By Imogen Fleur, Solicitor, Commercial Property,
Break dates can be fixed, on a rolling basis, or dependent on specific events. Strict break clause conditions are often imposed on tenants, as a landlord will not benefit from an empty premises.
Why parties may want a break clause:
A landlord may have future development plans for the premises or have granted a lease to a tenant when market rents were low and wish to grant a higher rental rate lease to another tenant.
The premises may no longer suit a tenant’s business needs or the tenant entered a lease when market rents were high and wishes to seek a lower rental rate lease.
Consider your notice:
Often six months’ notice on the other party is required however this may vary. Notice may need to be served in a prescribed way. Check the agreed terms of your lease - you do not want the validity of the notice to be disputed.
Consider any conditions:
A tenant may be required to be up-to-date with all rent or all payments relating to the lease, to have complied with all tenant covenants and to provide vacant possession upon the break date.
Before entering a new commercial lease, it is important to obtain legal advice to understand the provisions of a break clause. If you are already in a commercial lease and wish to break your lease, seek legal advice as early as possible to ensure compliance with your break clause conditions.
If you wish to discuss this further, please do not hesitate to contact Imogen Fleur by email: ixf@cooperburnett.com or tel: 01892 515022
This blog is not intended as legal advice that can be relied upon and CooperBurnett LLP does not accept any responsibility for the accuracy of its contents.
This blog was originally published in the Tunbridge Wells Business Magazine: https://twbusinessmagazine.com
