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Problems with a break clause

One of our commercial property solicitors, Ian Riley, explains a problem relating to exercising a break clause in a commercial lease which arose in a recent court case.

It is usual for a break clause in a lease to be conditional on the tenant giving the commercial premises back to the landlord with “vacant possession”. In this case the tenant had a schedule of repairs to carry out and because they tried to get the repairs done before giving the commercial property back (to save costs on dilapidations) they actually breached the condition in the break clause. The tenant had to pay full rent until the next break date.

Do you have a commercial lease with a break clause? Is the break clause conditional? Can you afford to continue to pay rent if you miss the opportunity to break? Give our Ian Riley a call on 01332 224987 to discuss your situation and obtain a no obligation quote. A few hundred pounds of advice could save you thousands of pounds in the long run.

Is a “standard tenancy agreement” sufficient?

A standard residential Assured Shorthold Tenancy could produce very undesirable results, whether you are the landlord or the tenant.

In a recent case the courts decided that the wording of a repairing obligation in a standard agreement meant that “structure” was much wider than the parties expected. As a result, the landlord had to pay a lot more for repairs. In addition, the drafting meant that the tenant could be obliged to carry out repairs to elements of the building to which it has no access and no control. This would result in the tenant breaching the tenancy agreement.

Signing a “standard tenancy agreement” for either a residential property or a commercial property without advice from a solicitor could result in large repair costs, unfair or unworkable terms, or an expensive argument over the document wording. Our fixed fees for residential tenancy agreements start from £150 plus VAT. Contact Ian Riley on 01332 224987 for more information on tenancies.