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Early termination clauses in commercial property cover the right to end a lease before its fixed term, typically through a break option that can be exercised by the tenant or landlord on notice. A solicitor in this area drafts, negotiates and clarifies the terms, notice periods, conditions and any financial consequences, such as rent or service charge adjustments, that accompany an exercised break. They also review how other lease covenants interact with the break, and assist with any related registrations or formal dispositions.
This work handles the drafting and negotiation of break rights, including the precise notice period, conditions precedent, and any rent or dilapidations implications if the break is exercised. It also involves advising on how break timing affects rent reviews, repairs, and other lease covenants, and coordinating with landlords, tenants and letting agents to ensure the option operates as intended.
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