Owner: A tenant will require rights of renewal of the Lease if there for five years or more. An artificial short break say at 4 years 11 months is not sufficient to break the tenant's right to a new Lease if the tenant then goes back into possession and continues beyond 5 years.
If you are doing a long term Lease you need to take great care and understand the provisions of the Lease you are putting in place as it will govern the relationship between you and the tenant for a period of 21 or 35 years or more. Your initial tenant will have rights to sell on or assign the Lease and possibly a right of Sub Lease. You would also need to check service charges and rates to fully understand the annual cost of the premises. Under new 2008 legislation, any tenant with separate, independant legal advice can take a lease for 5 years or more and at the same time waive his right to a new lease. Prior to this legislation only office tenants could do this.
Tenant: You will also need to be aware of all the above matters, which concern an owner of property. Will you be able to change the use of the property without difficulty if you find you need to change your trade or business?