|Issue||Tenant had a lease until 2017 / No longer in occupation / Property was overrented / Landlords consent required / Dilapidations liability|
|Project Manager||Fiona Brownfoot|
M: 07770 470 214
Lease surrender achieved for retail premises with no break clause lease
Our client’s business model had evolved to being purely online focused, which left them with premises which they no longer required. However, they were locked into a lease that did not contain a break clause until 2017 and the property was ‘overrented’.
The options were to either sub let, however due to the short term nature of the lease the rental offers that we received were not acceptable to the superior landlord; assign – this was difficult due to the ‘overrented’ issue, or seek a suitable replacement tenant who would take a new lease thus allowing our client to surrender their lease once a surrender premium was agreed and dilapidations taken care of.
Our client was able to extract themselves from premises that they no longer required, and were able to make savings on rent and rates without waiting for the break clause as a satisfactory tenant was identified and terms agreed with the new tenants surveyors for a new lease with the landlord; terms were agreed with the landlords surveyor for a surrender of the existing lease, and then all three parties solicitors were instructed. Both transactions were very closely monitored including agreeing the specification for a strip out of the unit and dealing with the prospective new tenants.Download PDF