Commercial lease termination in Belgium: rights of landlord and tenant
The commercial lease in Belgium offers both tenants and landlords a solid legal position. The termination of a commercial lease is subject to strict rules and requires an accurate knowledge of the Commercial Lease Law.
Minimum duration and extension
A commercial lease is concluded in Belgium for a minimum duration of 9 years. The tenant is entitled to three renewals of nine years each, giving a maximum total term of 36 years, and must request renewal between the eighteenth and the fifteenth month before the lease expires, on pain of forfeiture, unless the landlord invokes a valid reason for termination.
Termination by the landlord
The landlord may terminate a commercial lease in certain cases, subject to compliance with the statutory notice periods and grounds for termination: own use, demolition or reconstruction, or serious breaches by the tenant. On termination the landlord owes an eviction indemnity calculated on a sliding scale: one year's rent where the premises are given a use other than trade or are rebuilt; two years' rent where the landlord, or a close relative, carries on a similar business there; and three years' rent plus damages where the landlord fails, without serious reason, to give effect to the ground relied on within six months and to maintain it for at least two years.
Termination by the tenant
The tenant may terminate the commercial lease at the end of each three-year period, subject to 6 months' notice via service by the judicial officer or registered letter. Early termination may result in compensation to the landlord.
Novex Advocaten in commercial lease disputes
Novex Advocaten assists landlords and tenants in commercial lease disputes, termination, eviction and damages before the Enterprise Court or the justice of the peace in Brussels.
Commercial lease problem? Contact Novex Advocaten for legal advice.