Condition on renewal of lease
I am a landlord who has leased my property for 20 years commenced from 03/1996 to 06/2016. on the registered lease agreement, it was mentioned that the lease can be renewed for further 20 years if mutually agreed. Now lease expiration is around the corner, I wish not to lease for further period since i am planning on selling the property. My question is, whether I am legally bind to compulsory lease the property for further 20 years since it was mentioned in the original lease agreement. or do I have the option to terminate since it was mentioned "mutually agreed basis". please advise me on this regards.
Thank you for your time
Asked 1 year ago in Property Law from Coimbatore, Tamil Nadu
1) Lease can be renewed only by mutual consent
2) you are not bound to renew the lease
3) you can on expiry of lease period ask lessee to vacate the premises as you dont want to renew the lease
1) You are bound by the clauses incorporated in the lease Agreement. If the Agreement stipulates that the lease can be renewed for a further term of 20 years subject to mutual agreement and you dot agree, you are under no compulsion to renew it legally.
2) Although it is not mandatory under circumstances you may send the party a notice reminding them of the term of the lease coming to clause and revealing your intentions to sell the property. You may as well offer to sell the property to them if they are willing to purchase it for a price you can agree upon. if you do so about two months prior to the expiration of the Agreement you would make clear your bona- fide intentions.
Since the renewal for further 20 years will depend on mutual consent of both parties, if you don't agree the further renewal is not possible.
After the expiry of the lease period you can send eviction notice for vacating the same.
However you must send prior notice before sending eviction notice stating your unwillingness to renew the lease further.
1. You are not obligated to renew the lease after the expiry.
2. Issue a legal notice for eviction to the lessee on the expiry of the lease if he does not vacate on his own accord.
You have an answer in your own question i.e., "mutually agreed basis". Therefore if you are not willing to renew or extend the lease period, he may have to vacate the premises on expiration of the lease period.
However to be on the safer side,you may issue a notice to him just one month before the expiration period to vacate the premises on due date of expiration of the lease agreement failing which you may approach court with an eviction suit against him. This will safeguard your interest properly.
Hi Pradeep Sir, you don't worry about the same. You are entitled to not renewal for further period. It is purely depend upon you. You should terminate after expiration of the said term/period by issued a legal notice for the same as well as public notice in local daily news paper for the same and you have to sell the said property as you like.