LITHUANIA Law and Practice Contributed by: Evaldas Klimas and Vygintas Kuprys, WALLESS
6.14 Tenant’s Ability to Alter and Improve Real Estate As a rule, the tenant is only permitted to alter or improve the real estate if they have prior con - sent from the landlord. The lease agreement usually includes certain conditions under which the works must be performed (specific hours for performance of works, quality of materials used, etc). 6.15 Specific Regulations No response has been provided in this jurisdic - tion. 6.16 Effect of the Tenant’s Insolvency The lease agreement usually gives the land - lord the option of terminating the lease agree - ment upon the tenant’s insolvency. The landlord is also included in the list of creditors for any unpaid amounts before the termination of the lease agreement and other debts of the tenant. 6.17 Right to Occupy After Termination or Expiry of a Lease According to the Civil Code, if the tenant contin - ues to occupy the premises after the expiry of a lease, the lease agreement becomes a lease for an indefinite period and each party may termi - nate that agreement by serving the other party with a three-month written notice. Commercial lease agreements usually include an express provision that the lease does not become a lease with an indefinite term. Commercial lease agreements usually include a specific procedure for the vacating of the prem - ises after the expiry or termination of a com - mercial lease. If the tenant fails to vacate the premises under the agreed terms, the landlord is usually entitled to terminate the supply of utility services, enter the premises and remove the ten -
ant’s belongings and this cost has to be borne by the tenant. 6.18 Right to Assign a Leasehold Interest As a rule, the tenant is only permitted to assign its leasehold interest in the lease or to sublease all or a portion of the leased premises with the prior consent of the landlord. 6.19 Right to Terminate a Lease The lease may be terminated: • by mutual agreement of the parties; • by either party’s demand, if the other party commits a material breach and fails to rectify that breach in due course (the parties may agree on what is to be considered a material breach under the agreement, otherwise, the material breach is to be determined based on statutory provisions); or • on other grounds set out in the agreement and the parties are free to establish any grounds for unilateral termination of the agreement, either through the judicial proce - dure or without applying to court. The landlord is entitled to terminate the lease agreement unilaterally if the tenant: • fails to use the leased objects in line with the agreement/permitted use; • worsens the condition of the leased objects wilfully or through negligence; • fails to pay rent and/or other payments under the agreement in time; • unreasonably refuses to sign the handover deed or does not sign it in due time; • fails to perform repair works on the premises; or • commits another material breach.
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