Break clauses – why it’s important to take the right advice early

Managing your commercial property is critical to ensure your company runs smoothly and budgets are controlled. Yet so often, businesses don’t take advice and think they can do things themselves. Property matters such as Break Clauses can be complex therefore if in doubt – seek expert advice early.

Whether you’re renting office space, industrial units or retail outlets, there is plenty to understand about your property. Depending on how well you know break clauses – they can present themselves as good or bad!

As part of the decision making process around your property, you need to consider:

  1. Is there a break clause in your lease? Sounds obvious, but many don’t know.
  2. What are the conditions attached to it? These can vary so specific detail is needed.
  3. In the future, will you need to break it?

Break clauses can be powerful in negotiating better terms for your lease. However, if you want to leave your premises early – this is when businesses can find themselves in difficulty and can be very costly.

Whether your business needs to close an office due to down-sizing, you want to grow, move to a new location, or you want to leave because the rents have increased too much – knowing what your break clause is before you enter an agreement can be to your advantage.

Why is it important to take the right advice early? – The bottom line is that once documents are signed, there is very little you are able to do if you do want to get out of your agreement early.

Some say that break clauses tend to favour the landlord, however, if done fairly and correctly – they should be there to protect both parties. For the landlord, you want to make sure your property is attractive to tenants who are looking to rent, and for tenants, you want to know that if you need to leave the property – you can.

We found an article from the solicitors Lewis Silkin that gives a sound summary of what break clauses are and particular conditions. Take a look here.

If you are about to rent a commercial property and haven’t checked your break clause – give us a call and get the right advice early. As property experts, we understand how to protect both landlord and tenant and ensure that contracts are harmonious to both parties.

Image courtesy of Corda Strappata /