Second break clause in lease

[andyk1405]

Hi there, hopefully this is in the right place, apologies if it's a stupid question

We run several businesses, mostly market stalls and catering businesses but we recently took on a small bar, it's been a struggle as you can imagine and January pretty much killed us off it was that bad, we have a one year break clause coming up in a few months and I'm deciding whether or not it's time to get out. I don't have much experience with commercial leases and I don't want to get the solicitor involved again unless I have to

Anyway we then had a really good February where it feels like some of the hard work is steering to pay off, obviously I'm cautious about reading too much in to this

My question is, before I go ask the landlord, is it possible to.add another break clause after the second year. I imagine if we pull out the landlord will be sat with the building empty for at least 6 months to a year like it was when we left, so could be mutually beneficial for both parties, we get another year to decide if it's working long term and he's not looking for a new tenant straight away

Thoughts? Thanks

 

[Paul Kelly ICHYB]

With agreement, you can do anything.

If they accept, I would think that they will get you to pay the legal fees for amending the lease.

 

[Lisa Thomas]

That will be up to the landlord.

 

[Frank the Insurance guy]

There is no harm in asking them - they can say No, but they might agree!

 

[WaveJumper]

Well the first thing to check is when is the actual break clause due and what does the lease say about serving notice ie could be one month, could be more it will also probably state in which form notice should be officially given. So make sure you are not going to miss a deadline.

If you are unsure if its worth continuing as other have said you need to have (bearing in mind lease time frame) a meeting ASAP with landlord if they feel they have no other interest in the unit they may well agree to a rolling one month lease. As you say this means the landlord is not leaving unit empty possibly making it easier for them to attract a new tenant, plus a little income also coming in. You might even get away with negotiating current rent down especially if they think you might walk.

So check lease for time frame, and get talking to landlord

 

[Michael Loveridge]

As has been said, it’s essential that you check the exact terms of the break clause. There will be a specified notice period, usually three months on a short lease or six months on a long lease, and there are also often strict requirements regarding service of the notice.

If you fail to comply with these requirements to the letter the break notice will almost certainly be ineffective, so that you are stuck with the remainder of the lease.

As has also been said, you and the landlord are free to agree whatever you want, and it’s possible that they might agree to a second break clause. This wouldn’t need a new lease as such – you could deal with it by way of a deed of variation.

 

[FreddyG]

Please note (just in case you or anyone reading this is located in Scotland) that property law, particularly commercial property law, is different in Scotland.