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Thomas
Thomas, Lawyer
Category: UK Property Law
Satisfied Customers: 7615
Experience:  BA (Hons), PgDip, Practising Solicitor
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I want to get rid of commercial lease, I sign this personally

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I want to get rid of commercial lease, I sign this personally not as a company which we run (this is limited company). I closed down shop in March 2012 and I paid rent till December and now I am paying instalments, I can not afford paying 17 000+ busines rate 8000. I do not know what to do . I gave this shop to sub let by Howkins and Harisson but around are 7 shops to let as well. This is in High Street in Rugby .
Hi

Are you unable to assign the lease?

Tom
Customer: replied 4 years ago.

Yes, I want to stop this lease.

Hi

Thanks for your patience.

You need to check your lease to see if there is a clause in it which permits you to either assign (ie. sell the remaining term of the lease) or sub-let the property to another tenant. It may be subject to a few landlord conditions like you signing an authorised guarantee agreement in which you guarantee the performance of the new tenant. If you find a tenant then you will need to instruct a solicitor to assign the lease for you.

If, as it sounds, you are not able to find a replacement tenant then in the first instance you should negotiate with the landlord a Surrender of Lease. This is where you both agree that the lease should be terminated. The landlor di under no legal obligation to accept a surrender of lease and so will charge a fee. You will have to see what he is willing to charge.

Your only altermative apart from that is to return the keys to the landlord. This means that you will breach the contract and the landlord can then seek to recover damages from you. However, they are under an obligations to mitigate their lose so you would find yourself liable for the amount of rent that you would have paid until the landlord could reasonably have expected to re-let the property. If you cannot settle informally then it would involved litigation in which case you would also find yourself liable for the landlord’s legal fees and interest.

I am sorry that I could not have better news for you but those are your optiosn.

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Kind regards,


Tom
Thomas and 2 other UK Property Law Specialists are ready to help you


Is there any further information you require?

I just want to ensure that you are satisfied, so please let me know if you have any further queries on your position. Please remember to rate my answer, if you are satisfied.

Kind regards,


Tom