The Automatic Continuation of Leases in Scotland – Tacit Relocation

Published byJosh Kennedy

15th May 2026

On the 10 September 2025, the Scottish Government’s latest attempt to reform the process by which commercial leases are terminated was withdrawn from Parliament before it had even completed its first stage in the legislative process. The Leases (Automatic Continuation etc.) (Scotland) Bill was an attempt to implement the Scottish Law Commission’s recommendations for reform, which was published back in 2022 in its Report on Aspects of Lease: Termination.

Currently, under Scots law, a lease will automatically continue for a further year, despite the contractual term it was signed under expiring, so long as neither party gives a ‘notice to quit’ at the end of the lease. This peculiar aspect of Scots law is known as ‘tacit relocation’ and has been the cause of many headaches for both commercial tenants and landlords, forcing both parties to remain bound by their lease obligations for a further year, with potentially significant financial and operational consequences.

Primarily, the Bill intended to clear the muddy waters of tacit relocation. It proposed replacing this often confusing and misunderstood common law system in Scotland with a statutory framework. Continuation would have applied for a set duration, the notice requirements would have been more straightforward and the parties’ obligations as a lease approached its end would have been clearer.

As it stands there is no mandatory period for a notice to quit to be served before it is deemed to be effective. The standard default rule under common law is 40 days however, if the leased property in question is over 2 acres in size and has been let out for 3 years or more, the notice period is extended to at least a year. Furthermore, if the lease contains a notice clause, as it so often does, the common law position is superseded and whatever notice provisions are stated within the lease must be followed.

The process of bringing a lease to an end is further complicated by the absence of any prescribed form of notice. There is no set wording guaranteed to prevent tacit relocation and even minor defects can render a notice ineffective. While strict compliance with the lease’s notice provisions is therefore essential, disputes over the validity of notices are regularly litigated, with decisions turning on the specific facts of each case and offering little clarity as to the formal requirements of the doctrine.

Tacit relocation may be a source of frustration for many but for the time being this convoluted yet fundamental element of Scots property law will roll on for another year…
Avoiding tacit relocation and the unintended costs associated can be difficult to navigate. Our commercial real estate team at WJM are available to help guide clients through lease negotiations, advising on notice requirements and ensuring lease endings proceed smoothly and on their intended terms.

If you wish to discuss any of the matters raised, please do not hesitate to contact our team at Commercialproperty@wjm.co.uk or by calling 0141 248 3434.