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Termination of leases

Practical Advice on Lease Termination

Sometimes it might become necessary for a commercial lease of an office, warehouse, health centre or care home to be brought to an end before the end of the fixed term, because of changes in the business environment. There are a several ways this can be achieved, and we can advise which method is most appropriate to you.

Agreement to Surrender

If both parties agree that the lease can be ended early, then a formal surrender is the preferred option – we always advise that a surrender be carried out by way of a formal Deed of Surrender (perhaps with an Agreement for Surrender), although we can advise on the other ways a termination of lease can be achieved.

How we can help tenants and landlords

If you are a tenant, we will:

  • help you negotiate and agree a deed of surrender with your landlord, finalising liability for outstanding matters such as repairing obligations and outstanding rent arrears;
  • sort out payments due between the landlord and the tenant after completion of the deed of surrender;
  • deal with removal of the surrendered lease from the Land Registry (if applicable).

If you are a landlord, we will:

  • draft, negotiate and agree a deed of surrender on your behalf ensuring that you are released from all of your obligations;
  • raise and review enquiries prior to surrender of the lease, reporting to you on the same, such as vacant possession and any third parties’ interests remaining at the property such as an underlease;
  • complete the deed of surrender on your behalf.

Forfeiture

A landlord can almost always end a lease before its end date if the tenant failed to pay the rent or comply with the terms of the lease through forfeiture. The landlord will be able to terminate in this way if the lease contains a forfeiture clause. We can assist landlords if they wish to forfeit a lease or if you are tenant, we can assist with applying to the court for relief from forfeiture.

Break clauses

You may have a tenant and/or landlord break clause in your lease. If so, this allows the relevant party to terminate the lease. However, certain requirements must be followed, usually regarding notice, and we can advise both landlords and tenants on the successful exercise of the break clause.

Landlord and Tenant Act 1954 Notices

If your lease has security of tenure under the terms of the Landlord and Tenant Act 1954, terminating the lease can be complicated if you are a landlord, since the lease will continue until brought to an end by either the landlord or the tenant. There are only limited grounds on which a landlord can terminate a lease that has security of tenure – please speak to one our specialists if you have any questions in relation to this.

For further information regarding a purchase or sale of either a freehold or leasehold commercial property, please contact our commercial property solicitors on 01483 451 900 or make an online enquiry.

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© Gordons Partnership is the trading name of Gordons Partnership 2020 Limited a company registered in England & Wales (Company Number 12464371).
Registered office is at First Floor, 1 Chancery Lane, London WC2A 1LF. VAT No: GB 629 857 388 - Site by WBJ Designs

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© Gordons Partnership is the trading name of Gordons Partnership 2020 Limited a company registered in England & Wales (Company Number 12464371).
Registered office is at First Floor, 1 Chancery Lane, London WC2A 1LF. VAT No: GB 629 857 388 - Site by WBJ Designs