Can I walk away from a commercial lease?

Answer

You can’t just walk away from a commercial lease because it is a legally binding contract so it would be a breach of contract to do so. If your commercial lease has come to an end after a fixed term, then you can legally terminate the agreement by giving your landlord notice and serving a Section 26 notice 6-12 months before the end of the lease. 

Another opportunity to end a lease could be at a “break point” if you have a break clause in your contract. This allows either the landlord or the tenant the option to end the lease after a certain period of time without any consequences. For example, you could agree with your landlord that you’ll put a break clause after 3 or 5 years. At this point, if either party wants to terminate the contract they can do so and both parties can go their separate ways. 

If you want to walk away from your commercial lease agreement but you don’t have a break clause and you are nowhere near the end of the lease term, you could simply speak with your landlord to see if you can come to an agreement. They may agree to end your lease early if your business fails or you cannot keep up with rent payments for instance. They may just try and find someone else to rent the property instead. 

You may be able to break your lease if your landlord has breached the terms of your contract, perhaps they have failed to maintain the property, they haven’t paid the utility bills or are trying to change the premises without your permission. In this instance, there is a process to follow. So even in this case, you can’t just walk away from your lease. 

It’s a good idea to get legal advice from a specialised commercial lease solicitor before you do anything. This way, you’ll know where you stand legally and you’ll be provided with the options available to you depending on your situation.