The rights and obligations will be set out in your lease which is a private contract between landlord 
and tenant. However, where there is a lease of over 21 years the tenant(s) have various additional 
rights under legislation set out mainly in the Leasehold Reform Housing and Urban Development Act 1993. 
These additional rights include:

• The right to a lease extension of 90 years. The landlord must be compensated for the diminution in the value of his interest.

• The right for tenants in certain circumstances to buy the freehold of their property.

• The right to the proper management of their property by the landlord and the right to information concerning management, and the right under certain circumstances for tenants to take over the management of their property.

• The right to vary the terms of the lease in the interest of good estate management.

Where the landlord and tenant cannot agree on the terms of any variation in the lease, the matter is referred to the Leasehold Valuation Tribunal.

Tenants should consider obtaining a lease extension when the lease has less than 70 years remaining. Otherwise the saleability of the lease may be affected.

BUSINESS LEASES

REPAIRS
The responsibility for the cost or repairs will be set out in the lease. In multi-tenanted buildings the landlord usually carries out the works and recovers the cost through a service charge or on an ad hoc basis. In self-contained buildings the tenant usually carries out the works.

Repairs and decorations may not necessarily need to be carried on the exact basis set out in the lease. For example the Repairs Act 1938 gives relief to tenants in respect of repairs where there is more than 7 years unexpired. Similarly the lease may require internal decorations to be carried out on a regular basis but this will not usually be required until the end of the lease.

RENT REVIEW
It is important for landlords to follow the proper Notice procedure set out in the lease. Thereafter new rents are generally agreed by reference to rents paid in comparable premises. Access to the most information of rents paid for similar properties will generally help to achieve the best negotiated settlement. Failure to agree the new rent will result in the matter being referred to arbitration on the basis set out in the lease.

LEASE RENEWAL
The landlord & Tenant Acts 1927 & 54 provide Security of Tenure for tenants. Tenants may usually renew their leases under these provisions at market value and discounting the extra value attributable to tenants improvements. In the cases where landlords are able to avoid renewing leases compensation is generally available.

The legislation sets out a complicated procedure which must be followed by each party in order to preserve their rights. Such procedure should therefore be planned well in advance - preferably two years.

The terms of the new lease can be agreed by the parties. Failing this the legislation sets out the terms of the new lease and the new rent will be agreed by the Court if it cannot be agreed between the parties.