Broken Covenants - How To Ensure A Break Is Valid

A lease will almost always stipulate the condition in which the demised property should be yielded up. However, even if it does not contain an express yield–up provision, a term will be implied that the tenant will deliver the premises back to the landlord. Thus, the tenant should vacate (save for the performance of reinstatement works) and remove its chattels. This is all the more important when it forms the subject of an express break condition.

In Ibrend Estates BV v NYK Logistics (UK) Ltd [2011] EWCA Civ 683; [2011] 36 EG 94, the Court decided that a tenant had failed to give vacant possession in accordance with the break clause in its lease because workmen that it had employed remained in the property following the break date to finish off outstanding repairs.