Break clauses
Over the last 5-10 years, break clauses have become very popular in UK leases. Across mainland Europe these have been an established part of the market for many years.
A break clause only has value to an occupier if it can be effectively instigated.
Break clauses with attached conditions are often ineffective and of no value.
It is normal that such clauses require that all payments of rent, service charge, insurance and other financial sums shall have been paid prior to the effective break date.
Both landlords and tenants need to plan carefully when leases contain break clauses in order to mitigate their costs on termination.
