9th Mar 2015

Know Your Lease…..

When it comes to business premises, make sure you know what you’re letting yourself in for as leases can tie you in for a long time. If you are looking to get out early, you may want to consider the following:-

Some leases contain a tenant’s break option. This can often only be exercised on a fixed date and subject to giving a certain amount of notice. If you fail to exercise the break within this notice period then you would lose this right. Also, there can be other conditions attached to the break and landlords can refuse to accept a break notice if you fail to comply with any of these conditions e.g. there is some rent outstanding, the redecoration or repair requirements have not been done to the landlord’s satisfaction.

Please note that once a break notice has been served, it can’t then be withdrawn unless the landlord agrees.

Usually, the lease allows you to find someone to take the lease off you, an assignment as long as you obtain the landlord’s consent. The lease will set out the requirements for any transfer. Often, as an outgoing tenant, you would have to give a guarantee for the new tenant, so be aware that you would be ‘on the hook’ until the lease would have ended.

It is of course always better to negotiate the right deal for you at the beginning, but where you are looking for ways out of their lease, you should check the wording of the lease carefully.

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