What Is It: Break Notices

An overview of what a Break Notice is and when it is used in the context of leases.

What is a break notice?

A break notice is a formal written notice used to exercise a contractual right to terminate the term of a lease early pursuant to a break clause. Not all leases include such provisions, but where they do, the clause will set out precisely how and when the right is to be exercised. The effectiveness of the break notice depends entirely on compliance with the wording of the lease.

When is a break notice needed?

A break notice is used where a landlord or tenant wishes to bring a lease to end before its contractual expiry date and the lease contains a break clause. The notice must be served within the timeframe specified in the lease, typically a set period before the break date (for example, 6 months). Even where the intention to terminate is clear, failure to serve the notice correctly and on time will mean the break clause cannot be exercised and the lease continues.