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Can I end my Commercial Property Lease Early

There can be a few reasons as to why you might be asking “can I end my commercial property lease early?” Maybe your business has gone sour and you have decided to call it a day or perhaps you have found a much better business location but you need to move straight away. Whatever the reason, getting out of a lease early can be tricky; a lot will depend on the content of your lease contract or failing that the reasonableness of your landlord.

Can I end my Commercial Property Lease Early? – Yes, if you have a provision in your lease contract

If you have a ‘get out early’ clause in your lease contract then now is the time to congratulate yourself on some great forward planning. If you don’t have this clause you need to be asking yourself, “why not?” The landlord might refuse to have such a provision in the contract, but failing to ask for it during the negotiations is careless. A ‘get out early’ clause is a great thing to have if you need to break the contract, but most businesses don’t realise the important of this until it is too late. After you need to break the lease it is too late to be considering such clauses but it is certainly something you should consider in the future.

Can I end my Commercial Property Lease Early? – Yes, if your landlord is very reasonable

Sometimes you can get a landlord who is a real pleasure to know and is willing to let you off the hook even though you haven’t got a legal foot to stand on. Maybe the fact that they have struggled with business themselves means they are sympathetic. Perhaps they are just kind-hearted and don’t want to make trouble for you. Whatever the reason these people are the exception and far from the rule; the majority of landlords will not allow you to escape the lease without paying a penalty.

Can I end my Commercial Property Lease Early? – Yes, but it is going to cost you

Sometimes your only option will be to try and buy yourself out of the lease. Of course you could just try and walk away but that could turn out to be very expensive. You may have to keep on paying the lease until the landlord can find somebody else to rent it; they might not be in any rush to do this.

Can I end my Commercial Lease Early? Maybe, if you have Lease Insurance

Some businesses chose to get lease insurance which means that should they reach a stage that they can no longer pay the lease they will be covered for this. The insurance policy should pay off whatever money is due – I say should here because much will depend on the type of policy. In some parts of the world having this type of insurance is expected and many landlords demand it because it makes their life easier.

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