10 Jul 2019

Looking for a clean break?

Chances are the lease on your business premises contains a “break clause”.  This is usually a one-off opportunity to bring the lease to an end.  The important bit is that notice usually has to be served in advance, in writing and, very often, there are conditions attached to the break clause such as: “vacant possession” should be provided on the break date; or, rent should be paid up to date at the break point.

So, be aware, as unless strictly managed, break clauses can be defeated by Landlords, costing you (the tenant) many years more rent and outgoings.

Our top tips are:

• Be clear on your break date and the notice period – do not leave serving notice until the last minute.
• Serve your notice through a solicitor – it’s a worthwhile insurance.
• If you are serving a break notice directly (not advised – see above) then ensure it goes to the proper Landlord, quotes the lease and that you get confirmation of delivery.
• If a condition for the break is “vacant possession”, be absolutely sure you can offer full vacant possession on the break date – this means no furniture left behind, no packing boxes (seriously), etc. If you have sub-tenants remember to ensure they leave full vacant possession too!
• If “all rent to be paid” is a condition, check this before the break date too. Be especially aware if the break date and the next quarter of rent is the same day. Rent is due for the whole quarter, on the quarter day.
• Remember, once served, a break clause cannot be revoked!

 

If you have a break clause and are unsure of what to do, please do not hesitate to contact us for advice:

Tim Richards on 020 7629 1533

 

Are you looking for new business premises?

Do you want to reduce your space needs?

Do you want to extend your lease?

To discuss any of these matters, please give us call.

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