A well-known Canterbury business was over-committed to an expensive long-term lease on a too-big new building, which was causing the business financial strain.   It had attempted to mitigate the situation by subleasing about half the building to subtenants, but it was clear an exit strategy still needed to be found.  Critically, it would have to be one that worked for the landlord too.

Mark assisted the tenant attempt to negotiate commercial terms with the landlord for a possible lease-exit deal.   However, it quickly became clear that the parties believed that if a deal was made to end the head-lease that the sub-leases would all end too and the landlord would be left with an empty building.  For this reason, the commercial negotiations were not progressing well. 

But the parties’ presumptions about the subtenants weren’t legally correct.  Mark was able to identify a pathway by which the sub-tenancies would not be extinguished and would continue, as binding direct tenancies with the landlord.  With this understood and an acceptable tenancy position available, the landlord was better motivated to negotiate a deal to end the remainder of the head lease.  A deal was done, and Mark prepared the necessary documents and managed the messaging to the subtenants to ensure a smooth transition.