BLB Solicitors
  • +01225 755656
  • info@blbsolicitors.co.uk
BLB Solicitors
  • +01225 755656
  • info@blbsolicitors.co.uk
  • Home
  • Services for You
    • Conveyancing Solicitors
    • Leasehold Property Rights
    • Property Dispute Solicitors
    • Divorce, Family Law and Mediation
    • Lifetime Planning and Wills
    • Probate and Estate Administration
    • Personal Injury Compensation
    • Medical Negligence Solicitors
  • Services for Business
    • Commercial Property
    • Commercial Property Dispute Solicitors
    • Corporate & Commercial Legal Advice for Business
    • Estate Management Solicitors
  • BLB Solicitors Locations
    • Almondsbury Solicitors
    • Bath Solicitors
    • Bristol Solicitors
    • Bradford on Avon Solicitors
    • Swindon Solicitors
    • Trowbridge Solicitors
  • About Us
    • Our Team
    • Working for BLB
    • BLB Solicitors – How we work
    • Making Payments to BLB Solicitors
    • Instructing BLB Solicitors
    • Terms of Business
    • Complaints Policy
  • Blog
  • Contact Us

Home » Can I operate the break clause in my lease during the Covid-19 pandemic?

Commercial Property
Man's hand signing document
Apr 20th, 2020

At BLB Solicitors, our goal is simple – to deliver you clear, practical legal advice and cost-effective solutions. We hope you enjoy exploring our Blog. If you can’t find what you’re looking for, please do contact us.

Can I operate the break clause in my lease during the Covid-19 pandemic?

This is currently a popular question. On the face of it the answer is simple, but get it wrong and it may prove very costly. Commercial property specialist, Caroline Entwistle, explain why.

Caroline may currently be contacted by email or by completing the contact form at the foot of this page.

Yes, but…

The short answer is yes – provided a tenant has a contractual right in the lease to determine it (called a break clause) then it can be activated now just as at any other time.

We are regularly asked to give advice on the operation of a break clause and exactly how to go about it. The advice is always broadly similar, but does vary depending on the precise terms of the clause in each lease. However, there is one constant found in almost all such clauses – an obligation on the tenant to have “paid all rents due” before the clause can be operated successfully.

The term “rents” will include all sums due under the lease, in particular the annual rent and the service charge, so it is critical that all sums are paid on time and in keeping with the requirements contained in the lease.

Emergency legislation

At the time of writing, the government has recently passed emergency legislation preventing a landlord of commercial property from taking forfeiture action against a tenant up to and including 30 June 2020. This date may be extended. The result is that many tenants have failed to pay all or some of their rent which would have been due on the quarter date of 25 March 2020.

If you are a tenant who has paid only some or none of the rent, or other sums due (such as service charge) and are looking to operate a break clause you should ensure that all sums are paid to date as soon as possible, and preferably before serving notice. Failure to have paid all your rents and comply strictly with all conditions under the break clause will render your notice to the landlord invalid, with the result that the lease will continue, together with all of the obligations it imposes.

Costly

Remember, unless the lease contains a rolling right to break, then the break clause will be a one-off and you may lose the right to break altogether if you do not comply with all of the conditions. Clearly, particularly in the current environment, that could prove costly. For that reason, we strongly advise you to take legal advice at the earliest opportunity and certainly before serving notice.

BLB Solicitors
Request a Call Back

Recent Articles

  • More exam success for BLB staff!
  • Commercial rent moratorium ends
  • What are the main causes of boundary disputes?
  • BLB Solicitors appoints two new directors
  • Covid-related commercial rent arrears: new arbitration scheme from March 2022

Newsletter Sign-up

* indicates required

Share this article

You may also like...
  • Jan 18th, 2022
    When do I need a Party Wall Agreement?
    Read Article
  • Mar 15th, 2022
    Property boundaries: key facts
    Read Article
View All Related Articles
Get in-touch today
Contact Form

Left Column

Right Column

Centre

 
Sending
  • Bristol Solicitors

    0117 905 5308
  • Bath Solicitors

    01225 462871
  • Bradford on Avon Solicitors

    01225 866541
  • Swindon Solicitors

    01793 615011
  • Trowbridge Solicitors

    01225 755656
  • Almondsbury Solicitors

    0117 905 5308
Authorised & Regulated by Solicitors Regulation Authority (No. 636644)
©2022 BLB Solicitors | Terms | Privacy | Legal