Introduction to this document

 

Break clause notice

A break clause in a business lease allows one or both parties to end the lease early, as long as certain conditions are met. No two leases are the same, so to ensure you get it right, always check the lease to see what it says about serving a notice.  For example, if it says the notice must be served on a particular person/address, or in a particular way, then make sure you do this otherwise your notice will be invalid. 

Tenant’s checklist

You must have obeyed all the covenants in your lease and your rent and 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 refuse your request to the break clause.

 

Landlord’s checklist

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 the lease is one that’s subject to and protected by the Landlord and Tenant Act 1954, make sure you also comply with the provisions of this Act, e.g. you will also need to serve an s.25 notice.