Ending a lease early is possible.
On average a business will enter into a lease for a period of 5-10 years. During that time the business will be impacted by a variety of internal and external factors - and we can’t anticipate them all. So it’s not uncommon that a business will come to the conclusion that they need to end a lease early. Ending a lease early carries a significant financial risk and has the potential to damage reputations.
Liberty Leasing eliminates the risk.
How do we do it?
Surrender of Lease
A surrender of lease means that the lease comes to an end prior to the expiry date. The Landlord will require a fee in exchange for doing so, though that fee can only represent a mitigated loss.
Liberty Leasing has the experience to balance these rights and obligations. Our experience translates into the assurance that the terms of the surrender of lease are competitive in the current market and that tenants aren’t paying too much.
Assignment of Lease
Following an assignment, but subject to the relevant legislation and documentation, our clients will be released from their obligations under the lease. This means that the business has no further liability, and for its purpose, the lease has ended.
Subleasing means that a business leases part or all of their premises to a third party. This can be a great option. In some circumstances, it is even financially beneficial.
For example: Imagine that you no longer need the entirety of your leased space because the business has recently undergone an internal restructure. That unused and wasted space can be monetised by sub-leasing part of your premises to a third party for the duration of the lease term. Depending on the property market at the time, the lease becomes a passive income stream.
It is almost always more economical for a Landlord to keep an existing Tenant over finding a new one. If the reason for exiting the lease are purely economical, then we can pursue cost reductions through the lease.
Following a review of the lease, we use our knowledge of the current market climate to leverage your position with the Landlord and negotiate a reduction of costs.
Whichever early exit solution meets the needs of the business, we take-on a comprehensive transaction management role. This includes preparing applications for Landlord consent, negotiating the key commercial terms, liaising with relevant stakeholders, facilitating the return of bank guarantees and overseeing the parties’ disclosure obligations.
We do the heavy lifting (administratively speaking) so that you can focus on more important things, like Whiskey Wednesdays.