How it started

We were approached by an existing international client who was looking to wind up its UK business and wanted advice in relation to its rights and obligations under the lease of its business premises.

What we did

We reviewed the lease and provided advice on the options available to the Company to dispose of the lease, being assignment of the whole of the lease; under letting the whole of the premises;  the availability of a break right and the possibility of negotiating an early surrender with the landlord. We explained the pros and cons of each option in particular the landlord’s right to request an authorised guarantee agreement on assignment which would then prevent the company from being wound up until such time as its obligations under the AGA had expired, the ongoing direct contractual relationship with the landlord in the case of an underletting, and the risks associated with that should the undertenant fail to pay or comply with its underlease obligations, the limitations and risks of the break right which was a one off right but not for another five years and the possible options with regard to surrender (a surrender and full release, a surrender but with a dilapidations payment in respect of any breach of the repair liability and yield up obligations under the lease; and a surrender for a premium in addition to any dilapidation payment.)

How it helped our client 

We were able to work closely with the client’s external property consultant, with whom we had worked previously for our mutual client, who was then able to liaise direct with the landlord’s agent to ensure that the landlord knew that the Company was fully aware of its ongoing obligations and the need to regulate these prior to winding up the business.

Ultimately an assignee was found. We advised the client on the proposed heads of terms and then liaised with both the landlord’s solicitor and the assignee’s solicitor to negotiate the necessary documentation for an authorised assignment of the lease which included a full release for the company and its guarantor without the need for an AGA, thereby allowing the company to proceed with its proposed solvent winding up. We had built up an excellent relationship with the landlord’s solicitor when we acted for the client when it took the lease originally which ensured that the application for consent to assign progressed smoothly and amicably.

Contact us

For more information on our commercial property services and how we can assist with exiting business premises, please contact a member of our team.