Can You Leave an Office Lease Early?

Change is inevitable in business. Whether you’re downsizing, relocating, or responding to shifting market conditions, there may come a time when you need to exit your office lease earlier than planned. It can feel like a legal minefield: contracts, notice periods, penalties, but with the right guidance, a safe and structured exit is possible.

At Acumen Law, we regularly support tenants across Sussex and beyond navigate early lease exits. Here’s what to check first, the options available, and the risks involved, and how to approach things strategically, before costly mistakes are made.

Check for a Break Clause

Start by reviewing your lease carefully. Many commercial office leases include a break clause and a contractual right to terminate the lease early. However, these clauses can be tightly drafted and must be followed to the letter.

For example, a break clause might allow you to exit on the fifth anniversary of the lease if you give six months’ written notice, pay all rent and service charges up to date, and return the premises in good condition. If any part of this process wrong, such as missing the deadline, using the wrong service method, or failing to meet conditions, your break can fail, and the lease will continue.

The courts apply a strict approach here. We’ve seen cases where businesses were still liable for rent years later due to small administrative errors. That’s why legal advice is essential if you rely on a break clause.

No Break Clause? Look to Assignment or Subletting

If your lease lacks a break clause (or the deadline has passed), other legal mechanisms might offer an exit route. The two of the most common are assignment and subletting.

Assignment

An assignment allows you to transfer the lease to a new tenant, who takes over your rights and obligations. This usually requires your landlord’s written consent, and are often required certain conditions, such as financial checks on the incoming tenant or personal guarantees. Even after the assignment is agreed, you may remain liable under an “authorised guarantee agreement” unless specifically released.

Subletting

This allows you to rent out the space to another party, while you remain the legal tenant. You continue paying the rent to the landlord and collect rent from your subtenant. While this may ease cash flow pressures, it doesn’t release you from liability. If your subtenant fails to pay or breaches the lease, the responsibility still sits with you.

Both options involve risks and should be reviewed with legal guidance. You’ll need to consider whether your lease permits assignment or subletting, what the process involves, and how to protect yourself contractually.

Negotiate a Lease Surrender:

When a break clause nor assignment/subletting is viable, you may be able to negotiate a surrender with your landlord, a mutual agreement to bring the lease to an end.

A surrender is usually recorded in a formal deed of surrender and may involve a surrender premium, a financial payment to compensate the landlord for lost rent or inconvenience. Landlords are more likely to agree to a surrender if they have another tenant ready or the space is in high demand.

While this route can offer clarity and closure, it still requires care. You’ll need to deal with dilapidations (repair works), your obligation to return the property in a certain condition, final service charges and possible legal costs. Leaving these unresolved can lead to claims after the lease ends.

A clean exit depends on the terms of the surrender being clearly documented and all liabilities being closed off properly. This is where working with a legal team experienced in commercial property is crucial.

Risks You Shouldn’t Ignore

Whatever route you take, exiting a lease early carries potential risks:

• Dilapidations Claims: Costs for repairs or reinstatement after you leave.
• Personal guarantees: Continuing liability if you provided a guarantee when signing
• Credit and legal consequences: Non-compliance can result in County Court Judgements (CCJs), harming your business credit and future leasing prospects.

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These issues often arise months after a lease ends, so early legal advice is essential to prevent unexpected claims.

Why Acumen Law?

 At Acumen Law, our Commercial Property team understands both the legal and commercial pressures of exiting a lease early. Based in Hove, we help businesses across Sussex and the South East, navigate lease exits with clarity and confidence.

We can:

• Review your lease and explain your rights without the legal jargon;
• Serve break notices correctly and on time;
• Advise on assign mentor subletting strategies;
• Negotiate surrender terms and handle all legal documentation;
• Protect yourself against future claims or personal liability. 

Leaving a commercial lease early isn’t easy, but with the right approach, it can be done without unnecessary cost and stress. Acting early is key, the sooner you seek advice, the more options you’ll have.

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