Break notices

Break notices

"Thank you for all your help on dealing with this particularly difficult matter..I am delighted you were on our side on this."

Russel Margerrison

Finance director, The Luminar Group

Failure to comply with break clause conditions can be problematic and give rise to serious financial consequences, with tenants finding themselves left with the liability of an unwanted lease until its term expires.

In the current economic climate, many landlords are scrutinising their tenants' break notices in minute detail, to find any possible reason to reject them.

Shoosmiths' Property Litigation team has a wealth of experience acting for both tenants and landlords, guiding them through the thorny issues created by break clauses.

How we can help you

  • We will diarise key dates and prepare and serve break notices in accordance with the lease provisions.
  • We advise tenants on how best to comply with any conditions attached to break options and enter a dialogue with the landlord where appropriate. Conversely, we advise landlords on whether break conditions have been met and, where the option to break has not been validly exercised, how to enforce the tenant's covenants going forward.
  • As one of the largest Property Litigation teams in the country, we have the manpower to serve multiple break notices very quickly. This has proved invaluable to our retail client base.

The Legal 500 - The Clients Guide to Law FirmsWork highlights

  • Acting for the tenant of warehouse premises in successfully defending a challenge by its landlord. The premises had been significantly altered by the tenant, leading to an assertion by the landlord that the alterations gave rise to a 'material impediment' to their use and, as a result, a failure to give up vacant possession. We defeated this challenge, by reference to the structural nature of the alterations, and saved our client a potential future rental liability in excess of £1m.
  • Acting for an investment landlord in successfully enforcing the continuance of a lease due to the failure of the tenant to comply with its break conditions.
  • Acting for a landlord client in preparing and serving a large volume of break notices in anticipation of a multi-million pound site redevelopment.
  • Acting for the tenant of industrial premises in connection with the exercise of a break option conditional upon full compliance with all tenant's covenants in the lease. Working with building surveyors appointed by the tenant to prepare and tender a schedule of works with a view to complying with the client's repairing covenants, and thereafter negotiating with the landlord a surrender of the lease.