If you are a tenant on a commercial lease, you may find yourself in a situation where you need to terminate the lease early. Whether you are a small business owner looking to downsize, or a large company that has outgrown your current space, there may come a time when you need to leave your commercial lease.
So, can you simply walk away from your commercial lease? The answer is not necessary. The terms of your commercial lease will determine whether you can terminate the lease early and, if so, under what circumstances.
If your commercial lease has a fixed term, such as two years, you may be required to pay a penalty if you terminate the lease early. The penalty may be a percentage of the remaining rent due under the lease, or it may be a flat fee. The terms of the penalty will depend on the specific terms of the lease, and it is important to review these carefully before deciding to terminate the lease early.
If your commercial lease does not have a fixed term, it is likely to be a periodic tenancy, which means that it will renew automatically unless terminated by either the landlord or the tenant. If you are on a periodic tenancy, you will typically be required to give the notice to terminate the lease. The notice period will depend on the terms of the lease and may be anything from one month to six months.
If you are unable to terminate the lease early and pay any required penalties, you may still be able to sublet the space or assign the lease to another tenant. This will require the consent of the landlord, and you will typically be required to pay any costs associated with the sublet or assignment.
Overall, whether you can leave your commercial lease will depend on the specific terms of the lease, and it is important to review these carefully before deciding. If you are unsure of your rights and obligations under the lease, it is always a good idea to seek legal advice before proceeding.
For more information, advice and support please do not hesitate to contact CWBC @ www.cwbc.co.uk