Following a difficult trading year, many businesses are considering whether and how they can reduce or exit their lease liabilities as soon as possible. This might be because of a need to adapt their business models or just to reduce overheads and preserve cash flow.

This might be an urgent if not business critical issue for a tenant’s survival.

The easiest and most inexpensive way of a tenant concluding its lease liabilities is to wait for the contractual term of the lease to expire (but even then the tenant may have some residual liabilities). However, there may be many years left to run meaning the contractual expiry date will be of little use. Indeed, it might be the opposite, and quite unhelpful for the tenant.

Following recent articles Commercial Landlords, Arrears and COVID-19 and COVID-19, Landlords, “CVAs” and forfeiture - what are a landlord’s options?, this article considers some of the means available to a tenant to bring its lease to an early end or to reduce its rent.

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Knights’ Property Litigation specialists are well placed to assist either tenants or landlords, facing any such difficulties. For further information regarding the issues raised here, or for more specific advice, please contact a member of the Property Litigation team.