Can a long term lease ever be quashed if circumstances alter?

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  • Can a long term lease ever be quashed if circumstances alter?

    I am a director of my golf club. We have a long term lease with the landowner. The annual rent was made up of a fixed amount plus a percentage of turnover. This has totalled up to £70k per annum. The golf course went through some difficult times and five years ago a deal was reached whereby we paid a reduced rent for a period of time. Both parties had a 12 month break clause inserted in the five year amendment. We are currently in the final year of the five year agreement and our rent is now £35k for this year. This is going to be a struggle for us to pay. When the five year agreement comes to an end the landlord is insisting we go back to the original terms of the lease with no obligation to negotiate on the rent we pay. The golf industry has gone through many changes over the intervening period with membership declining and general participation in the sport declining too. Is there any precedent for having the original lease quashed, forcing our landlords to negotiate a new lease on more realistic terms?

  • Lawcruncher
    Unless the terms of the tenancy allow it, a tenant cannot bring a lease to an end because of a change of circumstances. It looks like your only options are to exercise the break clause or pay the increased rent.

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  • LondonSW
    Is the lease within the ?
    Do you think the landlord may have other potential tenant lined up ?

    Leave a comment:

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