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Tenant selling a business under a commercial property lease

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  • Tenant selling a business under a commercial property lease

    Hi

    I have a commercial property tenant who is using the premises as a cafe. They are currently looking to sell the business and hoping to pass the lease on. My query is that I am concerned that whoever my current tenant chooses to sell the business to may not be suitable for whatever reason until they have been checked for suitability and credit worthiness.

    What options do i have if i do not want to transfer the the lease to the new business owner? Am i with in my right not to transfer the lease or are there legal issues with this?

    The current tenant has had the business valued and wishes to sell the business on, but i'm not even sure i want the property to remain as a cafe.

    What obligations do I have to the current tenant?

    Thanks in advance.

    Stephen.

  • #2
    One thing that springs to mind is the current lease - what are the termination clauses? Sale of business?

    Plus wouldn’t there be a new contract with new tenants?

    Read the contract - see a lawyer

    On another note, in this climate - wouldn’t it be wise to keep the property leased?

    cheers

    Donna



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