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ARTICLE · 13 MAY 2020

Breaking Up: Current Issues Surrounding Lease Break Clauses

Will landlords be able to keep tenants on the hook and will leases continue even when tenants try to exercise a break right? In the current state of COVID-19 ...

United KingdomReal Estate and Construction

Will landlords be able to keep tenants on the hook and will leases continue even when tenants try to exercise a break right? In the current state of COVID-19 lockdown it could be more difficult for tenants to effectively break the term of a lease. Can a break right be validly exercised when a tenant cannot access the property to remove its goods and carry out any works necessary to reinstate the space by the break date?

Some break clauses will allow a tenant to walk away as long as they have paid all rents due up to the date of the break. This is within the tenant's control, if it has the funds to pay, so those breaks will remain effective.

Some break clauses expressly provide that they will only operate if the tenant gives up occupation and terminates any underleases they may have granted. Giving up occupation may at first suggest that it is only people who need to have vacated the property, but it's not quite that simple and the wording of the clause still needs

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