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Renewal lease - break clause? Print

Suppose an existing business lease contains a break clause. If T is entitled to a new, renewal, lease under LTA 1954, can T insist upon that new lease also containing a break clause?

In practice, much will depend upon whether the existing break clause was a rolling break throughout the lease (eg a break every three years). If that is the case, the T will be in a relatively strong position in arguing for such a provision in the new lease. On the other hand, if the break was defined by specific dates that have already expired, then T will be in some difficulty (especially if L can show that those breaks were originally inserted to accommodate some circumstances that no longer apply – for instance, a planned reorganisation by T that never took place).

May 2010
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