Eddisons' experienced team of chartered surveyors and lease advisory experts, work closely with commercial property occupiers throughout the UK to advise them on how to exit their lease. Subjects such as break clauses, early termination options and dilapidations can be easily navigated with us by your side.
Commercial property tenants often feel intimidated by their lease agreement; it is understandable given that sometimes they can contain over 50 pages of contractual terminology and legalese. We can break-down the fundamental and most important aspects of your lease and discuss how it affects you now and the implications for the future – including what is expected of you when your lease term is coming to an end.
Commercial leases can often be broken down into mini agreements which can add to the complex nature of these contracts. These mini agreements are also described as additional clauses and often have a significant part to play. We can walk you through these clauses and explain what they mean in practice and advise as to how you they can work for you when looking to exit your lease.
Find out more about Lease Advisory in our popular FAQs
A commercial lease can often run into double figures in terms of years, with 20-year leases not uncommon for established businesses. On the other hand, SMEs and start-ups often opt for smaller lease contracts such as 2-3 years with a potential break clause in case commercial activity doesn't quite go as planned.
In any new lease contract, it would make sense for all parties to have a break clause inserted which provides added flexibility and a 'safety net' for both the landlord and tenant should circumstances arise where early termination is required.
A break clause can protect businesses in a number of ways, such as where they are struggling financially or maybe they have outgrown their current premises and require expansion or a new property. It can also offer protection against personal liability if you are a sole trader that has gone out of business or a director that has signed a personal lease guarantee.
When coming to the natural end of a lease and having taken the decision that a move is your next step rather than renewal there are a number of things to consider:
Currently the commercial property market is very active with lots of tenants moving around. This is positive in the sense that a range of available properties will be available over time however they may change hands quickly or even do so off the open market and so it is important to engage with an agency like us as soon as possible ahead of a potential move in order to identify on and off market opportunities so that you can secure the most appropriate property with the right lease.
New lease terms
Upon deciding a particular property is right for your next move it will invariably come with a new landlord and lease containing new terms for you to agree with. These terms should always be run by a chartered surveyor with particular expertise in lease contracts such as us, so that you can put forward formal lease amendments where appropriate to make sure that the lease is balanced fairly and works for all parties.
The cost of returning the property you are leaving to the condition in which it was taken on can be a significant factor in deciding the viability and timing of a move. Our surveyors can review your dilapidation clauses in your new lease but also review the cost of dilapidations prepared for you by your soon to be ex landlord to ensure the costs are fair by checking them against your lease obligations and also providing an independent quote for the required works needed, if indeed they are applicable.
All of these aspects are best faced with us by your side, providing independent advice to ensure your interests are protected and you are able to exit your lease having managed your obligations cost effectively and are able to move on to your next property with a lease that suits you.
More information on our lease advisory services can be found to the top left hand side of this page under Steven's picture; however for specific enquiries relating to exiting your lease, you can use the 'get in touch' form below and one of our team will contact you to discuss how we can help.