Breach of Commercial Lease by Landlord

A commercial lease is a legally binding agreement. It outlines the rights and responsibilities of both the landlord and the tenant. If a landlord breaks the lease, tenants have legal rights and remedies to protect their interests.

If your landlord breaches the commercial lease, you have legal rights and options to protect your business, including claiming damages and early termination.

If your landlord breaches your commercial lease, call our commercial lease solicitors at 0203 417 3700 for quick resolution of landlord-tenant disputes.

Table of Contents

What are common ways a landlord can breach a commercial lease?

A landlord can breach a commercial lease in various ways, affecting the tenant’s business operations and legal rights.

A landlord might break a commercial lease by:

1. Failure to Maintain & Repair the Property
2. Non-Payment of Utility Bills
3. Unlawful Eviction
4. Unauthorised Alterations to the Property
5. Breach of Quiet Enjoyment Rights
6. Breach of Lease Terms by Landlord
7. Not Insuring the Property

1. Failure to Maintain & Repair the Property

A landlord may breach a commercial lease by failing to maintain and repair the property, especially if they are responsible for the structure, exterior, or common areas.

Landlords are usually in charge of structural repairs and upkeep. If they ignore essential repairs like a leaking roof, faulty plumbing, or heating problems, the place can become unsafe and unclean. This can harm your business, leading to financial loss or damage to your reputation.

2.  Non-Payment of Utility Bills

If a landlord is supposed to pay utility bills (like electricity, gas, or water) but doesn't do so, it can cause service disconnections. This severely disrupts your business.

3. Unlawful Eviction

A landlord must follow legal steps before evicting a tenant and failure to do so is unlawful and considered a serious breach of the contract.

These steps include:

• Giving proper notice
• Getting a court order (if needed)
• Lawfully enforcing a forfeiture clause

If a landlord locks out a tenant, cuts off utilities, or removes belongings without legal reason, it's also considered unlawful eviction and breach of contract.

4. Unauthorised Alterations to the Property

Unauthorised alterations to the property occur when a landlord makes changes to the structure of the building or alters its use without obtaining the necessary consent from the tenant or local authorities.

In such cases, the tenant could face disruptions, potential violations of zoning laws, or even the need to take legal action to protect their rights.

5. Breach of Quiet Enjoyment Rights

Tenants have the right to quiet enjoyment, meaning they can use the property without unlawful interference.

If a landlord harasses the tenant, disrupts business operations, or restricts access, they may be in breach.

6. Breach of Lease Terms by Landlord

Breach of lease terms by a landlord occurs when the landlord fails to meet the obligations specified in the commercial lease agreement.

This failure disrupts the tenant's business operations or rights under the lease, and the tenant may have grounds for legal action.

7. Not Insuring the Property

Not insuring the property refers to a situation where a landlord fails to maintain the necessary insurance coverage for the building as required by the commercial lease agreement.

If the landlord fails to maintain adequate insurance, the tenant may suffer financial loss in case of damage or fire.

This failure to insure the property could be considered a breach of the lease, as it compromises the safety and security of the tenant's operations.

What legal rights does a tenant have if the landlord breaches the lease?

If a landlord breaches a commercial lease, tenants have several legal rights, including:

• Right to Claim Damages
• Right to Withhold Rent (In Some Cases)
• Right to Repair & Deduct Costs
• Right to Terminate the Lease (Repudiatory Breach)
• Right to Take Legal Action

Right to Claim Damages

Tenants may be entitled to financial compensation if they suffer losses due to the landlord’s breach (e.g., lost business revenue due to property disrepair).

Right to Withhold Rent (In Some Cases)

In certain circumstances, tenants may be able to withhold rent until the landlord fulfils their obligations, though legal advice is strongly recommended before doing so.

Right to Repair & Deduct Costs

If the lease allows, tenants may carry out necessary repairs themselves and deduct the costs from the rent (often called a "self-help" remedy).

Right to Terminate the Lease (Repudiatory Breach)

If the breach is serious and ongoing, the tenant may have the right to terminate the lease early without penalties.

Right to Take Legal Action

Tenants can take the landlord to court to enforce lease obligations, seek damages, or apply for an injunction to stop unlawful actions.

What should tenants do if a landlord breaches the lease?

If you think your landlord has broken the lease, here's what to do:

Step 1: Review the Lease Agreement

Look closely at your lease for:

• The landlord’s obligations (like repairs and rent).
• Any dispute resolution procedures in the contract.

Step 2: Gather Evidence

• Keep records of all communication with the landlord.
• Take photos or videos of any problems.
• Get witness statements if you can.
• Track any financial losses because of the breach.

Step 3: Notify the Landlord in Writing

• Send a formal letter or email about the issue and the lease terms.
• Ask for a reasonable deadline for the landlord to fix the problem.
• Keep copies of all letters or emails.

Step 4: Consider Mediation or Arbitration

• If the landlord doesn't respond, mediation could be quicker and cheaper than court.
• Some leases say you must try arbitration before going to court.

Step 5: Take Legal Action (If Necessary)

If the landlord won't fix the problem, you might:

• File a court claim for damages if you've lost money.
• Seek an injunction to make the landlord comply.
• Terminate the lease if you can legally do so.
• Consult with commercial lease solicitors to explore the available options.

What legal actions can I take against my landlord?

You can sue the landlord for damages to recover any financial losses or expenses incurred due to their breach.

If your landlord breaks the lease, you have several legal options. These depend on the specific situation:

Claim for Damages

You can sue the landlord for damages. This is to get back any money lost or spent because of their breach. This could be due to lost profits, repair costs, or other financial issues.

Specific Performance

If the landlord didn't do what they were supposed to (like repairs), you can ask for a specific performance order. This order makes them do what they agreed to in the lease.

Injunction

For ongoing breaches, like an illegal eviction or property changes, you can get an injunction. This stops the landlord from doing these things.

Termination of the Lease

If the breach is big and stops you from using the property, you might legally end the lease. You could use a forfeiture clause or the idea of frustration of a contract.

Court Action

If talking, mediation, or arbitration doesn't work, you can go to court. Here, you might claim breach of contract or seek other legal remedies.

Before starting legal action, consult with our commercial lease solicitor. We can help you understand your case, collect evidence, and make sure you're following the right legal steps.

Can I stop paying rent if my landlord breaches the lease?

The tenants cannot stop paying rent if the landlord breaches the lease unless the breach is significant and affects the tenant's ability to use the premises.

It’s advisable to consult a commercial lease solicitor and review your lease agreement for any clauses that allow rent withholding in certain cases.

Can I sue my landlord for breaching the lease?

Yes, you can sue your landlord for breaching the lease and claim compensation for financial losses caused by their failure to fulfil obligations.

In addition, you can take action to ensure the landlord meets their obligations, such as making repairs or resolving other issues mentioned in the lease agreement.

In certain situations, you may seek an injunction, a court order that halts the landlord from continuing the breach or taking actions that violate the lease.

Can I terminate my lease early due to the landlord’s breach?

Yes, you can terminate your lease early if the landlord breaches the agreement, depending on the breach's severity and the commercial lease terms.

If the breach is serious and ongoing, you may be able to:

• Terminate under a break clause (if available).
• Claim a repudiatory breach, which allows lease termination.
• Negotiate an exit with the landlord.

What legal actions can I take against my landlord?

If your landlord breaches the terms of your commercial lease, there are several legal actions you can take to protect your rights and seek remedies.

Here are some common legal actions:

Can a solicitor help me if my landlord breaches the lease?

Yes, our experienced lease dispute solicitor in London can help if your landlord breaches the commercial lease agreement.

Our commercial lease solicitor can:

• Review your commercial lease agreement.
• Advise on your legal rights.
• Explore available options and dispute resolution.
• Draft legal notices or demand letters.
• Represent you in negotiations or court proceedings.

Need expert legal assistance?

Call our Wembley Solicitors at 0203 417 3700 if your landlord breaches your lease and let our commercial lease solicitors help resolve your dispute.