Break notices - call my bluff!
In the current economic climate, some tenants have been using break notices as a technical ploy to try to get their landlords to negotiate a lower rent and/or service charge contribution. This could be a risky strategy because a break notice cannot be withdrawn unilaterally once it has been served and the tenant could find itself without premises.
Most break clauses require the tenant to give notice to the landlord a set number of months in advance. During this time, the landlord could find someone else to rent the property to and may not wish to enter into any negotiations with the tenant for a new lease. This puts the tenant in the position of needing to find alternative premises or trying to allege that the lease has not been terminated.
A tenant who has a change of heart, and decides it wishes to stay, is unlikely to succeed in persuading a court that the break notice it has served is invalid. Furthermore, any attempt by a tenant to purposely breach any condition that it must comply with to break the lease, for example payment of rent, will not find favour with the court. In any event, the landlord is able to waive the requirement for the tenant to comply with any or all of the break clause conditions.
If the tenant remains in occupation after the lease has ended, the landlord is able to treat the tenant as a trespasser and can claim from the tenant a sum equal to twice the rent payable under the lease until the tenant vacates.
If a tenant is hoping to re-negotiate the lease terms, it might be better to threaten to exercise its break option rather than risk its bluff being called!
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This article contains information of general interest about current legal issues. It does not give legal advice and specific advice should always be sought about your particular circumstances. We will be happy to assist.