A Section 25 Notice may sound like something only a solicitor needs to worry about. However, for a commercial landlord or tenant with a lease protected by the 1954 Act, it is a crucial document. It determines what happens when the lease term comes to an end. Get the timing wrong, and you could lose months or give the other side an advantage you did not intend to provide.
The Short Version
A Section 25 Notice is served by a landlord to bring a protected business tenancy to an end. There are two types of notice.
- A friendly (or non-hostile) notice is used when the landlord is willing to grant a new lease. It sets out the terms they are proposing.
- A hostile notice is used when the landlord opposes a renewal. In this case, the landlord must state which statutory grounds they are relying on, such as redevelopment or their own occupation.
Either way, the notice has to be in the prescribed form, and it has to give the right amount of notice.
The Timing Rules
The notice must specify an end date for the tenancy that is at least six months, but no more than twelve months, after the notice is served. It also can’t be earlier than the contractual end date of the lease.
That window is where mistakes happen. Serve too early or too late, use the wrong form, get the termination date wrong, and the notice may be invalid, which means starting again and losing time. For a landlord planning to redevelop, that delay can be costly. For a tenant, a defective notice can be a useful thing to spot.
I asked Richard, our SRA-regulated co-founder, why the timing of a section 25 notice catches so many landlords out:
The rules for renewing a lease (if you’re a tenant) or refusing to renew one (if you’re a landlord) are set out in detail in the 1954 Act, and they have to be followed precisely. The wording of the notices, and the first and last dates on which they can be served, have to be exactly right. There is no margin for error: more or less right is not good enough.
It’s really a job for a specialist lawyer. Definitely not a do-it-yourself job.
Richard, our SRA-regulated co-founder
The Tenant’s Side: Section 26
Tenants aren’t only on the receiving end. A tenant who wants to secure a new lease (perhaps to lock in terms before a rent rise, or to get certainty) can take the initiative by serving a section 26 request for a new tenancy. The same kind of timing rules apply.
And if a tenant simply wants to leave at the end of the term, there’s a separate route (section 27) for giving notice that they won’t be staying. The point is that nobody should assume the lease just quietly ends on its own. It doesn’t.
What Happens After a Section 25 Notice?
After a Section 25 or Section 26 Notice is served, the parties usually negotiate the new lease terms, including the rent and lease length. If they cannot reach an agreement, either party can apply to the court. The court can then decide the lease terms and set an interim rent for the period in between. Most cases settle long before that, but the deadlines around court applications are strict, so they need watching.
Why a Section 25 Notice Catches People Out
The 1954 Act renewal process rewards the side that’s organised and on top of the dates. It’s not complicated, exactly, but it’s unforgiving about timing and form. A diary note a year ahead of a lease expiry is worth a lot more than a scramble three weeks before.
Frequently Asked Questions
A notice served by a landlord to bring a business tenancy protected by the 1954 Act to an end. It comes in two forms: a friendly notice proposing terms for a new lease, or a hostile notice opposing renewal on one of the statutory grounds. Both have to use the prescribed form.
A Section 25 Notice must give at least six months’ notice, but no more than twelve months. The termination date cannot be earlier than the contractual end date of the lease. lease.
A notice in the wrong form, or with the wrong dates, may be invalid. The landlord has to start again, which costs time. For a tenant, spotting a defective notice can be a real advantage.
Yes. A tenant can serve a section 26 request for a new tenancy, with similar timing rules. A tenant who simply wants to leave at the end of the term gives notice under section 27 instead.
Either side can apply to the court, which can set the terms of the new lease and decide an interim rent for the period in between. Most cases settle before that stage, but the court deadlines are strict.
No. The 1954 Act covers England and Wales only. Scotland and Northern Ireland have their own rules for commercial tenancies.
Aqqord handles commercial leases from end to end (including renewals) with documents drafted by senior solicitors and pre-negotiated to be fair to both sides. For a fresh lease or a renewal, you can enter your terms and preview a full draft for free at aqqord.com. There’s nothing to pay until both parties sign, and it’s £375 plus VAT per party rather than separate solicitors on each side.
