We occupy a building as a tenant and our lease is due to end later this year – what should we be thinking about?
SOURCE: INSIDER, MARCH 2010
If you want to stay:
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Consider opening negotiations asap with your landlord for a new lease or an extension to your existing lease – to avoid the risk of having to move out (or being left in illegal occupation) after the end of your existing lease. It might also allow you to negotiate better terms for continuing occupation in a difficult market.
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Check whether your lease gives you an option to extend its length – if it does, check any notice provisions or other procedure you have to comply with to use the option.
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If your lease is due to end very shortly, but your landlord hasn’t yet sent you a notice to quit, contact your lawyer – if a notice to quit isn’t served within the correct timescale, your lease may automatically continue (for a limited period) after the scheduled end date by what’s called “tacit relocation”.
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Depending on the nature of your business, you may be able to apply for a court order to let you stay in occupation for a limited period (this right is open to certain retail outlets but is not commonly authorised by the courts).
If you want to leave:
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Speak with your lawyer to ensure you comply with the procedure and timescales for giving your landlord notice of your intention to end the lease (this will avoid the possibility of “tacit relocation” mentioned above).
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Check well in advance what you need to do at lease end – e.g. your lease will probably say what condition the premises should be left in (though you may be able to negotiate a lump sum with your landlord rather than doing repair/decoration works), and whether any physical alterations you’ve made should be removed. Your lease may also say whether you can take fixtures and fittings with you.
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Ensure that, when the lease ends, the landlord releases any rent deposit, guarantee or other security you provided.
AUTHOR: elspeth carson
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