This edition’s guest spot - Commercial Property

Tim Williams and Kathryn Johnston from BPE’s Commercial Property team provide essential tips for any business that leases property and may be considering a move in 2014.

Break Clauses - Top Tips

Failing to comply with the conditions of a break clause can potentially cost a Tenant hundreds of thousands of pounds. Here are our top tips to avoid encountering common pitfalls:

Ensure you do want to end your lease. Once notice is served it cannot unilaterally be withdrawn;

Do not leave it until the last minute! Diarise when the break date is and when the notice period starts to run;

Less is not more, do err on the side of caution; serve the notice in good time and strictly in accordance with the lease;

Ensure that you confirm with your Landlord the amount owing (rents, interest, service charge etc.) and that it is paid in advance of the break date; and

Where works are required to the property, ensure that it is completed in advance of the break date to give vacant possession.

Whilst the above may seem simple there is no breach too small, technical or unfair that would not result in a loss of the right to break. If in doubt the best course of action is to take some advice early on. It is better to be compliant from the start than to sort out any complications nearer the break date.

If you have any questions relating to this article please email:

Tim Williams - tim.williams@bpe.co.uk or call 01242 248453

These notes have been prepared for the purpose of an article only. They should not be regarded as a substitute for taking legal advice.