Can I End A Commercial Lease Early?

Changes happen all the time. When it comes to commercial leases, circumstances can change rapidly. A commercial lease is a legal agreement. However, there are ways to end a commercial lease early if the need arises.

Whether you are a commercial tenant needing flexibility for your organisation, or a landlord managing unexpected developments, this blog will help you understand the process of ending a commercial lease early and if it could be possible for you.

There are steps that you need to take to ensure legal compliance. Taking these steps to end a commercial lease early will also help the transition to run smoothly. It is highly recommended that you speak to one of our experienced commercial property lawyers who can help advise you on the best decision or your business.

Step One: Review

You need to review the lease. This involves looking at the terms and conditions that have been outlined in the lease. Look at the notice periods stated in the agreement and ensure you comply to this where possible.

Step Two: Negotiate

Open communication is a strong starting point when looking to end the lease early. Talk about potential compromises with the other party. Is there a possibility of a negotiated settlement and what could that look like?

Step Three: Serve Notice

After checking the contract for break clauses, follow the specified procedure for giving notice. It is essential that the notice is in writing. You also need to make sure that you serve notice in a way that meets the terms stated in the lease. This is something our commercial property lawyers in Peterborough can help you with.

Step Four: Finances

There will be potential financial implications, such as a lease surrender payment for example. Ensure you are prepared for these when ending the lease. It is imperative that you document any financial settlements agreed between parties in writing. This will help to avoid any potential disputes in the future.

Step Five: Leave

You must vacate the commercial premises according to the timeline that has been agreed between parties. On leaving the premises conduct a thorough check of the property. Check for any outstanding issues that need to be addressed.

Are you considering ending a commercial lease early? Contact our commercial property lawyers in Peterborough for a free chat. We can offer advice and guidance to help the process run as smoothly as possible.