It is important to note that if you decide to sublet, this option does not free you from your lease obligations. While the subtenant is legally liable to you, you are nevertheless legally responsible to the lessor for the entire tenancy agreement. You should ensure that each unterlease is formally documented and that the tenant compensates you for your actions leading you to violate your original lease. Instead of renting, the tenant may in some cases, by appointment, “reattach” or sublet the property to another tenant, Duane says. Some leases contain an early termination clause (commonly known as a termination clause). While early exit clauses are rare, they can be negotiated in a commercial lease. The lease should be checked by the lawyer, as the potential risks need to be explained, he said. If you are in a popular area, your landlord can accept an early termination if he can rent the space quickly, especially if he can rent it at a higher price or if you offer a lump sum payment for the termination of your commitments. You can also negotiate with your landlord to buy your remaining lease. This may take the form of a surety or a lump sum payment in whole or in part. Here, too, landlords are much more likely to negotiate a buy-out if there is an optimistic prospect of finding a new tenant. A buyout of office leasing will probably cost you more than a sublease, but The Self Employed offers some simple math to keep an eye on these costs.
If you want to break a lease, your first point of contact must be your lawyer. Image: Getty “The tenant can only terminate prematurely if he signs a new lease for another building in the building.” A commercial office lease should never be a consideration. The best way to avoid or, at the very least, prepare a lease is to carefully read the lease and identify all relevant information for an early lease. It is important to keep an eye on the financial penalties that may be related to the breach of a lease, how the surety comes into play and whether you have the right to sublet the property. If you`re not sure where your business will be in two or six months, you`re familiar with the options above – if the one that sounds best for you isn`t included in the lease, negotiate! Courts generally treat a commercial lease as a contract and, in the absence of a contrary provision of the lease, the principles of the contract apply 2. How a lease is interpreted and enforced depends on the conditions that will be expressly included in the lease. There are a number of reasons why you want to end an early lease. Maybe the premises are no longer suitable for your growing business, or that the company is struggling financially and you need a lease with better terms. Shorter leases are generally easier to leave than a long lease. For more information on this potentially complex topic, consult our Real Business Rescue experts.
We provide reliable and professional advice on how to proceed if you need to terminate a commercial lease prematurely, and we can offer a free same-day appointment in our extensive network of offices, which includes 78 offices across the UK and provides a partner-run service that provides immediate advice and support to the Director.