Options to Break

 

 

 

With the reluctance of tenants to accept the long leases demanded by the landlords, Options to Break the lease at an earlier time than the lease specifies are now frequently drafted into leases. Such options can be for the landlord or the tenant or both to exercise. The procedure is usually for which ever party wishes to end the lease to serve written notice on the other some months before the break is to operate.

 

The drafting of such clauses is very important and, in many cases, the tenant must have complied with all the other terms of the lease or the notice to break is not valid and the break opportunity may be missed entirely.

 

Landlords can often build such clauses into leases where they have redevelopment ambitions. In such cases tenants should consider carefully the cost of their fit out if the lease can be ended prematurely. In such cases the cost of fit out  and the move into the premises will have to be written off. In such cases however the landlord can usually not recover dilapidations from the tenant.  

 

We can provide detailed guidance on such matters.