As a business owner, you may face unforeseen circumstances that prompt you to reconsider your commercial tenancy. This can be a particularly tricky situation to work through with your landlord. Can you break your lease term early? How much will it cost you? How amenable will your landlord be?

A commercial lease is a legally binding contract with a set end date (termed the lease expiry), as specified in the lease.  If your lease is not about to end, then you need to check if your lease contains a tenant break clause, which will allow you to exit the lease earlier.  Break clauses within commercial leases are normally subject to service of notices and to certain conditions, which will be outlined in the lease.  

Depending on the original lease terms agreed upon, you may also be able to assign your lease or sublet your commercial property. 

However, if this is not an option, you will need to approach the landlord to negotiate a lease surrender, which ends the lease early.

The cost of ending your lease early is subject to negotiation between a landlord and tenant (or their representatives).  The cost will depend on how much lease time remains, the annual rent, other costs, and the parties’ negotiating strength. For example, does the landlord want the property back? Will the landlord be able to lease it again quickly?

Exiting a lease early can be tricky and costly, both in money and time.  At The Lease Negotiator, we can ensure your decision-making process is informed and optimal. We offer tailored support, advising you on the available options and assisting with negotiations with the landlord should you require it. Our aim is to make the process as simple and straightforward for you as possible, and without costing you too much money or tying you in to a long notice period.