French Leaseback : Is my commercial lease over ?
End date doesn’t mean end of the lease with the operator
The expiry of a commercial lease does not automatically mean that it is no longer in force. The lessor/owner of a tourist/student residence is not “without a lease” or free of any obligation to the operator/tenant of the premises.
It means that the landlord cannot reclaim his property once this date has passed.
There are two possible scenarios: 1. the operator leaves and the apartment is vacated without compensation; 2. the tenant stays and the landlord must pay him compensation for eviction, continue the old contract or sign a new one.
Moreover, the parties are not in a “legal vacuum”. All the clauses of the old commercial lease remain in force, in particular those relating to rent, charges and works.
These complex rules may seem counter-intuitive to those unfamiliar with commercial lease law. Worse still, it is rare for marketers of tourist/student accommodation to explain these specific rules to prospective owners who will discover them 9 or 18 years later.
Please, feel free to ask us any questions.
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