Commercial lease renewal for an English company: what rules apply in 2026?

An English company is reaching the end of its lease: can it demand a renewal? The answer depends primarily on the property's location. If the premises are in France, the French commercial lease statutes must be examined.

Renewing a commercial lease for an English company in France: what are the conditions?

The English nationality of a company does not, in itself, prevent it from benefiting from the right to renew a French commercial lease. This right depends on the status of the business operated on the premises and compliance with the conditions set out in the Commercial Code. It is also necessary to precisely identify the lessee : is the English company signing the lease in its own name, or is it a legally distinct French subsidiary?

Does an English company have the right to renewal?

To claim a renewal, the tenant must, in particular, be the owner of the business operated on the premises, meet the applicable registration requirements, and have effectively operated that business for the three years preceding the relevant date, subject to specific situations provided for by law.

Paying rent or physically occupying the premises is therefore not always sufficient.

For a company established in the United Kingdom, French registration requires priority verification. It is necessary to determine whether the establishment operated on the premises is properly listed in the Trade and Companies Register when such registration is required.

Registration of the company with Companies House confirms its existence in the United Kingdom, but does not replace the registration required to benefit from French status. This condition is assessed in particular on the date of the notice to vacate issued by the landlord or the renewal request made by the tenant.

The operation must also correspond to an actual business activity on the premises. If the lease concerns an address that is no longer in use, if the business has been relocated, or if another company is now operating the business, you must clarify the situation before initiating the procedure.

The company mentioned in the lease, the one operating the business, and the one requesting the renewal must be precisely identified.

Who should request the renewal and when?

The landlord may take the initiative by issuing a notice to vacate with an offer of renewal at least six months before the expiration date, via a judicial officer. Their offer may open a discussion regarding the rent for the new lease. The tenant may accept the renewal while still contesting the proposed amount: disagreement over the price does not necessarily mean they refuse to continue the lease.

If the landlord does not issue a notice to vacate, the tenant may send them a renewal request within the six months preceding the end of the lease. It may also be submitted at any time if the lease continues beyond its expiration date through tacit renewal.

The request must comply with the formalities and requirements mandated by Article L. 145-10 of the French Commercial Code ; it may, in particular, be served via registered letter with acknowledgment of receipt or by a judicial officer (commissaire de justice).

The landlord then has three months to notify a reasoned refusal. If they remain silent, they are deemed to have accepted the principle of renewal. This does not necessarily mean that the parties have agreed on the new rent : this point may remain to be negotiated or determined according to the applicable procedure.

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Renewing a commercial lease for a British company in France: what happens in the event of a disagreement?

A disagreement may concern the right to renewal itself, the amount of the rent, or the consequences of a landlord's refusal. These issues must be addressed separately their effects and timeframes are not identical.

What happens to the lease if no action is taken?

If the landlord does not give notice and the tenant does not request a renewal, the commercial lease is tacitly extended. The tenant may continue to occupy the premises and adhere to the existing lease, notably by paying rent and charges. However, this does not constitute the automatic conclusion of a new nine-year lease: it is the initial contract that continues beyond its expiration date.

This extension can have financial implications. When the total duration of the lease exceeds twelve years, the rent cap upon renewal may be waived in favor of setting the rent at the market rental value, subject to the rules applicable to the case.

A business that wishes to keep its premises therefore has an interest in tracking the expiration date and the actual duration of the lease, even if relations with the landlord remain good.

Can the landlord refuse renewal?

Yes. Under French law, the landlord may refuse to renew a commercial lease.

If the tenant is entitled to protected status, this refusal generally triggers the payment of an eviction indemnity, intended to compensate for the loss of the premises and, depending on the circumstances, the resulting impact on the business. The amount depends on factors specific to the business and the premises.

There are cases where no indemnity is due, particularly if the landlord can prove serious and legitimate grounds against the tenant. Failure to register or a lack of actual business operations can also jeopardize the right to renewal itself.

The validity of the refusal cannot be assessed based on its wording alone: the lease, the business activities, and the company's supporting documentation must be examined.

If the tenant wishes to contest a refusal or claim an eviction indemnity, they must be particularly mindful of the two-year limitation period applicable to legal action. Waiting until the end of amicable discussions without adhering to this deadline may jeopardize their rights.

Renewing a commercial lease for a British company in the UK: is the lease protected?

For premises located in England or Wales, the framework is different. The starting point is to determine whether the lease benefits from protection under the Landlord and Tenant Act 1954The rules described here should not be applied as-is to premises located in Scotland or Northern Ireland.

What protection does the Landlord and Tenant Act 1954 provide?

When a commercial lease falls under the 1954 Act, the expiry of its contractual term does not, in itself, generally end the tenant's right to occupy. The lease continues under the statutory framework until formal steps are taken to end the arrangement or lead to a new lease.

This mechanism provides the tenant with security of tenure and the right to request a new lease.

The landlord may initiate the process by serving a section 25 notice. This document specifies, among other things, whether the landlord agrees to a new lease or intends to oppose it.

The tenant may, for their part, take the initiative by serving a section 26 request. If the landlord refuses a new lease, they must cite a statutory ground. Depending on the circumstances, these grounds may include certain tenant defaults, the provision of suitable alternative premises, plans for redevelopment, or the landlord's intention to occupy the property themselves. Disputes may be referred to the court.

The date on an English notice must be taken seriously. Parties may negotiate a new lease, but ongoing negotiations do not exempt you from checking whether any legal steps are required before the applicable deadline expiresThe specific terms must be reviewed based on the notice received and the lease in question.

What is a contracted-out lease?

The parties may, under certain conditions, agree before entering into the lease to exclude the protection related to renewal. This is referred to as a contracted-outlease. The existence of a clause in the contract is one element to examine, but it is also necessary to verify that the required exclusion procedure has been followed.

If the exclusion is valid, the tenant does not have the statutory right to a new lease granted by the excluded provisions. They may still negotiate with the landlord, and the contract may provide for a separate renewal option.

Therefore, one should not conclude that the lease will be automatically renewed, nor that all possibility of remaining in the premises has disappeared : the answer depends on the wording of the lease and the documents signed when it was put in place.

Any potential compensation also follows a different logic than that of French law. Under a protected lease, statutory compensation may be payable when renewal is refused for certain reasons provided by law, notably in cases of redevelopment or landlord occupation.

It is generally calculated by reference to the rateable value of the property, with specific rules applying once the occupancy reaches fourteen years. This is not a French eviction indemnity calculated based on the total loss suffered.

Renewing a commercial lease for a UK company: what are the differences between the two countries?

This table only provides a high-level overview. A French lease that does not meet the statutory requirements, much like a UK lease validly excluded from the 1954 Act, may lead to a different outcome than what would be expected based solely on its expiration date.

Which documents should you check before initiating a renewal?

Before sending a request or responding to the landlord, you must gather the information needed to classify the lease and calculate the deadlines:

• The lease and its amendments, to identify the tenant, the premises involved, the expiration date, and relevant clauses.
• Previous correspondence, including any notice to vacate, renewal offer, section 25 notice , or any response from the landlord.
• For a French property, proof of business registration, ownership of the business assets, and evidence of active operation.
• For premises in England or Wales, documents relating to any exclusion from the 1954 Act and any contractual renewal options.

Renewing a commercial lease for an English company is therefore a two-step process: locate the property, then verify the lease status and any steps already taken. For French premises, registration and operation of the business are the deciding factors.

For English or Welsh premises, you must first determine whether statutory protection has been maintained. In both cases, conducting an analysis before the deadline provides more time to negotiate rent, secure the right of occupancy, or respond to a refusal.