Break clauses: the small print that decides your next move
Many tenants discover too late that their break right comes with conditions they cannot meet. What to look for and when to diarise it.
A break clause looks like flexibility. In practice it is often a set of conditions that must be met exactly, on a specific date, or the right is lost.
Common conditions
- Full payment of rent and other sums due.
- Vacant possession on the break date.
- Material compliance with repair obligations.
Negotiate them early
The time to soften these conditions is at heads of terms, not a month before the break date. Ask for conditions limited to payment of the main rent.
Diarise everything
Notice periods, service requirements and the break date itself all belong in a calendar that more than one person can see.
Keep reading
