To Break Or Not To Break

We continue to live in interesting times with a double dip recession, austerity measures and the credit crisis. Many businesses are rethinking strategies and cutting costs which could in turn involve exercising break clauses within leases.

When a tenant serves a break notice it needs to be sure that it is prepared for its lease to come to an end as problems arise if it changes its mind during the notice period. A break notice cannot be unilaterally withdrawn and even if both parties agree to its withdrawal, case law shows that this will constitute the commencement of a new tenancy on the break date. As a consequence:

• Former tenants (in the case of an "old" lease granted before 1 January 1996) and guarantors will be released ;