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ARTICLE · 18 DECEMBER 2015

Break Clauses – Paying Rent In Advance: No Change Given

Most commercial leases reserve an annual rent and express it to be payable in advance by equal quarterly payments on the usual quarter days.

United KingdomReal Estate and Construction

Most commercial leases reserve an annual rent and express it to be payable in advance by equal quarterly payments on the usual quarter days. The quarter days are 25th March (Lady Day), 24th June (Midsummer's Day), 29th September (Michaelmas Day) and 25th December (no prizes).

It is also a common condition of a break clause in commercial leases, which permits the tenant to serve notice during the term to bring the lease to an early end, that all rent has to be paid up to and including the break date. If this date is during a quarter does the tenant have to pay a full quarter's rent upfront on the quarter day preceding the break date or can he a pay an amount apportioned to the break date? After all, he will not be in occupation after the break date and if the landlord keeps the overpayment he will be getting a windfall.

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