Managed Office accomodation

[Obiwonkeyblokey]

I have a question.

My company is in serviced accomodation in which we have been for 2 and a half years. At the beginning of last year we were asked to sign a 4 year lease on our office based on 4 individual licenses of a year each. 2005, 2006, 2007, 2008. At the time we expanded into two 6 person offices.

We then found that we needed a bigger space so moved everyone into a 14 person office in October last year, however at the time we did not sign a lease on the new office.

We are now in a situation where we need to move and are purchasing our own property. I have given our current landlord 3 months notice as I felt that this was reasonable, however he is implying that they will sue us for the balance of the signed leases ( another 2 and a half years worth). Bear in mind we have not signed a lease on the current office.

Could someone with some experience in this situation perhaps comment? I am going to go anyway and feel that I am being perfectly reasonable giving the notice as the whole point of the serviced office is to be flexible. The landlord has also indicated that the businesscentre is full and that he could probably refill our office anyway.

Thanks

>> Edited by Obiwonkeyblokey on Wednesday 31st May 16:28

[Plotloss]

If its anything like residential.

Lets say you split, leaving an empty office.

For the landlord to claim for the 2.5 years rent he will have to prove that he mitigated his losses by way of attempting to market with view to re-renting the property.

If he is deemed to have not fully mitigated his position he has no case, if he does get a tenant in then you are only liable for the shortfall between the time you leave and the new tenant takes over.

[billsnemesis]

If you have vacated the property on which the four year deal was agreed then throw the phrase "surrender by operation of law" at the landlord.

By moving premises you have carried out an act that is inconsistent with the concept of the four year deal carrying on so the agreement has come to an end.

The catch is that they might allege that you have varied the original deal or that it might have contained something about being able to relocate while keeping the original deal in place.

It is essential that you get a lawyer to check out the details. The relocation is a strong argument that you have reset the clock and need another document to record the new deal but there might be something in the documents that keeps the duration of the original deal alive if you move around within the building.