Termination Of Leases

In the present economic environment, many tenants will be seeking to vacate premises, reduce the size of their premises or renegotiate their lease with the landlord, so times are tough for landlords.

Furthermore, tenants who were deemed ‘good tenants’ or who appeared financially strong may now be a less attractive proposition than they once were. Here we list some tips for landlords to assist with tenants when a break clause in a lease is looming;

  1. Do your research on your tenant and try to anticipate their stance. Obtain up to date accounts and look at their operation. Plan a short visit to the premises as this can usually be illuminating.
  2. Be ready to remarket your property if negotiations with your tenant break down or they wish to terminate. You should prepare a pack containing all the necessary planning consents, searches and so on, so a prospective new tenant is in possession of all the information they need to make a decision straight away.
  3. Make sure you know when and how notices must be issued.
  4. If your tenant wishes to renegotiate their lease, ensure you know your market and can ascertain what their other options may be. It may be worth requesting better security in the form of assets or guarantors.
  5. If you believe your tenant is likely to default, remember that your right to repossession of the property may be delayed unless you act first.

If you require any further advice relating to this topic or any aspect of landlord and tenant, please contact us today on 01536 276300 or email amy@seatons.co.uk.