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Thomas
Thomas, Solicitor
Category: Property Law
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Experience:  UK solicitor holding an England and Wales practising Certificate.
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Hi I am looking at a commercial lease and i need help with

Resolved Question:

Hi I am looking at a commercial lease and i need help with explaining following sentence

"Date of termination" means 20 April 2026 or sooner termination of the lease (however the same may be determined);
Submitted: 3 years ago.
Category: Property Law
Expert:  Thomas replied 3 years ago.

Hi

Thank you for your question and patience, I’m Tom and I’ll try to help you.

A lease can be terminate in a few ways:-
1. By the fixed term expiring, so in your case this would be on 20 April 2026
2. By one party using the break clause in the lease (if there is one, you would know whether you have negotiated one or not). Here, one party would serve notice under the specific break clause in the Lease on the other party. Provided they comply with the conditions of the break clause then the notice will terminate the lease on a specific dat. So, the termination date would be sooner than the expiry of the fixed term. This means that the words “or sooner termination of the lease (however the same may be determined” must be included in the lease
3. By forfeiture – this is where you do not comply with an obligation in the lease (eg to pay rent) and the landlord uses the forfeiture clause in the lease to evict you. This would be before the expiry of the fixed term of the lease and, again, the words “or sooner termination of the lease (however the same may be determined must be included.

Basically, provided the landlord does not have a right to terminate the lease AND you comply with the conditions of the lease the “Date of Termination” will be the expiry date of the lease if you occupy the property for the whole term.

The words ““or sooner termination of the lease (however the same may be determined” do not limit the fixed term of the lease, so you don’t have to worry about that.


My goal is to provide you with a good service. If you feel you have received anything less, please reply back as I am happy to address follow-up issues specifically relating to your question.


Kind regards,


Tom
Customer: replied 3 years ago.

Many Thanks Tom,


I am still little confused. I think i shall explain little further.


 


I am looking to buy this commercial property, with sitting tenant. I have read the lease over many times, and i can't see any break clause (dates) in the lease, but having this sentence worry me that in case i am missing something in the lease.


Many Thanks


Ash

Expert:  Thomas replied 3 years ago.
Hi,

If there is no break clause in the lease, then the only way that it would be terminated early than the expiry of the fixed term (ie. 20 April 2026) would be if you breached the lease and the landlord forfeited the lease to evict you.

If they did evict you then the lease would be terminated early than 20 April 2026 and therefore the wording must be included.

If you comply with your obligations under your lease then the landlord will NOT be able to terminate the lease and you will be able to stay until 20 April 2026. The wording on "sooner termination" does not change that fact.

Please do remember to rate my answer once you are finished.

Kind regards,

Tom
Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7590
Experience: UK solicitor holding an England and Wales practising Certificate.
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