A lease for a term of years may contain an option for one or both of the parties, to end the lease before the contractual expiry date. This is known as a break option or a break clause. The break may be exercisable:
at any time after a fixed date (a 'rolling break')
on one or more fixed dates, or
on the happening of stated events
In practice, most leases expressly state whether the break is exercisable by the landlord or the tenant, or if the right is mutual to both parties. In the case of a tenant, unless there is any indication to the contrary, the break option is exercisable by the person in whom the term is for the time being legally vested. However, if it is expressed to be personal to the original tenant it will normally lapse on the first assignment as a matter of construction of the lease.
Unlike options to purchase the reversion, or to renew, an option to break does not need to be registered in order to bind assignees of the lease or reversion.
Options are
To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.
**Trials are provided to all LexisNexis content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisNexis services please email customer service via our online form. Free trials are only available to individuals based in the UK, Ireland and selected UK overseas territories and Caribbean countries. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
Banking & Finance analysis: Stefanie Price, partner and co-head of London Real Estate, and Jack McCaw, senior associate, both at Baker McKenzie,...
HM Land Registry (HMLR) has published a blog post an updated avoidable requisitions dataset on GOV.UK. The dataset indicates a 7% reduction in...
HM Land Registry (HMLR) has updated Practice Guide 19—Notices, restrictions and protection of third-party interests. Section 2.5.3 has been amended to...
City Hall has published the Local Remediation Acceleration Plan (LRAP) for London, setting out a co-ordinated programme to accelerate the remediation...
Priority between loss reliefs in loss making companiesWhy does it matter?A company that is a member of a group and has incurred any of the types of losses available for surrender by way of group relief may, without any further rules, have more than one way in which to use the loss. There are a
Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid
Strike out—making an application to strike out a statement of caseA strike out order can be made either following an application by the parties or on the court's own initiative. This Practice Note deals with the scenario of the order being made following a party's application.Making an application
Template for regulatory references given by SMCR firms and disclosure requirements[Insert addressee details]Dear [insert name][It is our understanding that [insert name of prospective employee] [was an employee of yours between the dates of [insert dates as appropriate] OR is a current employee of
0330 161 1234