Break Clauses
Both landlords and tenants need flexibility within the term of a commercial lease.
Given the unpredictable nature of life and business, break clauses allow either party to end a tenancy agreement early if circumstances demand it.
Our Commercial Property Solicitors can provide you with expert advice on break clauses, ensuring you secure the best possible terms for your business, whether you are a landlord or tenant.
We are a diverse, multi-lingual law firm using cutting-edge technology to deliver efficient, modern, and highly effective commercial property law services. Our extensive experience in commercial property law has earned us a strong reputation for excellence, supported by the UK’s leading Barristers, King’s Counsel, Estate Agents, Independent Financial Advisers, Surveyors, and Lenders who can assist our Commercial Property Department if necessary.
Common Questions About Break Clauses
What is a break clause?
For new businesses, flexibility and agility are essential for success. A break clause in a fixed-term commercial lease allows the landlord and/or tenant to terminate the lease early. Commercial leases typically last five to seven years. Committing to such a term without a break clause can be risky, highlighting the importance of negotiating favourable break clauses.
Securing a beneficial break clause requires careful negotiation. Your Solicitor can provide guidance on approaching the landlord and ensuring the terms are favourable. They will also review the break clause to ensure it is clear and free from unexpected conditions if you decide to exercise it.
What type of conditions are attached to a break clause?
Break clauses often come with specific conditions, such as:
- Payment of all rents and dues under the lease
- Performance of all lease covenants
- No substantial breach of repair covenants by the tenant
- Vacant possession of the premises
- Landlord’s intent to redevelop the property
The break clause should clarify whether these conditions must be met when the break notice is served, on the break date, or both.
The Royal Institution of Chartered Surveyors (RICS) Code for Leasing Business Premises, England and Wales 2020 (Lease Code 2020), which came into effect on 1 September 2020, recommends only two conditions for break clauses:
- Payment of basic rent up to the break date
- Vacant possession with no subtenants or other occupiers
However, the Lease Code 2020 acknowledges that stricter conditions may be agreed upon in the Heads of Terms.
Why Choose Us?
In today’s uncertain times, break clauses are vital for any commercial lease, whether for warehouses, retail spaces, manufacturing sites, or offices. Our Commercial Property Solicitors will scrutinise the proposed terms of any break clauses, ensuring they adhere to relevant guidance. We will also assist you in exercising a break clause, guiding you through the process in line with your tenancy agreement.
We pride ourselves on delivering a personal service, always being available by phone and responding to emails within 24 hours. As a full-service law firm, we can also advise on other commercial matters, such as contracts and dispute resolution.
We will meticulously manage your commercial property transaction or lease negotiation. Our team has the expertise and resources to identify and address every detail of your commercial lease agreement, including break clauses. You can rely on us for commercially sound advice to safeguard your interests.
As businesspeople ourselves, we understand that every decision must make commercial sense. Most of our clients come from word-of-mouth recommendations because business owners in Nuneaton and Warwickshire trust us to negotiate the best terms on their behalf.
We are dedicated to achieving results swiftly and cost-effectively. Our Commercial Property Solicitors will handle your legal concerns, allowing you to focus on your organisation’s growth and success.
To discuss break clauses, please contact us using the form below.
Cocks Lloyd Solicitors provides exceptional Break Clauses and Commercial Property services to clients. People choose and recommend us not just in Nuneaton, Tamworth, Atherstone, Hinckley and Leicester, but across Warwickshire, Staffordshire, Leicestershire and the West Midlands, and the whole of the UK, because we get results.
To receive expert advice and representation regarding Break Clauses and Commercial Property, please contact us using the form below, call us on (0247) 6641642, email via the Request a Callback form on this contact page.