By not serving notice, the landlord and the tenant are presumed to have agreed that the Lease should continue on the original terms except for:
For leases exceeding a year, tacit relocation ensures automatic continuation for another year. Conversely, leases shorter than a year automatically renew for the original term.
Be wary, as different rules apply to leases larger than two acres, such as expansive car parks or warehouses with land. According to the Sheriff Courts (Scotland) Act 1907, a notice of no more than two years and no less than one year is required to conclude such leases.
In essence, commercial leases larger than two acres deviate from the norm, necessitating landlords and tenants to be mindful of the distinct notice period—40 clear days for standard commercial properties and a one-year notice period for those larger than 2 acres.
The Scottish Law Commission has put forth comprehensive proposals for the reform of tacit relocation:
It is important that commercial property landlords or tenants are aware of the implications of tacit relocation and how the termination date of a lease does not mean that the Lease automatically comes to an end, due to Tacit Relocation.
When it comes to commercial property leases, we understand that the process of termination or continuation can be complex and challenging. Therefore, we recommend seeking professional legal advice to ensure that all legal requirements are met, and your interests are protected. Our team of experienced Commercial Property solicitors are here to assist you in reviewing your lease and guiding you through the legal process with diplomacy, ensuring that you are fully informed and comfortable with every step. We are committed to finding the best solution and are here to offer our support. We invite you to contact us now to discuss your requirements on 0141 221 1919