COMMERCIAL LANDLORD AND TENNANT

BREAK NOTICES

Break clauses in commercial leases allow either the landlord or the tenant to terminate a lease early before the expiration of the contractual term (providing certain conditions are met).

From a landlord’s perspective a break clause is a great incentive to prospective tenants as it provides the tenant with a degree of flexibility and protection. It also allows landlords to retain the ability to end a tenant’s lease early if their circumstances change. From a tenant’s perspective a break clause is always advisable as it provides the tenant some form of protection against unknown future events. Should things go wrong in the future a break clause will allow the tenant to terminate the lease before the contractual end date.

If you would like to discuss any of our services with us, feel free to contact us using the form below or give us a call at 0161 669 4621 for a free no obligation chat. We look forward to assisting you with your legal concerns.

BIRCH LAW. For businesses and individuals. PROBLEM SOLVERS, EXCEPTIONAL ADVICE, CLIENT FOCUSED, UNRIVALLED VALUE FOR MONEY.

HOW CAN BIRCH LAW HELP?

If you would like any further information or need advice about any dispute, please get in touch with us today. You can contact us today on 0161 669 4621 or by email on sbirchall@birchlaw.co.uk for a free no obligation chat.

What form can a break clause take?

A break clause usually takes one of two forms:

A break arising on a specified break date, sometimes referred to as an early termination date.
A rolling break that can be exercised at any point during the lease term, sometimes after an initial period has ended e.g., at any time after the first year of the term.

Whether you are a landlord or tenant it is important that the break clause has been drafted clearly to ensure you understand how you can successfully exercise the break.

Conditions attached to a break clause.

It is relatively common for a landlord to try to impose conditions on the successful operation of the break by the tenant. Some of the pre-conditions which a landlord may try to include are:

Payment of all sums due under the lease up to the break date (this would include any unpaid interest, insurance rent, service charge or anything else payable by the tenant).
Compliance with the tenant’s repairing obligations under the lease.
Delivering up vacant possession.
Compliance with all the tenant’s covenants in the lease.

All break clauses impose specific requirements as to how the break right must be exercised e.g. notice must be served in writing at least 6 months’ prior to the break date to a specified address by recorded delivery.

If even one of the pre-conditions is not met, the break will become ineffective meaning you could be stuck with an unwanted lease for the remainder of the contractual term or with a tenant in situ when you had other plans for your property. Early legal advice both in relation to the drafting of the clause and the service of the break notice should be obtained.

Why choose Birch Law for break notices?

At Birch Law our solicitors have experience acting for both landlords and tenants when it comes to break notices. We have acted for clients when negotiating the terms of the break clause. We have also assisted clients with the preparation and service of break notices. Furthermore, we have provided advice and assistance to both landlords and tenants when issues arise as to the validity of break notices. For a free no obligation chat please contact us on 0161 669 4621 or by email at sbirchall@birchlaw.co.uk.

Whichever funding route you choose, you can rest assure that our experienced solicitors will always do their utmost to keep costs as low as possible. If you would like to discuss any of our services with us, feel free to contact us using the form below or give us a call at 0161 669 4621 for a free no obligation chat.

HOW WE CAN HELP YOU

BOOK A TIME TO DISCUSS YOUR MATTER

Please complete our online enquiry form or contact us at sbirchall@birchlaw.co.uk for your free 30 minute consultation. You will be able to choose a time and date that works for you.

MEET WITH ONE OF OUR ADVISORS

Meet with one of our advisors on MS Teams, Zoom, by telephone or in person. They will find out about your legal needs and discuss how best we can help you. We will set out your options and provide transparent costs information so you can make an informed decision as to how you want to proceed.

IMPLEMENT

Once we have agreed on the correct course of action for you, we will then implement and execute your instructions.