Advice on Break Clause Compliance

A Tenant’s operation of a break clause at the interim stage of a lease term is an onerous process and fraught with risk.  Non-compliance with the terms of a conditional break clause can be financially devastating to a business, particularly where the next break date or lease expiry date is many years away.  The financial impact of this is further compounded if the tenant has already signed a lease on alternative premises and may, therefore, inadvertently become liable for rent on two properties, one of which they no longer wish to occupy.

 

In order to mitigate the risk of failing to comply with the terms of a break clause and, thus, ensure the lease is effectively terminated on the desired break date, we provide strategic guidance as to the works necessary for the tenant to complete in order to ensure no material breaches remain on the break date. 

 

We can also agree a Settlement Agreement & Form of Release to ensure the conditions of the break clause are met by way of a financial settlement where the Tenant does not wish, or is unable, to physically implement the necessary compliance works.

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