Due to economic recession have you found your commercial lease getting is affecting your profitability? If so, you should consider termination.
Tips of commercial lease
- Before serving a 'notice to terminate' on your landlord, ensure that it is coming from the correct party. For example, although you may be the managing director of a company, if the notice appears to come from you personally and does not come from the company the landlord may render it invalid.
- When calculating your notice period in relation to your contract end date, be aware of exactly what your lease provision is saying. For example, if your lease contains terms such as 'including' or 'commencing on' this means that your lease will expire on the day before the date in the relevant year or month. If your lease uses the term 'from' it will have started the day after the 'from' date. For more information about the commercial lease, you can also visit www.practiceconstruction.com.
- Check the lease for any provisions relating to notice, such as the manner in which, it should be served and within what period of time. If the lease requests that you must serve the termination in writing with 6 months notice, then an email 4 months prior to a proposed termination date will not be legally sufficient.
- If there is no break clause in the lease and you want to leave the building before the contract end date, then your rent paying obligation will continue until that date. If the contract end date is approaching and you are therefore going to stay in the property until then, remember (subject to any lease provisions) you should provide at least 3 months notice to terminate.