So your lease is nearly up, what next?
Don't panic ;
We can not only advise you, but help you navigate this crucial part of your tenure. We have an excellent track record helping clients, so no matter what you plan on doing next, you are in good hands.
1) Lease renewal
As a commercial tenant, with fixed-term lease of six months duration or less, you may not have the right to renew your lease. For most other commercial tenant situations, you can however renew your lease after the initial term has expired, should you wish to do so and with the landlord’s agreement. This is protected in law under the Landlord and Tenant Act (1954) But do check your lease to ensure that your commercial lease has not been excluded from this!
2) End the tenancy early
If your lease has a ‘break clause’ it is possible that either you or your landlord can end the tenancy early. A break clause gives you options as a tenant: do you move to a more strategic location, do you undergo an office churn and refresh the space, redesign the floor plan to improve the office environment, or simply commit to the rest of the tenure, stay put and continue with your current set up.
3) Plan well ahead
In our extensive experience of moving clients, we recommend that you begin planning for the end of your commercial lease well ahead of time – in some cases, a minimum of 6 months, but do be comfortable and well planned, 9 - 12 months is ideal. This is twofold; It allows time to source a new space in the right location, allows for design ‘Test Fits’ and consolidation of clients ideas and input. It allows your organisation to structure the process properly, appointing an internal client representative/ project manager. It gives us both time to design, plan and fit out your new space.
It is also to ensure that both you and your landlord understand the situation and can make contingency plans. It is also to ensure that you give your landlord the required legal notice of either vacating the property (at least three months’ notice) or renewing your lease, usually 6 - 12 months’ notice).
4) Consider your repair obligations
If you sign your lease at the beginning of your tenancy, it may include a ‘Full Repair and Insurance’ (FRI) clause, so at the end of your tenure it is your responsibility that the premises is returned to your landlord in ‘good condition’. Your landlord may serve you with a 'Schedule of Dilapidations', outlining what work you need to complete to return the building to this state; this will be at your own cost. A Schedule of Condition (SoC) should be agreed at the beginning of your lease, which will help confirm what work needs to be done at the end of your tenancy.
Resource At Work will support you, step by step, to a complete resolution.
If you have any concerns about your upcoming lease expiry or need impartial advice, support and help in planning the next step, finding a new home for your business or designing and fitting out a new space, pick up the phone. email us. contact us today, we look forward to helping you!
T 020 7997 6031