Commercial Property Lease Advisory – A Lease Surrender Case Study
When we help a client who is faced with an uncertainty to have security, it makes us happy to be able to resolve their headache. In this Lease Surrender case stufy, our client landlord had a tenant who wished to move on and no longer wished to run the business. However, he did have an another occupier lined up.
The lease was due to expire shortly, and the tenant did not wish to assign the interest and have the burden of responsibility of lease obligations. The client was happy to have the new tenant provided they passed the necessary checks. The landlord did not wish to let the original tenant go until he was certain the new tenant was secured.
There were complexities to this case but we managed to negotiate a simultaneous surrender and re-grant with the original tenant acting as Guarantor. This meant that the client had security knowing that there would be a new fixed term and a rental income too. We were also able to negotiate a higher rental on the new lease to reflect the current market, as the old lease had a lower passing rent. The out-going tenant was happy with the result too.