Closing a Business - How does the lease work.

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PDCAT

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Hi Folks

My wife owns a beauty salon for the past 8 years. Her lease from the landlord has 10 years left. She is pregnant, expecting twins and she hasn't made her mind up whether to keep the business, sell it on (if possible) or close it.
Just wondering, does anyone know, with regard to closing the business - what happens to the fact that she has 10 years left on the lease contract. Does she pay the landlord money to break out of the lease or how does this work?

Thanks for you help.
 
If she has personally signed a lease, she is obliged to pay the landlord the rent for the next 10 years.

She will be able to sub-let it with the landlord's consent. However, she still remains liable for the rent which she must pay to the landlord. if she can let it for more than she is paying, she keeps the difference. If there is a shortfall, she has to make it up.

She can enter into discussions with the landlord. He may agree to accept, say one year's rent, if she hands back the keys now. Of course, he could refuse and insist that she sticks to her lease.

This obviously assumes it's a standard lease with no break clause or provision for early termination. So first, of all read the lease. If you don't understand it, ask the solicitor who advised her on entering the lease in the first place, if she used a solicitor.
 
In practice the landlord is not always in such a strong position and you should seek legal advice. Most of my clients in similar situations have been able to extract themselves from this problem. VAT may also be a problem as it appears her lease is quite long and she should speak to her accountant as regards the VAT implications of a lease surrender.
 
Wondering if you could help me out here please. Signed a commercial lease jointly with another individual initial (sole traders) three year term with break clause after 18 months (March 2013), cut a long story short business folded and we moved out once we realized it was not tenable to allow LL to re let unit. Assisted LL in finding new tenant also. LL now coming after us for non payment of rent while we were not in unit, rates etc total circa €21k. I personally don't want a judgement against me and may be able to borrow 50% of this amount from family, friends however other party refusing point blank to pay up as no assets or income and saying LL can bring him to court. I have mortgage on Family home and up to eyes in personal debt accrued trying to keep business open. Have contacted Co.Council and they are open to repayment plan on rates liability but LL playing hardball on other issue, want to be fair and pay my half, how can I impress upon LL my willingness to do a deal and what if he won't agree?
 
Thanks WizardDr, read other post and updated details, don't think estoppel will be a defence as we put new tenant in front of LL off our own bat and LL and new tenant agreed terms. At my wits end over this and sick with worry.
 
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