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  • What To Do When Your Office Lease Is Expiring

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  • A lease expiry rarely arrives quietly. It sits in the background for years, then suddenly becomes one of the most important decisions your business has to make. 

    Your workplace is one of your biggest operational costs. It shapes how your teams work, how your culture shows up, and how your business presents itself to clients. By the time your lease is approaching expiry, one question sits at the centre of everything: Should you stay where you are, or move somewhere new?

    The stay vs go debate is one that every business grapples with because it defines your next chapter. Staying gives you the chance to reshape and improve your current space. Moving gives you the opportunity to reset and design a workplace around how your business operates today.

    Both routes can deliver strong outcomes. The difference lies in how early you start and how clearly you approach the decision.

    This article breaks down what to do, when to do it, and how to navigate your decision with confidence.

  • What to Do When Your Office Lease Is Expiring

    Commercial lease expiries affect every business that rents office space. Make sure you are on top of your lease 18-24 months in advance.

    Read more
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  • When should you renew a commercial lease?

    You should consider renewing your commercial lease 12 to 24 months before it expires. A lease event is not something that should catch you by surprise, it is an important date that you should be aware of.

    Don’t put it off as once you begin working on your lease renewal, you may find that things take longer than expected and you could run out of time. The more time you allow to finalise your renewal strategy, the better the outcome for your business.

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  • Understanding your lease terms

    Landlord and Tenant Act 1954

    It is important to understand the details of your lease and how it affects your status as a tenant. Under the Landlord and Tenant Act 1954, provided your lease is protected by the Act, your lease will not end at the expiration of your contractual term. The Act means that the lease is still in effect until either the landlord or the tenants formally serve notice to terminate the lease agreement.

    Security of Tenure

    There should also be a security of tenure clause within your lease. This clause is there to protect the tenant by giving them the right for their lease to automatically renew with similar terms to their previous lease terms. It acts as a safeguard should you be in a position where you have not agreed on a new lease or found a new property to move to.

    Section 25 and 26 Notices

    When a tenant wants to renew their lease, they need to serve a Section 26 Notice. This is a proposal of the new lease terms but it must be served to the landlord within 6-12 months of the lease expiry – be sure to check your specified dates.

    Once this has been submitted, the landlord has two options. They can accept the notice or reject the new terms by referencing the items they are opposed to. There must be at least one item given as the reason for the rejection of the proposed terms.

    In the circumstances that a landlord has already served a Section 25 Notice, which advises the tenant of their intention to terminate the lease at the end of their contractual term, a tenant cannot serve a Section 26 Notice. This scenario may occur if a landlord intends to refurbish a certain floor or the entire property or wish to increase their rates.

  • What to consider when moving office?

    If you have decided that you don’t want to renew your current lease and an office relocation is best choice for your business, there are some important milestones to use as a guide. Tracking your progress against a timeline will help you maintain progress and stay on top of the relocation process.

     

  • Who needs to be involved?

    Building your team is a key part of managing the process around your lease expiry. You will need strong support from agents, contractors and legal advisors throughout the process to stay informed and make sure you are fulfilling your commitments.

    Landlord

    Regardless of your decision to stay or go, your landlord will be reviewing their options for the building and your space. Whether it’s increasing the rent at the renewal stages or redeveloping the entire building, approach your landlord early (up to 24 months before lease expiry for large-scale projects) to find out their long-term goals. Keep an open dialogue with your landlord as fluctuating economic and market conditions will influence their overall objectives.

    Commercial agent

    Commercial agents have the knowledge and experience of the property rental market and desirable locations. Depending on the size of your organisation and current market conditions, you should begin this process 18 months before your lease expiration. Their expertise will help locate properties which are aligned with your objectives.

    Your agent’s role doesn’t cease with securing the new property. A team of competent chartered surveyors should provide site surveys, condition schedules and confirm the legal requirements of the potential workplace meet the required standards and your own business needs. Your surveyors will work alongside you from 12 months in the process through to your move-in date.

    Office design and fit out partner

    No matter the size of the project, finding the right fit out partner to strategise and design your workplace is essential. If you’re renewing your lease, you will likely want to refresh your space with an office refurbishment. If you are moving to a new space, you will need someone to design the new office. An office design and fit out company will help you with both options and can advise you on the considerations for staying, renegotiating and relocating to a new space. Usually, you will partner with a fit out company from about 12 to 6 months before your lease expiry, although it may be longer depending on the scope of work.

    Financial and legal advisors

    Renting commercial property is a major financial decision so if you are unsure of the financial implications of your space or want to review your real estate costs, you should engage a financial team 24-18 months before your lease expires. Ask them to draw up a budget forecast and review your current real estate costs to ensure they are aligned with your overall business strategy and budget.

    To ensure you don’t incur any extra costs while navigating your lease, it is recommended to seek legal advice. Commercial property transactions can be complicated and consulting with commercial property solicitors at the start of the process (18 months prior to lease expiration) could help save you money. They will advise on your lease obligations in terms of the notice period, rent review and dilapidations which may also provide you with the peace of mind that you’ve fulfilled your commitments.

  • Whether you are planning to renew or relocate, your lease expiry is the time you need to have decided by, not when you should start deciding. While it may be two years to 18 months away, give yourself the best opportunity possible by starting an early conversation and getting the ball rolling.

  • The Stay vs Go Guide

    Is your lease due to expire? Download The Stay Vs Go Guide to learn more.

    Download Now
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    • Lease expiry FAQs

    • Arrow Icon When should I start planning for a lease expiry?

      You should start planning 18–24 months before your lease expires to allow time for strategy, negotiation, and delivery.

      Arrow Icon Is it cheaper to stay or move office?

      Staying is often cheaper upfront, but moving can deliver better long-term value depending on your space and business needs.

      Arrow Icon What is a Section 26 notice?

      A Section 26 notice is served by a tenant to request a new lease, typically between 6 and 12 months before expiry.

      Arrow Icon What are dilapidations?

      Dilapidations are the costs associated with returning your office to its original condition at the end of your lease.

      Arrow Icon How long does an office relocation take?

      Most office relocations take between 9 and 18 months from initial planning to completion.

  • Contact us to find out what steps you should be taking towards your lease expiry

    020 7553 9500

    info@oktra.co.uk

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