How to get out of a commercial lease

Taking out a commercial lease is often a long-term commitment and getting out of the contract isn’t always as easy as it is when signing on the dotted line at the outset.

In this blog post, we’re looking at the reasons why you might want to get out of a commercial lease and what options exist if you want to pursue this route.

What are the reasons for wanting to leave a commercial lease?

There are a number of significant reasons why organisations decide to move on from their existing premises. These can include:

  • Outgrowing the existing space as staff numbers have increased
  • Deciding to relocate the business elsewhere
  • Difficulty dealing with the landlord(s)
  • Increase in rent expenses making the lease unaffordable
  • Making changes to the existing lease to improve the terms

What options are available to me?

The answer to this question is very dependent on the lease you have signed. No lease is the same and each can differ in length of term (how long you are contracted in for).

There are different ways of getting out of a commercial lease and we’ve outlined a few key ways below. These may or may not be relevant to your circumstances and it’s important that you seek independent legal advice to ensure you take appropriate action.

  • Negotiating with your landlord – There may be terms in your lease that can be discussed and an early release from the contract agreed.
  • Sourcing a new tenant to take over your lease – You would be responsible to find someone who needs a commercial space, and you may be left with some liabilities depending on what is agreed with the third-party and your landlord.
  • Requesting to buy-out the remaining time on your lease – Often a hugely expensive choice, you are likely to have to pay a lump sum to get out of your lease this way.
  • Arranging an underlease – An underlease occurs when you sub-let to someone else (you would remain liable under these circumstances though).

We’ve outlined a few ways to get out of your lease, but this is by no means an exhaustive list. If you’re looking to get out of a commercial lease, it’s best to get in touch with us and ask for advice. Our expert property team are on-hand to help you review the terms of your existing lease, consider the options available in your situation and establish the best course of action.

To make a free enquiry, please call 665522 or email hello@quinnlegal.im. Alternatively, you can speak to one of our friendly live chat agents on the website or make an enquiry here.