Surrender lease advise

[timothyoulton]

since I’ve had load of excellent advise here I thought this could be shared
Not sure if this is the right forum though .

On one of my businesses I have 3 years lease remains ( 10 years initially ) its a restaurant .

I’m planing to relocate to another spot which the rent is 1/3rd & has car park etc...
I’ve tried to negotiate with land lady but she’s not having non of it , rightly so as I’ve been extremely good tenant
I’ve tried to negotiate the rent and happy to pay to independent agency to value but still she say no as this area has had fallen in prices
I’ve even tried to sell the business she said that I still have to be grantor for the remaining terms of the lease if I sell ,
Can’t even file bankruptcy as I’ve got another business as well as properties and wouldn’t like that anyways
So I have exhausted all of the option to surrender the lease
For the next 3 years if I stay I have to pay another £60k on rent ,
How could I surrender the lease ? Is there any solicitor with no win no fee based to negotiate ? She wouldn’t even accept the £20k to let me go .... I’m a landlord myself but not as greedy

King regards

 

[Mr D]

Is there a break clause in the lease between now and the end?

 

[timothyoulton]

No

 

[Mr D]

Is it a limited company? Do you have a personal guarantee on the lease?

 

[timothyoulton]

I’m limited company
But had a lease when I was sold trad back in 2010

 

[Mark T Jones]

What are the chances of you finding a sub- tenant?

 

[timothyoulton]

It’s zero unfortunately for many reasons , one is lease not allow sublet

 

[MikeJ]

I think your best bet is to invent a time machine, go back three years, and tell yourself to get legal advice before signing the lease.

 

[Maz]

Judging by his explanation that he tried all the ways
It’s not an answer to his request
I’d personally be quiet if I ain’t got a solution

 

[STDFR33]

It is not clear what the business structure is, if there are personal guarantees etc.

You should speak to the solicitor that originally looked over the lease for you.

 

[MikeJ]

He signed it as a sole trader

 

[Mr D]

Judging by his explanation that he tried all the ways
It’s not an answer to his request
I’d personally be quiet if I ain’t got a solution

As compared say to your post?

So far it appears people don't have a suggestion about how the OP can legally avoid paying what he agreed to. Based on the information provided.

I can see the landlord's point. Rent that was agreed versus rent that may not be generated at the same level.

 

[Toby Willows]

Well there is one way but it’s a bit of a long shot and requires some effort. Put yourself about a bit local chamber of commerce meetings, businesses clubs etc and find someone who is looking for a unit like yours (you might be surprised, there just might be someone who would love your premises). Then providing they are a credible prospect, looking for a ten year or so lease, I would think you landlord would be happy to release you from the lease “by operation of law” (a couple of hundred quid and you’ll hand the keys back) and have a new longer lease with the new tenant. It’s win win for everyone.

 

[obscure]

.....and find someone who is looking for a unit like yours (you might be surprised, there just might be someone who would love your premises). Then providing they are a credible prospect, looking for a ten year or so lease, I would think you landlord would be happy to release you from the lease “by operation of law” (a couple of hundred quid and you’ll hand the keys back) and have a new longer lease with the new tenant. It’s win win for everyone.

Nice idea, but as the OP pointed out rents in the area have declined. The landlord doesn't want to release the OP because they are guaranteed his higher rent, whereas a new tenant would want a lower rent in line with market rates. Not sure the OP could find a new tenant dumb enough to pay above market rates... but worth looking I suppose.

Ultimately this is another of the rather common "I agreed a contract when it suited me and now want out of it" posts. Unfortunately there are no legal methods of "surrendering a lease" other than in accordance with the terms of the contract (a break clause) or by agreement with the landlord - and if the landlord doesn't think it is financially advantageous to agree they don't have to.

 

[Toby Willows]

Nice idea, but as the OP pointed out rents in the area have declined. The landlord doesn't want to release the OP because they are guaranteed his higher rent, whereas a new tenant would want a lower rent in line with market rates. Not sure the OP could find a new tenant dumb enough to pay above market rates... but worth looking I suppose.

Ultimately this is another of the rather common "I agreed a contract when it suited me and now want out of it" posts. Unfortunately there are no legal methods of "surrendering a lease" other than in accordance with the terms of the contract (a break clause) or by agreement with the landlord - and if the landlord doesn't think it is financially advantageous to agree they don't have to.

The new tenant would be presumably paying market rent, so yes in this case lower than currently but a new ten year lease at a lower rate is better than three years at current rate (unless rents have totally crashed!). Either way it’s worth the effort and finding out rather than doing nothing.

The OP could always also offer the landlord a sweetener and make up any shortfall in the rent for the remaining three years.

 

[Mr D]

The OP could always also offer the landlord a sweetener and make up any shortfall in the rent for the remaining three years.

Which could well cost the OP less than £20k. Even after solicitors fees.