 and Section 26 Notices: Timeline and Process
Getting the notice procedure right is crucial—serve the wrong notice, miss a deadline, or use the incorrect form, and you could lose vital commercial rights.
Step-by-Step Timeline
-
Determine Intentions:
– Landlord: Do you wish to end or renew the tenancy?
– Tenant: Do you want to renew? -
Choose and Draft the Correct Notice:
– Landlord: Section 25 notice (specifying renewal or opposition).
– Tenant: Section 26 notice (requesting a new lease with preferred terms). -
Timing:
Notices must be served 6–12 months before the intended termination or new lease start date. -
Service:
Deliver the notice by hand, post, or another valid method as set out in the lease. -
Negotiation and Next Steps:
The parties negotiate. If unable to agree terms, either side can apply to the County Court before the notice period expires to protect their rights.
Key Clauses and Notices for Lease Renewal and Termination
| Notice or Clause | What It Does | Why It Matters |
|---|---|---|
| Section 25 Notice | Landlord notice to terminate/renew, sets process in motion | Preserves landlord rights, triggers deadlines |
| Section 26 Notice | Tenant request for renewal | Protects tenant’s chances of staying |
| Statutory Declaration | Confirms tenant accepts loss of security of tenure | Essential for valid contracting out |
| Grounds for Opposition | Landlord’s reason to oppose renewal (set by law) | Prevents arbitrary eviction |
| Interim Rent Agreement | Temporary rent arrangement during renewal talks | Maintains clear payment expectations |
Common Mistakes With Section 25 and 26 Notices – And How to Avoid Them
Landlords and tenants frequently stumble on technical requirements:
- Serving an outdated notice form, or with the wrong prescribed information.
- Issuing notice outside the 6–12 month statutory window.
- Landlords failing to state clear, valid grounds for opposition.
- Tenants not responding or missing application deadlines.
- Attempting to serve notices via email when the lease prohibits it.
What Happens If Lease Renewal is Opposed or Negotiations Fail?
If the parties cannot agree renewal terms or if the landlord opposes renewal on statutory grounds, either side can apply to the County Court under the Act. The process is structured but highly time sensitive.
Typical Court Process
-
Application:
Made before the notice expiry date. Delay may result in automatic loss of rights. -
Case Management:
Directions will set out evidence, witness statements, and deadlines. -
Hearing:
The judge examines:- Whether the Act protects the tenancy.
- If landlord’s grounds for refusal meet legal standards.
- What constitute fair lease terms.
-
Decision:
The court can order a new lease with market terms, or confirm possession to the landlord if opposition is upheld.
Where to Find Free Section 25 and 26 Notice Templates (Legally Compliant)
A valid Section 25 or Section 26 notice must use the current prescribed statutory wording. Any deviation risks the notice being set aside—potentially costing months in delays.
With our tools, you can:
- Access up-to-date notice templates, checked by UK legal experts.
- Populate, download, and serve forms with date and address fields filled automatically.
- Receive reminders for notice periods and follow-up actions.
How Our Platform Simplifies Lease Renewal and Notice Procedures
Go-Legal AI’s platform puts you in control of every stage of the Landlord and Tenant Act 1954 process, including:
- Instantly analysing any lease for security of tenure status.
- Producing Section 25 and 26 notices with auto-populated, error-free statutory wording.
- Creating compliant statutory declarations and warning notices for contracting out.
- Guiding landlords and tenants through every step, including interim rent requests and court application timelines.
- Providing audit trails, delivery proofs, and e-signature options.
Frequently Asked Questions
What is a protected business tenancy?
A protected business tenancy is a lease that gives the tenant automatic rights to remain in the premises and claim renewal under the Landlord and Tenant Act 1954, unless the landlord can prove one of the statutory grounds for eviction.
How much notice does a landlord have to give under Section 25?
A landlord must give the tenant at least six months but not more than twelve months’ notice before the proposed end date. Notice served outside this window is invalid.
Can a landlord refuse to renew a business lease under the Act?
Yes, landlords can refuse renewal, but only on limited statutory grounds, such as intention to redevelop, tenant’s persistent breaches, or requirement for their own use. These must be set out in the Section 25 notice and supported with real evidence if challenged.
What documents are needed to contract out of security of tenure?
The landlord must issue a formal warning notice and the tenant must sign a statutory declaration before an independent solicitor, notary, or commissioner for oaths. The lease must also state that security of tenure is excluded.
What if a Section 25 or 26 notice is served incorrectly?
If notice is served late, by the wrong method, or with non-compliant wording, it can be declared void. This means your lease renewal or termination process may need to restart entirely. Always use up-to-date templates and check the details carefully.
How does interim rent work?
If lease renewal negotiations are ongoing, either party can apply to the court for an interim rent order—this sets a temporary rent payment until the new lease starts or the tenant leaves.
Who pays legal costs in a lease renewal dispute?
Usually, each party pays their own legal costs unless the court finds one acted unreasonably and orders them to pay the other’s costs.
Can I use a free template for my notice?
Yes, but it must match current statutory wording, including all information required by law. Our AI-powered template builder helps ensure compliance in every notice generated.
What are the main grounds for opposing renewal?
Statutory grounds include landlord redevelopment, landlord’s own occupation, tenant’s serious breaches, or persistent late payment. Full grounds are listed in Section 30(1) of the Act.
How and where is a statutory declaration signed?
Statutory declarations must be signed before an independent solicitor, notary public, or commissioner for oaths, who then witnesses and certifies the document.
Create and Serve Lease Renewal Notices With Confidence
With our platform, you can:
- Instantly generate error-free Section 25 and 26 notices.
- Check your lease’s protection or exclusion from the Act at a glance.
- Draft, sign, and store statutory declarations and contracting out documents.
- Access compliant templates and workflow guides for every step.
Protect Your Business Premises and Rights
Understanding sections 24 to 28 of the Landlord and Tenant Act 1954 is crucial for business stability and peace of mind. Poorly served notices, outdated templates, or misunderstood lease terms can risk your investment, your ability to renew, or even lead to eviction. By using Go-Legal AI, you’re equipped with modern, legally validated templates, real-time document guidance, and tools to navigate commercial lease renewals confidently and without expensive mistakes.
Ready to secure your tenancy or property? Start your journey with our smart lease renewal tools, notice generators, and AI document checker—all in one easy-to-use platform.
⚡ Get legal tasks done quickly
Create documents, follow step-by-step guides, and get instant support — all in one simple platform.
🧠 AI legal copilot
📄 5000+ templates
🔒 GDPR-compliant & secure
🏅 Backed by Innovate UK & Oxford

















































