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D4
Renew vs Redevelop
When a lease ends you can renew to keep the income, or oppose renewal and redevelop for a higher-value building. Weigh income against uplift and risk.
Compare your options
Renew the lease
Pros
- Income continues with no void
- No capital outlay
- Simple and low risk
Cons
- Only a limited rent uplift
- Building keeps ageing
- MEES pressure remains on older stock
Best for: Well-let buildings with a decent rent and no pressing need to change.
Redevelop or refurbish
Pros
- Higher post-works ERV and value
- Capital allowances on new works
- Chance to fix MEES and modernise
Cons
- Void during works
- Build cost and planning risk
- Must prove genuine intention to oppose renewal
Best for: Tired buildings where the uplift justifies the void and spend.
Worked scenarios
Secondary office, lease ending, tenant wants to stay
| Option | Outcome |
|---|---|
| Renew | Keeps income, but the building stays exposed to MEES and obsolescence. |
| Redevelop | Oppose on ground (f) if you have a genuine, evidenced scheme. |
Decision checklist
- Run a development appraisal to test whether the uplift justifies the scheme.
- If opposing renewal, build genuine, settled evidence of your redevelopment intention.
- Model the void, build cost, finance and the higher post-works ERV.
- Check planning and any change of use needed.
- Factor the MEES position of the existing building.
Relevant tools
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