A break clause gives a tenant a contractual mechanism to end the lease early by serving notice and complying with any conditions specified in the lease.<\/p>\n<\/div>\n\n\n\n
Who Can Use a Break Clause Under the Lease?<\/h2>\n\n\n\n
A break clause<\/a> gives you the right to end your lease and will usually specify who may use that right. <\/p>\n\n\n\n In the absence of any clause to the contrary, the law usually allows the original party to the lease and the successors (e.g. a new tenant to whom the lease is assigned) to exercise the break right. Although this is the default position, leases can contain express drafting that alters or overrides it. <\/p>\n\n\n\n For example, a lease may state that the break right is personal to the original landlord or tenant and may be used only while that party holds the lease.<\/p>\n<\/div>\n\n\n\n Tenants should therefore approach personal break clause rights with caution. While such rights may appear attractive at the outset, they can lose their value if the tenant later needs to transfer the lease. This is particularly relevant where a tenant anticipates the possibility of assigning their lease in the future. <\/p>\n\n\n\n “Tenants negotiate hard on the break date and then never check who the clause actually names. A break right that only the original tenant can use quietly caps what the lease is worth to a buyer or a group company later on. Where flexibility matters, fix the wording at the point you take the lease, because the landlord has far less reason to help you once you need to assign.”<\/p>\n <\/blockquote>\n \n
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