Question
We are the tenant of commercial premises in central London which
we have occupied for five years. The lease is for a term expiring
in 2035. If the UK leaves the EU our business in the UK will no
longer be viable and we are seeking to relocate the business to
France. The lease permits assignment and underletting on terms, but
in the current market it is proving difficult to find another
tenant. Can we argue that the lease is frustrated in order to bring
our obligations under it to an end?
Answer
On the current state of the law, an argument that your lease is
frustrated by the UK's decision to leave the EU will fail
unless you are able to show that there was a common purpose that
the lease should come to an end if you need to relocate the
business.
