Commercial Lease

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    Commercial Lease

    Hi all
    im a year into a 5 year lease with a break clause at year 3 either side. The landlord has now put the property up for sale and has recently asked if I would terminate my lease early as me being here is obstructing the sale as prospective buyers have intimated that they don’t want a sitting tenant in the offices which are sited on the land where the owners residential property is

    If they want me out - I need to find a suitable alternative (similar to what I have now - 2 office areas )
    finding what I need is difficult as the costs have now increased

    I can see things are getting strained as the landlord keeps coming in intimating that they have lost a cash buyer and viewings as I am in situ

    would it be fair to ask for moving costs and any difference for uplift for the period upto the break clause if I agreed to move out before my time. As mentioned I can see things starting to go pear shaped, as I’ve heard stories from the last tenant I’ve started to lock the inner doors and place a nest camera as they are getting a bit sneaky

    any advice would be appreciated

    I would suggest that you post a precise extract of the break clause so that members can spot whether there might be a hickey in the clause by which the landlord contends he can ask you to vacate. Sometimes there are time restrictions on the date when notice can be served. Have you been served with formal notice to determine the lease? Or are matters informal through correspondence/ verbally etc?If notice is served it has to be in accordance with the terms of the lease


      The bottom line is that you have the right to continue in occupation until at least the exercise of the break clause. If the lease is not contracted out the exercise of the break clause by the landlord will not end the tenancy and your statutory rights kick in. This means you get to set the terms if the landlord wants you out now. He cannot expect you just to up and leave to suit his convenience. After all, the landlord either entered into the lease or bought the property subject to the lease. If his plans have changed that is his problem, not yours.

      At the very minimum, you need to make sure that by moving you are not worse off. There is though no reason why you should not add something on top. As someone said in the forum only yesterday, you are in business to make money - get what you can if you decide to move.


        What I was thinking as a minimum was

        full refund of security deposit

        Them covering Commercial moving costs

        uplift - reasonable difference between existing lease cost v new up to and including break clause date - so if there if for example is a £ 200 difference pcm to my deficit for something similar that they compensate that difference up until the break clause

        refund of remaining time on insurances paid for building

        not having to Re decorate when I move out

        obviously this would have to be tied down formally but I thought this would be reasonable - uplift might have to be negotiated but the rest I think would be straight forward


          To the above you need to add:

          · Refund of any rent paid in advance
          . Solicitor's costs for dealing with surrender
          · Possibly surveyor's costs
          · A premium
          · An absolute release from your obligations

          Whether you engage a surveyor depends very much on what sort of premium is justifiable. Unfortunately you will not know what you can expect without asking a surveyor. I suggest calling one for a quick chat. Do not formally instruct a solicitor or surveyor until you have an undertaking to meet their costs.


            I would say to the landlord I will go early for a payment of £25,000.


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