Q&As

Where a tenant’s break right is subject to a precondition that the tenant must have paid ‘all monies due’ under the lease, is the break effective notwithstanding that on the break date there are dilapidations for which the tenant may be liable to the landlord in damages?

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Published on LexisPSL on 25/04/2019

The following Property Disputes Q&A provides comprehensive and up to date legal information covering:

  • Where a tenant’s break right is subject to a precondition that the tenant must have paid ‘all monies due’ under the lease, is the break effective notwithstanding that on the break date there are dilapidations for which the tenant may be liable to the landlord in damages?

Where a tenant’s break right is subject to a precondition that the tenant must have paid ‘all monies due’ under the lease, is the break effective notwithstanding that on the break date there are dilapidations for which the tenant may be liable to the landlord in damages?

A tenant's right to break is often conditional on compliance with covenants. If conditions are not fulfilled, the break clause may not operate and the lease could then continue for the remainder of the term or at least until the next break date. If the break is conditional on payment of money (as in a requirement to have paid ‘all monies due’), it is essential that the tenant identifies all the provisions in the lease which require the payment of money on or before the break date and ensures that any money due is paid in full.

Consequently, before exercising a break clause, a tenant should make sure that there are no other payments, for example, an insurance

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