The key is getting out say Shropshire commercial law firm
Andrews Law specialist commercial law firm warns property owners and occupiers that whilst it might be easy to acquire a property, it may be more difficult to get away from one! In a tricky market a commercial landlord may have more power than you may think.
In a headline case decided by the Court of Appeal, a commercial landlord and its tenant disputed whether a break clause in a lease was effective.
Most leases impose a requirement that a party must provide vacant possession at the end of the lease term or to satisfy a break clause.
In this matter, following discussions between the parties’ surveyors, it was agreed that repair works were required under the terms of the lease. When carrying out the works, the tenant’s contractors overran the break date and so this meant that the tenant could not give vacant possession at the relevant break date.
The Court of Appeal decided that, at the moment that vacant possession is required to be given, the property must be empty of people or property. As a result because the contractors remained on site, the Court said that the lease was continuing and the landlord was entitled to rent
Ian Bowker, commercial property solicitor with Andrews Law advises it is important for both landlords and tenants to understand their position on termination of a lease. “The starting point when seeking to terminate a lease, must always be the terms of the lease. I advise clients to seek early agreement in writing with the landlord or its agent as to the conditions to be fulfilled when terminating a lease. This should include arrangements for completing repairs to the property either before or after the end of the term.”
Andrews Law welcomes enquiries from both landlords and tenants of commercial properties and anybody with a query should contact Ian Bowker on 01746 769700 for a no obligation consultation.
