ML Guide - Lease Expiry for Tenants - Michael Lever

7.5 It is often the case that the tenant is the claimant, so even if you have protected renewal rights
before expiry of the s.25 Notice or s.26 Notice, it is nevertheless still possible to lose your renewal rights
after court procedures are underway, through not complying with the requirements.
8.0 PACT
8.1 A less-expensive alternative to the cost of going to court, the parties can agree to the use of
PACT: Professional Arbitration on Court Terms.
8.2 Devised by the Law Society and RICS, this method of dispute resolution, whereby the matter is
heard by a surveyor, barrister or arbitrator can prove cheaper, particularly for low rented premises and
where the only contentious issue is the rent.
8.2.1 Please note: the costs are not always cheaper. The courts are competitively priced, a judge is free
and there is no extra charge if the judge needs help in writing the judgement.
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9.0 WHAT HAPPENS IF YOU CHANGE YOUR MIND ABOUT RENEWING?
9.1 Since you do not have to commit to renewing before the termination date in the Notice, you can
change your mind at any time beforehand, regardless of how far negotiations have progressed.
9.2 The cheapest time to change your mind is before the date in the Notice for application to court
for renewal rights. Thereafter, it gets expensive. If, after applying to court, you serve Notice of
Discontinuance of Proceedings, then you must to give 3 months notice and you become responsible for
the landlord’s legal costs and its surveyor’s fees as well as your own costs and fees.
9.3 Please note that if you decide not to renew then the landlord is likely to serve a terminal
schedule of dilapidation, having regard to the repairing and decorating covenants in your lease. For
information, please read ML Guide - Dilapidation on Non-Renewal of Lease.