Renew a business tenancy in Northern Ireland

Most tenants who run a business from rented premises in Northern Ireland have a statutory right to stay on when the lease ends and to ask for a new one. Your landlord can end the tenancy only by following the procedure in the Business Tenancies (Northern Ireland) Order 1996.

If your landlord serves a notice to determine

Your landlord ends a protected tenancy with a notice to determine in the prescribed form. It must name the date the tenancy is to end, and be served not more than 12 and not less than 6 months before that date. The date cannot be earlier than the date the tenancy would have ended by the passing of its term.

The notice must say whether the landlord is willing to grant you a new tenancy. If so, it must set out their proposals for the property, rent, length and other terms. If not, it must say whether they will oppose your application to the Lands Tribunal and on which of the grounds in article 12 they rely.

If you request a new tenancy

You can ask for a new tenancy if your lease is for a fixed term of more than 9 months, whether or not it has continued past its end date, or for a term of more than one year and then from year to year. The same applies to a short term that is protected because of your length of occupation.

Serve a notice in the prescribed form on your landlord. It must propose the property, rent, length and other terms, and name a start date not more than 12 and not less than 6 months after the request. For a fixed-term lease the start date cannot be earlier than the date the lease would otherwise have ended or you could have ended it.

You cannot make a request if your landlord has already served a notice to determine. Within 2 months of your request, your landlord must tell you either that they will grant a new tenancy on your terms, or on terms you agree, or that they will oppose your application and on which grounds.

If you want to leave

If the term would have ended and you do not want the tenancy to continue, give your landlord notice not later than 3 months before that date. Once the tenancy is continuing, you can end it on any date by giving at least 3 months' notice.

Applying to the Lands Tribunal

If you and your landlord cannot agree, either of you can apply to the Lands Tribunal for an order. If the landlord served a notice to determine, apply between the date of service and the date the tenancy is due to end. If you made a request, apply between the date of your landlord's reply and the start date you asked for. The Tribunal can extend either time limit, even after it has passed. Only one of you can apply, and your landlord cannot withdraw an application unless you consent.

If an application is made, your tenancy carries on until 3 months after the application is finally disposed of, including any appeal, or until a date the Tribunal directs. The Tribunal can change the rent for that period and order interest on rent in arrear.

What the Tribunal decides

The Tribunal refuses a new tenancy if your landlord proves one of the grounds. If a landlord fails on the alternative accommodation, sub-letting or redevelopment grounds but would have succeeded on a date up to a year later, the Tribunal can say so and, if you ask within 14 days, substitute that later date.

If no ground is proved, the Tribunal orders a new tenancy:

• the property is the premises you occupy, unless your landlord requires the whole property in your current tenancy to be included
• the length is what you and your landlord agree, or what the Tribunal thinks reasonable, up to 15 years
• the rent is what you and your landlord agree, or the open market rent for the premises. The Tribunal disregards the effect of your occupation, the goodwill of your business, and improvements you made other than under an obligation to your landlord
• other terms are agreed, or set by the Tribunal having regard to the current tenancy and all relevant circumstances

You can apply to the Tribunal within 14 days of the order to revoke it. If it is revoked, the Tribunal can let your current tenancy continue for a period that gives your landlord a reasonable chance to relet, and the landlord can claim compensation for damage or loss caused by your withdrawing or failing to pursue your application.

Compensation if you have to leave

If your landlord serves a notice on the sub-letting, redevelopment, own-occupation or public authority grounds, and you then leave because you do not apply, withdraw your application or the Tribunal rules for your landlord, you can recover compensation from your landlord. It is the net annual value of the premises in the valuation list when the notice was served, multiplied by a figure that rises with the length of time you have occupied the premises for your business:

• 0.31 for up to 5 years
• 0.63 for more than 5 and up to 10 years
• 0.94 for more than 10 and up to 15 years
• 1.26 for more than 15 years

A successor to the business you took over can count the earlier occupation. You cannot claim if your landlord is a public authority, you knew that when you took the lease, and your agreement ruled out compensation.

The Tribunal can also order your landlord to pay you for loss if it refused you a new tenancy because of a misrepresentation or concealed facts, or if your landlord's stated intentions on the sub-letting, redevelopment or own-occupation grounds were not carried out without reasonable excuse. Deceiving the Tribunal is an offence.

Agreements that try to take away your rights

Any term of your lease or other agreement that stops you making an application or request, ends your tenancy if you make one, penalises you for it or reduces your compensation is void. An agreement to surrender a protected tenancy is valid only if you are in possession when it is made and the Lands Tribunal approves it.