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Case Information
Business Type:
Cafe
Category:
Lease Renewal
Date:
25 January, 2023
Securing a Favourable Lease Renewal for a Growing Business
Our client, the owner of a thriving independent café, faced a major dilemma as their 10-year lease term came to an end. Their landlord offered a lease renewal but with harsh new conditions:
A 30% rent increase
Responsibility for full structural repairs
No option to terminate early if the business needs changed
The client was concerned about committing to such onerous terms, particularly given the economic uncertainty, but feared losing their location if negotiations soured.
How Lease Lawyers helped:
- Negotiated the rent increase down to 15%, phased over three years
- Limited repair obligations to internal, non-structural elements only.
- Secured a tenant-friendly break clause exercisable after three years with six months’ notice.
- Clarified ambiguous terms that could have led to hidden liabilities.
The client renewed their lease on terms that supported their continued growth while managing risk. They avoided unnecessary financial burden and gained flexibility to adapt to future changes.