A landmark case involving Marks & Spencer highlights the importance of businesses understanding the terms of a commercial property lease. Coodes Partner and Head of Commercial Property Helen Willett explains.
“A unanimous decision saw the Supreme Court dismissing Marks & Spencer’s claim that it was owed a refund of £1.1million rent on its office space in Paddington. M&S had ended their lease early and then sought a refund on payments made in advance to the landlord, including rent, car parking and insurance for the period after they left the building. The Supreme Court deemed that M&S were not entitled to a refund according to the terms of their contract.
“The result might be surprising to many people, who would perhaps have thought it only fair that M&S should get the rent paid back. It is significant that the decision came down in favour of the landlord and I hope businesses will consider the implications for any of their rental property. The case highlights the importance of any business addressing the question of ending a lease early when they are negotiating the terms of a lease. The only way to avoid being caught out as M&S were, is to have a clause written into the contract.”
For more information on this or any commercial property enquiries contact Helen Willett Head of Business and Commercial Services at Coodes on 01736 362294 or email email@example.com