Whether you’re a landlord or a tenant, understanding how a commercial lease can end is key to avoiding disputes and planning ahead.

So, how do commercial leases actually end? Here are the main routes:

·      Natural expiry – The lease runs its full term and ends as agreed.

·      Mutual surrender – Both sides agree to terminate the lease before expiry.

·      Break clause – Either party ends the lease early, if the contract allows.

·      Forfeiture – The landlord ends the lease due to breach of terms.

·      Repudiatory breach – One party commits a serious breach, allowing the other to treat the lease as terminated.

·      Frustration – Rare but applies if the lease can’t be fulfilled due to unforeseen events.

·      Merger – The lease ends when the tenant and landlord interests combine

Each route has legal and financial implications which need to be considered by both parties.

We have explained each method in detail in our latest article, including key consideration and guidance.