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Are you experiencing issues with your current commercial lease and looking for an exit strategy? Or maybe you're considering moving your business before the lease ends? Whatever the case, choosing to end a commercial lease before time requires careful thought.

Before initiating the early lease termination process, you must thoroughly review your commercial lease agreement and comprehend the break clauses and early termination rights to avoid financial penalties.

For expert advice on early lease terminations, contact Moeen & Co. Solicitors at 0203 959 7755. We ensure your exit is as smooth and legally sound as possible.

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Can you end your commercial property lease early?

Depending on the break clause, you can sometimes end your commercial property lease earlier than the agreed date. Get legal advice before ending your lease.

It typically requires following specific legal procedures and may involve negotiation with the landlord.

What is a break clause in a commercial lease?

A lease break clause permits early termination of a commercial lease by either the landlord or the tenant. It lays out specific terms for a valid termination.

Alternatively, the lease might give you the right to terminate early without a breach. This could be allowed for moving your business or during difficult financial times.

However, before using any early termination options, think about the legal consequences. Terminating early could lead to fines or legal disputes.

To navigate this successfully, getting advice from a commercial property solicitor is wise. Our solicitors can clarify the legal issues and help you through the procedural aspects.

Different ways to end a commercial lease early

Below is a list of 5 common ways to end your commercial lease earlier than the agreed date:

  1. Break Clause
  2. Negotiated Surrender
  3. Assignment of Lease
  4. Lease Buyout
  5. Legal Termination

1. Break Clause

Utilise a pre-agreed provision in the commercial lease allowing early termination. You should review the lease for specific conditions and notice period.

You need to provide the required written notice within the stipulated timeframe and ensure compliance with any conditions stated in the break clause.

2. Negotiated Surrender

When aiming to end your commercial lease early, it pays to look at negotiation options. Start by talking with your landlord or the property management. This initial step could lead to a mutual decision to end the lease. Such a move lessens the chance of conflicts and promises a smoother exit.

To achieve a good result for both sides, discussing the termination is important. Share your reasons for wanting an early exit and look at ways you could do it. This open dialogue lays the groundwork for reaching a beneficial agreement.

3. Assignment of Lease

Transfer your lease obligations to another business with the landlord’s consent.

Lease assignment is a legal process of transferring a commercial property lease from an existing tenant (assignor) to a new tenant (assignee). It involves passing on the remaining term of the lease, all accompanying rights, and obligations to the assignee.

4. Lease Buyout

A commercial lease buyout is an agreement between a tenant and a landlord to terminate the lease early in exchange for a lump-sum payment or a series of payments.

This payment compensates the landlord for the loss of future rent and potential expenses related to finding a new tenant.

The terms of a lease buyout are negotiated between both parties and formalised in a written agreement.

This option allows tenants to exit their lease obligations ahead of schedule while providing landlords with financial compensation.

Seek legal termination if the landlord has breached significant terms of the lease.

Consult with a commercial lease solicitor to assess your case and serve a notice of termination based on legal grounds, if applicable.

Landlords: ending a lease early without using a break clause

As a landlord, you can only terminate a commercial lease early without a break clause if the tenant fails to pay rent or breaches other lease obligations.

If the commercial lease includes a 'forfeiture clause,' you can use it in these situations to terminate the lease early.

Forfeiture of a commercial lease is a legal process by which a landlord terminates a lease and retakes possession of the premises due to a tenant's breach.

Whether it is a failure to make timely rental payments or a violation of other lease obligations, forfeiture serves as a remedy to protect the rights and interests of the landlord.

Notify your landlord to end your lease early

Before ending your commercial lease early, notifying your landlord is important.

You should notify your landlord in writing, preferably by letter or email. Written communication is solid proof and avoids misunderstandings.

Include details like ending the lease, the termination date, and early termination clauses in your notice. This helps in a smooth handover and decreases legal or financial problems.

Keep a copy of your notice and ask for receipt confirmation from your landlord. This paperwork is critical in any future disagreements.

Staying honest and professional during the notification phase is key. Good, clear communication encourages cooperation. It can even strengthen your relationship with the landlord as you wrap up your lease early.

When considering an early end to your commercial lease, legal advice is key. Our specialist commercial lease solicitors can offer crucial advice. We help you understand the steps needed to navigate the termination process.

Our experienced solicitor can shed light on possible outcomes. We can also help reduce the chances of facing legal action.

Ending a lease ahead of time can be costly. Our solicitor aids in understanding the financial impacts, which might include penalties or unpaid rent.

If talks with your landlord are needed, our skilled commercial lease solicitor can be a huge asset. We aim to secure a deal that works in your favour.

Call us today at 0203 959 7755 or fill in our online contact form for legal advice about the termination of your lease. Getting legal advice at the start can prevent major headaches later.

Contact Moeen & Co. Solicitors

For expert advice on early commercial property lease terminations, our commercial lease solicitors in Hayes, London today at 0203 959 7755.

There are several ways to contact our solicitors based in Hayes, London:

We are located near Hayes and Harlington Station on Hayes High Street, in Hayes Town Centre. 

FAQs: Ending a commercial property lease early

Terminating early could lead to financial penalties or legal action. It’s important to analyse your lease and seek legal advice. This ensures a clear understanding of the consequences of an early termination.

Yes, negotiating with your landlord for early lease termination is feasible. Explaining your needs and discussing them can lead to an agreement. This helps in avoiding disputes and making the exit smoother.

Early termination may involve paying outstanding rent or specific fees. It’s vital to ascertain all financial obligations early. This preparation is key to a hassle-free exit.

Create an exit plan by thoroughly examining your lease. Understand the termination clauses and the process. Adhering to these details helps in a trouble-free exit.

Getting legal advice before an early termination is advisable, especially if unsure of the legal implications. Our team of commercial lease solicitors in London can offer essential advice for a smooth exit.

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If you need legal advice or assistance with your legal matter, speak to our lawyer today.