What is a break clause notice?
A break clause in a business lease allows the tenant to end the lease early, as long as certain conditions are met. One of these conditions is that a break clause notice must be served to end the lease early in accordance with the requirements of the break clause in the lease. Use our simple interview to create a Break clause notice.
How does this apply to me?
As a landlord of commercial premises, your tenant may ask to allow a break clause in their lease, meaning that they can end their lease early.
As a tenant of commercial premises consider asking for a break clause allowing you to end your lease early. Make sure you follow the correct steps if you choose to exercise the break clause and end your lease early.
Tenants checklist
You must read the break clause in your lease before you offer the notice and make sure that you comply with any conditions about how the notice should be served.
The break clause will specify the time in which the notice should be given. You must serve the notice at the correct time - usually six months before the date inserted in the break clause. Check to be sure.
You must have followed all the rules of the lease and all your rent, other payments and repair obligations must be up to date. Failure to comply with the terms of the lease can give the landlord the opportunity to contest the break clause.
You only need to leave the property on the specified break date if the break clause in your lease has no conditions attached.
If in any doubt about the timing of the notice or any necessary conditions, we recommend you Ask a lawyer.
Landlords checklist
It is important to check that the tenant understands how and when to serve notice of the break clause. You can then ensure the rules of the break clause are correctly followed.
Check that all terms and conditions of the lease have been complied with and all rents are paid and up to date before you accept the break clause notice.
If you have allowed an unconditional break clause and your tenant wishes to break from the lease, make sure the tenant will leave the property on the break date.
