Most commercial leases are designed to tie tenants into the lease for the full term. Leases are created to ensure that both the landlord and tenant stick to their obligations. If a commercial lease has been signed and completed, the chances are that it will be difficult to get out of. However, there are ways for tenants to surrender their lease. Whether you are a tenant looking to surrender, or a landlord with a tenant who wishes to end their lease, Wildings Solicitors can advise you on the best approach on getting what you want and work towards the best possible outcome.
How can a tenant get out of their lease?
First of all, the lease should be examined to check that it has been completed correctly. There have been instances where commercial leases have not been signed, or not signed properly which can void any obligations.
If the lease contains a break clause, the tenant should follow the provisions for this in the lease. For example, the lease may state that the tenant must give 6 months’ notice in writing to a specific address.
When can you request a surrender of leases?
If the above options are not available to the tenant, they may request that they surrender the lease. Landlords are often reluctant to grant a surrender due to the difficulty in letting commercial properties, however, it is possible that an agreement can be reached.
The landlord should carefully consider their reasons for not wanting to allow their tenant to surrender, as they are entitled to ask for a premium payment in lieu of rent to cover any losses made while they re-let the premises. A common sum is one or two years rent, however, it may be worthwhile asking for a surveyor to determine this value.
