Break clauses in commercial leases
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Contact our teamBreak clauses in commercial leases provide essential flexibility, allowing either tenants or landlords to terminate the lease before its official end date.
Whether you’re a tenant looking for the option to exit early due to changing business needs, or a landlord who wants to maintain control over the future of your property, break clauses offer that critical advantage. However, properly understanding and utilising a break clause is key to ensuring you avoid pitfalls and secure a beneficial outcome.
At Moore Barlow, we help clients navigate the complexity of break clauses, providing expert guidance to ensure everything is clear and legally compliant.
The beauty of a break clause lies in its flexibility, but with that comes the need for precision. The conditions for exercising a break clause can be strict, with certain criteria that must be fulfilled to avoid the clause becoming invalid.
Our team of experienced solicitors will ensure you approach this process with confidence, avoiding common mistakes that could jeopardise your interests.
Richard Hughes
Partner | Commercial Property, Real Estate, Real Estate Finance
What is a break clause?
A break clause is a provision within a lease that allows either the landlord, the tenant, or both parties to end the lease early (i.e. before the lease’s full term has been completed). The clause typically outlines specific dates or periods during which this right can be exercised, alongside conditions that must be met for the break to be valid. These conditions often include timely notice of the intention to break, ensuring rent is fully paid, or leaving the premises in a particular state.
The break clause provides flexibility but is not without its challenges. Tenants must be aware of their responsibilities when triggering the clause, while landlords need to ensure that the property will be left in a suitable condition for re-letting. Both parties need to fully understand the legal framework to make the most of the break clause.
How break clauses work
Break clauses are often time-sensitive and condition-bound. The tenant or landlord looking to end the lease must give proper notice within the specified timeframe. The details of how and when notice is given are critical, as missing a deadline or providing incorrect notice could render the break invalid. Equally important are the conditions that need to be fulfilled, such as ensuring no outstanding rent or repair obligations remain unmet.
Failure to meet any of these conditions can mean the lease continues beyond the break date, potentially creating financial or operational burdens for the party intending to exit. This is why it’s so crucial to handle break clauses carefully, with attention to every detail.
How we can help
At Moore Barlow, we are experts in commercial lease law, and break clauses are no exception. Our team provides tailored advice to ensure that whether you’re a landlord or tenant, the break clause works in your favour. We help you meet all the necessary requirements, ensuring the process is handled smoothly and effectively.
For tenants, we guide you through serving notice correctly, ensuring compliance with every clause so that you can confidently break your lease without risk of being locked in. For landlords, we ensure that tenants meet all their obligations before exiting, protecting your property and your interests in the process. Additionally, we offer strategic advice on how to draft break clauses that align with your long-term goals when entering new leases.
Why choose Moore Barlow?
Navigating a break clause can be complex, and any misstep could lead to costly consequences. At Moore Barlow, our extensive experience in commercial property law allows us to handle these matters with precision and care. We offer a proactive approach to ensure that every step, from notice periods to compliance with conditions, is completed correctly, leaving nothing to chance.
Our focus is always on providing clear, practical advice that supports your business or property goals. We take the time to understand your situation and tailor our support to meet your needs, ensuring that the break clause works in your favour and not against you.
Meet our team of commercial property solicitors
Jo Farr
Partner | Commercial Property, Real Estate, Land Development, Real Estate Finance
Richard Hughes
Partner | Commercial Property, Real Estate, Real Estate Finance
Julian Parkes
Partner | Commercial Property, Real Estate, Landed Estates and Farming
Nellie van der Lande
Senior Associate | Commercial Property, Real Estate Finance, Rural Services
Callum Leary
Senior Associate | Commercial Property, Real Estate, Real Estate Finance
Sam Ho
Senior Associate | Commercial Property, Real Estate, Real Estate Finance
Sharon Mays
Senior Associate | Commercial Property, Real Estate, Land Development, Real Estate Finance
Nicola Donnelly
Associate | Real Estate, Plot Sales, Residential Property
Fiona Hampton
Chartered Legal Executive | Commercial Property, Land Development, Plot Sales
Helen Archibald
Consultant | Commercial Property, Real Estate, Land Development
Janice Taylor
Conveyancing Executive | Real Estate, Plot Sales, Residential Property
Who we help
We work with a wide variety of clients, from large property developers and landlords managing vast portfolios to tenants of all sizes looking for flexibility in their lease agreements. Whether you’re exercising a break clause in an existing lease or negotiating one for a new lease, we provide expert legal guidance to help you achieve the best outcome.
Our team has extensive experience across industries, including retail, office, industrial, and hospitality sectors, ensuring that no matter the context of your lease, we have the insight and expertise to help.
Get in touch
If you’re considering exercising a break clause or negotiating one in a commercial lease, get in touch with Moore Barlow today. Our experienced commercial property solicitors are here to ensure the process is handled smoothly, and your rights are fully protected. We’ll provide the clear, strategic advice you need to navigate your break clause effectively, allowing you to focus on what matters most for your business or property management.
Contact our commercial property team
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