Break Clauses

As with all lease events, timing is critical. Nowhere is this more true than in the handling of break clauses.

All leases are different and each will treat the notices required for serving a break differently. Whether landlord or tenant, break notices can provide enhanced lease flexibility but can be made worthless without careful planning and a proper interpretation of the legalities of the lease and its obligations.

Whilst some break requirements are relatively straight forward, others include more onerous obligations which often have severe time implications, like ensuring repair obligations are up to date. It is essential to have a full appreciation of the required timings associated with a break and a clear business rationale underpinning all action.

Break Clause Procedure

• Identify business drivers
• Review lease obligations with solicitors
• Make recommendations on timing and action
• Prepare budgets and options
• Negotiate break and provide clean exit or lease restructure
• Reporting throughout on progress and any changes to strategy