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Break Clauses

Tenant and /or Landlord or mutual break clauses are very common but how effective are they? Is that break clause conditional?   Is it worth anything?

Exercising a break clause is not simply serving the  correct notice on  the correct person at the correct address . Quite often a break clause  is conditional and you need to know what the conditions are to make sure you can comply with and exercise a break clause or  indeed prevent the exercise of a break clause!

Even the most obvious conditions may prove an obstacle. There is case law where a tenant lost theability to terminate a lease simply because the tenant had failed to pay a small amount of interest, another where a tenant had only painted premises with two coats of paint instead of three.

Whether or not a break clause can be or is validly  exercised can cost a landlord or a tenant a considerable amount of money. We consider it essential that any tenant or landlord is properly advised on the pre-requisites of any break clause - it simply is not worth the risk of getting it wrong!


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