Commercial lease extension solicitors in Scotland

Lease extensions under Scots law

In Scotland there is no general statutory right for a commercial tenant to extend or renew a lease. This is different from England and Wales, where many business tenants have a right to a new lease under the Landlord and Tenant Act 1954, and from residential leasehold rules, which do not apply to commercial property here.

A Scottish commercial lease ends on its agreed end date, known as the ish, only if one side gives proper notice. If an extension is wanted, it is normally agreed by negotiation and recorded in a formal document. Our solicitors can manage the whole process for landlords or tenants, from first approach to registration.

Your options as the end date approaches

• Agree a minute of extension and variationThe landlord and tenant sign a document extending the end date. It can also update the rent, rent review dates, break options and other terms.
• Grant a new leaseSometimes it is simpler to replace the old lease entirely, particularly if many terms are changing.
• Use an option in the leaseSome leases give the tenant an option to extend if notice is served in the right form and at the right time.
• Let tacit relocation applyIf no notice is given, the lease continues on the same terms. This gives little certainty to either side.
• End the leaseEither party can serve notice to quit so the lease ends on the ish, and the tenant must then leave and deal with dilapidations.

Tacit relocation and notice to quit

Tacit relocation is a Scots law rule that keeps a lease going if neither landlord nor tenant gives valid notice before the end date. A lease of a year or more usually continues for a further year, and this repeats until proper notice is given.

For most commercial leases longer than four months, notice to quit must be given at least 40 days before the end date, and the lease may require a longer period. Getting the notice wrong can mean being tied in for another year, so we check the lease and serve notices for you.

The Scottish Government introduced a Bill to reform these rules, but it was withdrawn in September 2025. For now, the existing law on tacit relocation still applies.

LBTT and registration

Extending a lease can affect Land and Buildings Transaction Tax. For leases that started after 1 April 2015, an extension can increase the net present value of the rent, so a further return and payment may be needed.

The position can differ for leases that started before 1 April 2015. In Archer v Revenue Scotland [2025] FTSTC 10, the tribunal decided that extending such a lease by a minute of extension did not create a new lease for LBTT. Revenue Scotland was given permission to appeal, with the appeal expected to be heard in June 2026, and it continues to apply its existing guidance until the appeal is decided. If you have paid, or are about to pay, LBTT on an extension like this, ask us how to protect your position.

Where the original lease was registered in the Land Register or the Books of Council and Session, the minute of extension will usually need to be registered as well.

Help for tenants of shops

Tenants of shops have a limited extra protection under the Tenancy of Shops (Scotland) Act 1949. If the landlord serves a notice to quit, the tenant may be able to apply to the sheriff for a renewal of up to one year at a time. The application must be made within 21 days after the notice to quit is served, so take advice as soon as a notice arrives.