Monthly Archive: March 2019

What are break notices in a commercial lease?

If you’re renting out a commercial property or intend to acquire a lease to use the property then it’s likely that you’ll come across the term ‘break notice’ at some point. But what are break notices and what should you be aware of if you’re intending to exercise it or just want to understand the notice before you sign on the dotted line?

A break clause is often negotiated between two parts before entering a lease. It’s an agreement that means either the landlord, tenant or both parties have the right to end the lease prematurely by issuing a break notice on the other party. For example, if a business wishes to end their lease early then they must serve a break notice to their landlord, as long as certain conditions are met.

When can I serve a break notice as a tenant?

Be sure to read all the conditions set out in the break clause that you signed when you initially began renting out the property. If you don’t meet the conditions, the landlord is entitled to prevent the tenant from ending the lease early. This is where a solicitor will normally enter the picture, as disputes can arise from the landlord contesting the break clause.

The conditions you must meet will differ depending on what the landlord has included, but there are a number of common conditions that landlords usually insert. You will likely have an obligation to pay all rent owed, any other payments owed and ensure that repair obligations have been met.

It is essential that a break notice is carefully drafted to ensure it meets all the conditions of the lease and the law. If the notice is incorrect in any way, the tenant is usually obligated with seeing out the remainder of the lease. … Read more