Getting out of a Lease

4. Terminating the Lease

4.1 Exercise a break clause in your lease contract, if there is one.

• You usually have to notify the landlord in writing during a fixed notice period. Ensure you do not miss the deadline.
• The landlord may be legally entitled to refuse to accept the break if you breach any of the terms of your lease, however minor. For example, if the rent is in arrears.
• Check your lease for any penalties.

4.2 In the absence of a break clause, offer your landlord a deal based on the current market conditions to surrender your lease (see 8).

• The landlord is under no obligation to agree to any proposal you make.
• If the landlord realises you are desperate to move, you may end up paying a premium to leave.
• If you are in financial difficulties, you may only be asked to pay a relatively small penalty payment.You will have to prove your position to the landlord. Be prepared to reveal financial information relating to your business.(If nothing else, the landlord may agree to a lower rent if it is clear that your business will fail otherwise. A lower income is often better than a vacant property.)
• Your negotiating position should be much stronger if you can find another business to take on the lease - especially if its financial standing is better than yours.