Taking on business premises? Signing a commercial lease is a major step for any growing business, but it’s also a long-term commitment. Making sure your lease includes clear exit options is key to protecting your business if your plans change, whether you need to downsize, relocate or expand.
Watch the video below, in which a member of our expert legal team, explains the common exit mechanisms tenants should look for in a lease, including break clauses, assignment provisions and subletting, and why they matter before you sign.
How to Get Out of a Commercial Lease Early Transcript
Taking a commercial lease is an exciting time for a tenant. It marks a major milestone for the growth of your business and provides a permanent place to welcome new clients and build your team.
However, circumstances can and do change, which means it’s vital to have clear exit strategies available to you in your lease in order to prevent financial penalties, disruption to your business and legal lock-ins.
Common exit mechanisms in a lease include break clauses, which give you a legal right to end your lease early, assignment provisions, which allow you to transfer your lease to a new tenant, and the ability to sublet the whole property or any space you do not need within your business premises to a third party.
A failure to consider the potential need for an exit strategy before your lease begins means you will need to rely on the goodwill of your landlord in the event you need to end your lease early. This can lead to financial and legal damage to you and your business.
So if you have any questions about a commercial lease, get in touch.
Get in Touch with Newtons Solicitors
Newtons Solicitors has offices throughout Yorkshire, the North East, and Cumbria, so you can access legal services in the location most convenient to you.
If you would like to learn more about commercial leases please don’t hesitate to reach out to our friendly team. We’re here to guide you through your lease so you can secure your premises with confidence and flexibility.