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Tenant Break Options in Commercial Leases


Due to the economic client more tenants are negotiating break options in commercial leases.


A break option allows the Tenant to terminate the lease of serving notice to the other party. They can be either a rolling break option, this can be exercised at any time on notice, or a set date break option.


Landlords will generally wish to avoid break options as it provides the tenant with flexibility.


When negotiating a break option care needs to be taken to ensure the terms of the break option are reasonable. Break options can be conditional i.e. the rent must be up to date; there must not have been any material/substantial breach of the terms of the lease etc.


Quite often tenants agree the terms of the lease before they instruct a solicitor. My advice would be to instruct a solicitor when negotiations on the lease terms start to ensure that the lease terms agreed are appropriate.


If you need any assistance in negotiating lease terms please contact me Christie Limb at climb@fidler.co.uk or if you need a quote for taking on a lease please use the online quote system at    http://www.fidler.co.uk/commercial_conveyancing/index.cfm.


Christie Limb






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