{"id":1611,"date":"2022-01-11T02:57:25","date_gmt":"2022-01-11T02:57:25","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=1611"},"modified":"2022-06-28T06:43:10","modified_gmt":"2022-06-28T05:43:10","slug":"how-can-i-get-out-of-my-commercial-lease-early","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-lease-property\/how-can-i-get-out-of-my-commercial-lease-early\/","title":{"rendered":"How Can I Get Out of My Commercial Lease Early in England and Wales?"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">Suppose you <a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/agreement-for-lease\/\">rent commercial premises<\/a> in England and Wales, but they no longer suit your business. In that case, you may consider how you can get out of your commercial lease before the end of the lease term and the potential costs if you did. This article will help you understand the different options you have when ending your commercial lease early.\u00a0<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Do You Have a Break Clause?<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">The first thing you should do if you want to get out of your commercial lease early is to read your lease document carefully. You may have something referred to as a \u2018break clause\u2019. A break clause allows you or your landlord to end your lease before the end of the fixed term of your lease. There will always be conditions that you have to meet to do this. For example, it may be at a particular point in your tenancy or after a certain time. In addition, there are often specific ways to communicate notice to your landlord.<\/span><\/p>\n\n\n\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">All is not lost if you do not have a break clause in your commercial lease. There are other ways in which you can leave your lease early.<\/span><\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Negotiate With Your Landlord<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Your landlord may be willing to negotiate with you to end your lease early through a deed of surrender. A deed of surrender is a legal contract that ends the original lease. For example, it may include a provision that requires you to pay a sum of money to your landlord in return for agreeing to let you end the lease early.<\/span><\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center 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Provided your landlord agrees to this, you can find a suitable commercial tenant (which the landlord must also agree to) who will take over your original lease for the remaining time left in the fixed term. To do this, you, the new tenant and your landlord enter into a <a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/assigning-vs-subletting\/\">deed of assignment<\/a>.\u00a0<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">A deed of assignment transfers the lease to the new tenant and contains the landlord\u2019s consent to the new tenant and the lease transfer. If you opt for this solution, you and the new tenant must agree on who will pay the landlord\u2019s legal fees. The landlord is effectively doing you a favour, and so you should not expect them to pay their own legal costs.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Sublet Your Lease<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Your landlord may agree to you finding a subtenant for the lease. Alternatively, your lease may contain a clause that expressly allows you to sublet the whole or part of the business premises. If this is a possibility, this works similarly to finding a new tenant, and your landlord must agree to the subtenant. The vital difference between a sublet and finding a new tenant to take over the lease is that you will still be responsible for all terms and conditions of your lease. For instance, you are still responsible for ensuring that:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the rent is paid on time; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">any provisions relating to the state and maintenance of the property are met.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">To cover yourself, you would need to enter into a sublease agreement with your subtenant, which would make a contract between you and your subtenant that they will meet these conditions. However, if your subtenant breaches these obligations, you will be held responsible.<\/span><\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Costs Involved With Ending Your Commercial Lease Early<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">There will be costs involved with all of your options to end your lease early. Therefore, you should weigh these up carefully against the costs of staying in the property until the end of the fixed term of your lease.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you do have a <a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/terminate-commercial-lease\/\">break clause<\/a>, your lease will explain the costs of ending the lease early. <\/span>Alternatively, i<span style=\"font-weight: 400\">f you do not have a break clause, then you may need to pay your landlord\u2019s legal fees and possibly a financial sum in exchange for ending the lease early. If your landlord agree<\/span>s <span style=\"font-weight: 400\">to let you find a new tenant for the lease or allow<\/span>s<span style=\"font-weight: 400\"> you to take a sub-tenant, there will also potentially be costs in advertising to find a new tenant or sub-tenant.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Moreover, if you seek to leave your commercial lease early because your business is having financial difficulties, it is essential to be honest with your landlord. In this situation, they will want to weigh up the likelihood of you paying rent in the future and potential eviction costs against the costs of finding a new tenant. Thus, they may be more willing to let you end the lease early.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">If you want to leave your commercial lease early, you do have some options, namely:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">taking advantage of a break clause in your lease;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">negotiating with your landlord to allow you to leave early;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">finding a new tenant to take over your lease; or<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">subletting your lease to a subtenant.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">It is essential to understand what your lease does and does not allow. It is also sensible to be honest and upfront with your landlord so you can come up with a solution that works for you both.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you need help understanding your options for leaving your commercial lease early, our <\/span><a href=\"https:\/\/legalvision.co.uk\/leasing-lawyers-lp\/\"><span style=\"font-weight: 400\">experienced commercial property and leasing lawyers<\/span><\/a><span style=\"font-weight: 400\"> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <\/span><a href=\"https:\/\/legalvision.co.uk\/membership\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1641869369327\"><strong class=\"schema-faq-question\">What is a break clause?<\/strong> <p class=\"schema-faq-answer\">A break clause, also known as an early termination clause, is a clause in your commercial lease that provides you and your landlord with a way to end your lease early. There are usually cost implications, or you can only do this at a particular time in your lease contract.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1641869377726\"><strong class=\"schema-faq-question\">Can I find a new tenant to take over my lease?<\/strong> <p class=\"schema-faq-answer\">Potentially, yes, this is an option. If your landlord agrees, you can assign your lease to a new tenant, which will release your responsibility concerning the lease. Alternatively, your landlord may agree to let you sublet your lease to someone else; in this situation, you would still be legally responsible for all the original terms of the lease, so this is something to consider carefully.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/1611\" \/>            <input value=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/how-can-i-get-out-of-my-commercial-lease-early\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"How Can I Get Out of My Commercial Lease Early in England and Wales?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Suppose you rent commercial premises in England and Wales, but they no longer suit your business. In that case, you may consider how you can get out of your commercial lease before the end of the lease term and the potential costs if you did. This article will help you understand the different options you<a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/how-can-i-get-out-of-my-commercial-lease-early\/\">Continue reading <span class=\"sr-only\">&#8220;How Can I Get Out of My Commercial Lease Early in England and Wales?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13323,"featured_media":626,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"997,1379,2346,1161,2825,2036","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[30],"tags":[20,21,61,63,82],"class_list":["post-1611","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-lease-property","tag-small-business","tag-medium-business","tag-commercial-lease","tag-lease-document","tag-end-lease"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Can I Get Out of My Commercial Lease Early? 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She previously studied law at the University of Nottingham and Virginia School of Law. As well as freelance writing, Rachel runs her own small online business and enjoys various creative endeavours - hence her interest in all things intellectual property and e-commerce.","sameAs":["laini.bennett@legalvision.com.au"],"url":"https:\/\/legalvision.co.uk\/author\/rachelking\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/commercial-lease-property\/how-can-i-get-out-of-my-commercial-lease-early\/#faq-question-1641869369327","name":"What is a break clause?","acceptedAnswer":{"@type":"Answer","text":"A break clause, also known as an early termination clause, is a clause in your commercial lease that provides you and your landlord with a way to end your lease early. There are usually cost implications, or you can only do this at a particular time in your lease contract.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/commercial-lease-property\/how-can-i-get-out-of-my-commercial-lease-early\/#faq-question-1641869377726","name":"Can I find a new tenant to take over my lease?","acceptedAnswer":{"@type":"Answer","text":"Potentially, yes, this is an option. If your landlord agrees, you can assign your lease to a new tenant, which will release your responsibility concerning the lease. Alternatively, your landlord may agree to let you sublet your lease to someone else; in this situation, you would still be legally responsible for all the original terms of the lease, so this is something to consider carefully.","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/1611","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13323"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=1611"}],"version-history":[{"count":8,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/1611\/revisions"}],"predecessor-version":[{"id":4496,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/1611\/revisions\/4496"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/626"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=1611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=1611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=1611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}