Cost of Living Crisis: Do You Need to End Your Lease Early?

Many people across the county have felt the pinch of the cost-of-living increase, whether it be the rise in energy bills, food prices or other goods.

The crisis presents a bigger problem for small and independent businesses on the high street. The high street has been a popular location for independent shops and businesses; however, the pressures of the cost of living crisis are now being felt by local businesses who are struggling to get customers through the door as the cost of energy and products rise, people have less money to spend.

Myerson's Property Litigation Team explore local closures and commercial lease terms. 

The cost-of-living crisis has been evident in our local town of Altrincham, with owners of an outdoor food and drink hub announcing it is to close. The closure is because the increase in rent and electricity has had a ‘huge impact’ on the business. This announcement comes after restaurant Bistrot Pierre and diner Mustard also announced closures.

If you are a tenant, who is struggling, it is worth checking if you have a break clause in your lease which will allow you to terminate the lease before the expiry of the term. However, to ensure the break is exercised correctly, the notice must be served in compliance with the lease terms. There may also be break conditions that must be complied with.

To exercise a break, you must serve a notice to the landlord following the lease terms. It is very important that the correct notice period is given and you comply with the provisions in the lease. These may specify the entity to be served and the address to which the notice should be sent.