Opt out of shop lease

sidross

I have a couple of friends who leased a shop unit for 12 months , but are in a spot of problem at the momoent. There is no opt out clause in their lease and are having trouble paying the rent, is there anyway to get out of a lease without paying the remainder of the rent owed.:huh:

missymugwump

Only bankruptcy im afraid

Or sub let it if it allows for sub let in tenancy agreemet

sidross

thanks, that`s what I thought. What about voluntary liquidation?

missymugwump

Depends what your definition of it is ?
Can you expand on what your thinking

sidross

coming to an agreement with the owner and paying part of the outstanding money and pay off the remainder at a later date. They have a small manufacturing unit and can still trade from it, but the shop unit will sink them completely. They are still unable to get credit from suppliers and need cash to pay for all goods on delivery.

missymugwump

It has to worth asking
At the end of the day some money may be better for them than possibly none
Is the manufacturing unit & the shop on the same lease
Or are they seperate

missymugwump

Try here they are really helpful but a bit brutal no sugar coating

http://www.landlordzone.co.uk/forums/forumdisplay.php?f=8

sidross

thanks for your help

sidross

shop and manufacturing units are not under the same lease or landlord

shelovestobuystuff

Theres sometimes the possibility to sell the remainder of the lease on.If theres no option for this in the lease then they should speak to the landlord or agent and see what the arrangement would be.It may just be something they forgot to have in there and will change.
I was interested in a shop once which the current retailer at the time was getting out of early.They had a £5k fee clause for ending the lease early which they tried to pass onto the new tenant by selling the lease on for £5k.Needless to say I waited till they had had to pay the fee and closed shop before taking over the lease minus the £5k fee.

If they would rather try to find a way to keep the retail unit they have to search every inch of the lease to see just what they are allowed to do from the shop,can they sell other things,can they sub let,can they perhaps allow other retailers or manufacturers to use part of the shop to show their wares.
Consessions are a fab thing,you get some guaranteed income towards the rent and other retailers get a cheaper than usual showcase space.