In an earlier blog, one of the first things I suggested you do whilst considering whether to move is to check your existing lease. And the three important pieces of information you should be checking for are
- Is your lease contracted out?
- When does the lease end?
and - What liabilities do you have when vacating (such as repairs, decoration)?
In a recent case, the importance of knowing this has been demonstrated, I had requested this information from a new client of mine. They couldn’t find a copy of the lease, so as a last resort requested a copy from the landlord. The landlord’s agent replied to say, the lease ends in less than 3 weeks (and not the two months my client thought they had left), the lease is contracted out and the landlord has other plans for the building and does not want to renew the lease.
From a legal perspective, as the lease is contracted out, my client has to comply and vacate the property by the lease end. Whilst very serious, the client is fortunate in many ways, in that they are an office occupier and during the pandemic, all of their staff have been working remotely. They have got some inconvenience, in having to vacate quickly and will have to put their furniture into storage for a short while, but isn’t going to be catastrophic. Whereas, if this had happened to a manufacturing business (or a business less able to move quickly), this would have put the business at significant risk.
This should be a reminder for businesses and leadership team, to have a copy of your lease, know the key information and have the key dates diarised.
