Commercial Lease Expiry: A Timeline of What Needs to Happen and When

A commercial lease expiry is one of the most deadline-driven events in a business's lifecycle. The Landlord and Tenant Act 1954, the notice requirements of break clauses, and the practicalities of dilapidations negotiations and property searches all create a series of fixed points that cannot be missed without serious consequences. This guide sets out the full timeline — working backwards from the lease end date — so that nothing is left to chance.

---

18 Months Before Expiry: Strategic Review

The decision point most businesses miss.

At 18 months out, the formal legal deadlines are still some way off, but this is the most important point in the timeline — because the decisions made here determine everything that follows.

• Confirm the exact lease expiry date in writing with your solicitor — do not rely on your own records alone
• Identify whether your lease is protected under the Landlord and Tenant Act 1954 or contracted out
• Identify any break clauses and their exact notice requirements and conditions
• Conduct a strategic review: does the current space still serve the business? Would you renew if offered favourable terms?
• Begin an initial assessment of the market — what is available, at what rents, and in which locations?
• Instruct a RICS-qualified surveyor to advise on the current market rent and your likely dilapidations exposure

Why this matters: If you want to relocate, you need 12–18 months to find suitable space, negotiate terms, complete legal due diligence, fit out, and move. Starting at 18 months gives you that window. Starting at 12 months gives you very little margin for error.

---

12 Months Before Expiry: Active Search and Dilapidations Assessment

The property search should be under way. Dilapidations planning begins.

• Instruct a commercial property agent or post your requirement on a reverse marketplace to begin receiving matching options
• Shortlist properties and begin visiting — aim to have a preferred option identified by 9 months out
• Commission a dilapidations assessment from a RICS-qualified surveyor — understand your financial exposure at the current premises before you are in a negotiation with the landlord
• If you are considering renewing rather than moving, instruct a surveyor to advise on the appropriate market rent for a renewal and your negotiating position
• If your lease has a rent review approaching before expiry, serve the relevant counter-notice if required and instruct a surveyor to handle the review

Dilapidations at this stage: A dilapidations survey at 12 months gives you time to carry out the remedial works yourself — which is almost always cheaper than paying the landlord's estimated cost of doing them — or to budget accurately for a cash settlement.

---

9 Months Before Expiry: Heads of Terms and Statutory Notices

The legal process for renewal or exit begins. Statutory deadlines start to apply.

If you intend to leave

• If your lease is protected by the 1954 Act, the landlord may serve a Section 25 Notice on you at any point from 12 to 6 months before expiry, stating whether they will or will not oppose renewal. If they have not served one, you can serve a Section 26 Request for a new tenancy to formally initiate the process
• Seek legal advice on the statutory procedure — missing response deadlines under the 1954 Act can result in losing statutory rights
• Confirm you are not inadvertently holding over (remaining in occupation past expiry) without a clear legal basis for doing so

If you intend to renew

• Begin negotiating renewal terms with the landlord — rent, lease length, break clauses, and any landlord's works
• Instruct your solicitor as soon as Heads of Terms are agreed
• Do not allow the lease to expire without either having completed a renewal or having a clear legal basis for continuing in occupation

For leases with break clauses

Critical: If your lease contains a break clause exercisable before expiry, calculate the break notice deadline now and diarise it immediately. Most break clauses require 6 months' written notice. A notice served one day late is a void notice — the break right is lost entirely and the lease continues.

• Confirm the break notice requirements — form, method of service, and recipient — with your solicitor
• Confirm what conditions attach to the break: is rent required to be fully paid? Is vacant possession required?
• Plan the timing of works and fit-out removal to ensure vacant possession can be given on the break date

---

6 Months Before Expiry: New Lease Exchange and Fit-Out Commencement

By this point, your new premises should be agreed and the legal process well advanced.

• Exchange contracts or complete on the new lease — do not leave this until less than 3 months before you need to vacate
• Obtain landlord's consent for fit-out works at the new premises and appoint a contractor
• Commence fit-out works — allow contingency in the programme for delays
• Order IT and telecoms infrastructure for the new premises — lead times can be 6–12 weeks
• Begin staff communications about the move and new address
• If serving a break notice, this must be served no later than the deadline specified in the lease — instruct your solicitor to serve it formally and obtain proof of service

---

3 Months Before Expiry: Operational and Handover Preparation

The move is approaching. Operational readiness and handover logistics take over.

• Confirm the fit-out programme is on track — escalate any delays with the contractor immediately
• Begin the notifications process — HMRC, Companies House, suppliers, clients, and insurers
• Set up mail redirection from the old address
• Arrange the physical removal — obtain quotes from at least three commercial removals companies
• Confirm the dilapidations position with your surveyor — are you carrying out works, or settling in cash?
• Arrange a pre-handover inspection at the current premises with your surveyor
• Notify the landlord of your intention to vacate on the agreed date in writing
• Confirm business rates notifications with the local authority for both addresses

---

1 Month Before Expiry: Final Checks

• Confirm utilities at new premises are in your name from the occupation date
• Confirm all IT systems will be operational from day one at the new premises
• Brief all staff on move logistics — date, arrangements, new address, parking, and access
• Complete any outstanding remedial works at the old premises
• Arrange professional cleaning of the current premises

---

Handover Day: Vacating the Current Premises

• Return all keys and access passes to the landlord or their agent on the agreed date
• Obtain written confirmation of key return and premises handover
• Take meter readings for all utilities and notify providers
• Photograph the property at the point of handover
• Ensure all equipment, furniture, and belongings have been removed — "vacant possession" means exactly that

---

After Handover: Closing Out the Old Lease

• Respond promptly to any dilapidations schedule served by the landlord — typically served within 3–6 months of handover
• Instruct your surveyor to negotiate the dilapidations settlement — the landlord's initial schedule is rarely the settlement figure
• Retain all documentation relating to the lease, the handover, and the dilapidations settlement for at least 6 years
• Confirm the lease is formally ended — do not assume that handing back the keys discharges all liability

---

Frequently Asked Questions

What is the Landlord and Tenant Act 1954 and how does it affect my lease expiry?

The Landlord and Tenant Act 1954 gives qualifying commercial tenants the statutory right to remain in occupation after lease expiry and to request a new lease on broadly the same terms. A landlord can only refuse renewal on specific statutory grounds, such as redevelopment or owner-occupation. If your lease is protected by the Act, you cannot simply be required to leave at expiry without the landlord following the statutory procedure. If your lease was contracted out of the Act, you have no automatic right to remain after expiry.

What happens if I miss the break notice deadline?

If you miss the deadline for serving a valid break notice, the break right for that date is lost. You remain bound by the lease until the next break date (if one exists) or until lease expiry. Courts have consistently refused to grant relief for late break notices, regardless of the circumstances. The break notice deadline must be treated as an absolute deadline.

What is a Section 25 Notice?

A Section 25 Notice is a formal notice served by a landlord under the Landlord and Tenant Act 1954, notifying a protected tenant of the termination of their existing tenancy and stating whether the landlord intends to oppose the grant of a new tenancy. It can be served between 6 and 12 months before the proposed termination date. A landlord who wishes to oppose renewal must state the statutory ground on which they rely.

How long do dilapidations negotiations typically take?

Dilapidations negotiations typically take between 3 and 12 months after the lease end date, depending on the complexity of the claim and how far apart the parties' positions are. The landlord's initial schedule is usually served within 3–6 months of handover. The tenant's surveyor then prepares a response and negotiations follow. Many dilapidations claims settle without litigation; where parties cannot agree, the matter can be referred to independent expert determination or the courts.

Can I renew my lease on different terms from my existing one?

Yes. A lease renewal — whether agreed commercially or determined by the court under the 1954 Act — does not have to mirror the existing lease. Rent will be set at the current open market level. Other terms, including lease length, break clauses, repairing obligations, and permitted use, are negotiable, though if parties cannot agree they may be determined by the court on terms it considers reasonable.

---

If you are approaching a lease expiry and considering your options, post your requirement on REmatch — describe what you need and where, and landlords and agents with matching space will respond directly. It takes a few minutes and costs nothing.