Closing a site that has a subtenant or licensee
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Another business may occupy a room, yard or part of your workshop. Include that occupation in the premises review before promising the whole site will be available on a particular day.
Begin with the arrangement as it exists. Calling someone a licensee in an internal note does not settle the legal position. Give the property solicitor the agreement, subsequent correspondence and the facts about how the space is used.
Map the occupied areas and agreements
Create one entry for each party, including informal arrangements that need clarification. Record the business name, contact, area used, access arrangements and documents held. Add the proposed change your business wants to make.
The resulting record might look like this fictional example:
| Occupier | Current use | Evidence available | Question needing advice |
|---|---|---|---|
| Separate repair business | One workshop bay and shared yard | Signed agreement with a plan | What must happen before the proposed site exit? |
| Local supplier | Storage in a rear room | Emails and recurring invoices | What is the legal and practical arrangement? |
| Group company | Office desks and access to records | Internal arrangements to locate | Who needs to agree the change? |
Keep intended dates separate from dates the parties have properly agreed. Do not book a contractor on the assumption that another occupier will simply follow your business's closure date.
GOV.UK's commercial lease guidance explains that subletting does not itself end the original lease. For premises in England or Wales, ask your solicitor to review both the head lease and the other occupation arrangement. Use advice appropriate to the jurisdiction elsewhere.
Find the practical dependence
The other occupier may use an entrance, alarm, service or facility that your closure would change. Ask them for the factual information the property and project advisers need. Do not treat their dependence on your arrangements as permission to alter or stop those arrangements.
In the repair-bay example, returning the front office may affect access to the yard even if the workshop bay remains untouched. Use the partial handback questions to make those shared boundaries visible.
Also identify equipment belonging to each occupier. Keep it out of any provisional sale inventory unless the relevant ownership and authority have been established. Physical proximity is not enough to include it in your business's asset enquiry.
Give the adviser a clear decision to resolve
Explain whether you want every occupier to leave, one to remain, or the landlord to consider a different arrangement. Ask which options can be considered, whose agreement is needed and how communications should be handled. Let the property solicitor advise on notices and any dispute.
Connect the result with your own lease exit route. The proposed treatment of another occupier and your planned exit need to work together. If either party expects to return later, identify that in the post-exit access discussion.
When making an enquiry to UK Auction Group, explain which areas and assets are available for consideration and which remain occupied by others. Share confirmed access restrictions. Keep negotiations and personal or commercially sensitive agreement details with those who need them.
Return to Leaving business premises.
Sources
This guide is general information and education only. Legal, tax, employment and safety decisions may need a qualified adviser who knows your situation. Read the disclaimer.