Posted: Tuesday, 11 January 2011 @ 13:11
Businesses are still looking to reduce costs so is it possible to renegotiate a lease to reduce your premises costs?
There are a number of tactics a tenant can use to try to renegotiate their lease:
If your lease gives you the right to terminate it before the end of the term then it may be worth asking the landlord to reward you with improved terms in return for your agreement not to exercise that right. A landlord is unlikely to want to have to find a new tenant in the current environment so it makes commercial sense to offer a tenant an incentive to stay.
Extending the Term
Offering to extend the term of your lease in return for other concessions eg a reduced rent is also an effective tactic as it gives the landlord security of income for a longer period and may well enable the landlord to raise new finance or rollover existing finance secured against the premises. With financing difficulties still persisting for many people, landlords are again likely to want to cut the tenant a deal.
If you enjoy the right to renew your lease then you can use the statutory renewal procedure to your advantage to negotiate more favourable terms especially if you take the initiative in commencing that procedure.
Cousins Business Law offers two free services to help tenants renegotiate their leases:
Our free business lease review service for tenants provides you with the information about your lease that you need before you open negotiations with your landlord.
Our free lease renewal service is of particular importance for any tenant with 13 months or less to run on their lease. This service gives you the legal and tactical advice you need to commence the lease renewal procedure.
For more information or advice please contact me on 01926 629005.
Steven Petty, Commercial Property Solicitor
This blog is not intended to constitute legal advice, nor is it intended to be a complete and authoritative statement of the law, and what we say might be out of date by the time you read it. You should always seek legal advice to confirm whether or how any information in this article applies to your particular situation. We offer a free telephone consultation
to discuss your particular circumstances.