A Reminder About the ‘Holiday Clause’ in Commercial Lease Law

Learn more about the so-called “Holiday Clause” below — an important provision to be aware of during the holiday season.

Assignment of a Commercial Lease

Under Swedish tenancy law (Chapter 12 of the Land Code), assigning a commercial lease is generally not permitted without the landlord’s consent. However, a commercial tenant can formally request permission from the landlord to transfer their lease to another party.

Response Timeframe

The landlord then has three weeks to respond to this request. If the landlord fails to reply within this period, the tenant has the right to terminate the lease agreement early, observing the statutory notice period (usually nine months). The three-week period starts from the day the landlord receives the request, and it is the tenant’s responsibility to prove when the landlord was notified.

If the tenant sends the request by registered mail, the response deadline typically begins when the landlord has had the opportunity to collect the letter.

Consequences

This provision, commonly referred to as the “Holiday Clause,” means that a long-term commercial lease can be terminated prematurely if the landlord is unaware of the obligation to respond within the three-week timeframe. The landlord must also have a valid reason to refuse the request, such as if the proposed new tenant lacks sufficient financial capability to pay the rent.