If your business circumstances or requirements change, or rent reviews make premises too costly, it may be necessary to get out of your current commercial lease. There are several ways to do this, some of which could be suitable for your situation.
Lease termination using a break clause
A break clause can be included in your commercial lease, and gives you the right to terminate the lease on specific dates without financial penalty. If your current lease does include a break clause and the date is approaching, this can be the best way to end your lease. It is important to understand the terms of the break clause and follow the required procedures.
Terms of lease broken by the landlord
If your landlord has broken the terms of your lease, for example if they have failed to complete agreed maintenance, it may be possible to terminate your lease on these grounds.
Depending on the terms of your lease, you may be able to sublet the premises to another tenant. Your landlords consent is usually required, and they may have the right to refuse. Although this allows you to move your business from the premises, you will remain liable for the rent payments as well as any repairs and maintenance as agreed in your lease with the landlord.
You may be able get out of your current premises by assigning the lease to another tenant. This requires you to find another tenant who wants to occupy the premises and pay the rent, and the landlord must agree to the assignment and the new tenant. Unlike with subletting, you will no longer be directly liable for the rent and maintenance; however you may not be out of the lease completely and could be required to act as a guarantor for the new tenants rent payments.Request a Callback
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