Break clauses in leases
Break clauses are commonly found in commercial leases and permit tenants to terminate their lease on an intermediate date during the term of the lease.
Unless the terms on offer from a landlord are so favourable, prospective tenants will not commit to a long – term lease. Increasingly, prospective occupiers wish to retain flexibility with regard to their occupancy of premises and break clauses provide this flexibility. Business needs change over time and so do premises requirements.
Break clauses thus help in attracting tenants whilst granting those tenants the ability to relocate or renegotiate lease terms at these break points.
Depending on the overall lease term, break clauses may operate after three, five or ten years. They usually require the tenant to provide a minimum period of notice to exercise the break and if this is done it usually triggers a process of negotiation with the landlord who will usually be keen for the tenant to remain in occupancy for a further period.
Providing notice to exercise the break clause is, therefore, often used as an opportunity to renegotiate the rent payable. New terms are often agreed which involve the granting of a rent free period.
However, if the notice to break is served on the landlord, and the landlord accepts it, then the tenant must vacate the premises by the due date.
Careful consideration must therefore be given to the question as to whether to break or not as the outcome for the party giving notice may not be the desired one.
For more information see: How to implement a break clause.
[edit] Related articles on Designing Buildings
- Assured shorthold tenancy.
- How to implement a break clause.
- Landlord.
- Lease event.
- Lease negotiations.
- Leasehold.
- Lease retention.
- Partition permanence and leases.
- Redevelopment lease renewals.
- Rent.
- Rent free period.
- Rent review..
- Sample retail unit lease.
- Security of tenure for commercial leases.
- Vacant possession.
Featured articles and news
Copyright and Artificial Intelligence
Government report and back track on copyright opt out for AI training but no clear preferred alternative as yet.
Embedding AI tools into architectural education
Beyond the render: LMU share how student led research is shaping the future of visualisation workflows.
Why document control still fails UK construction projects
A Chartered Quantity Surveyor explains what needs to change and how.
Inspiration for a new 2026 wave of Irish construction professionals.
New planning reforms and Warm Homes Bill
Take centre stage at UK Construction Week London.
A brief run down of changes intentions from April in an onwards.
Reslating an ancient water mill
A rare opportunity to record, study and repair early vernacular roofs.
CIOB Apprentice of the Year 2025/26
Construction apprentice from Lincoln Mia Owen wins this years title.
Insulation solutions with less waste for a circular economy
Rob Firman, Technical and Specification Manager, Polyfoam XPS explains.
Recycled waste plastic in construction
Hierarchy, prevention to disposal, plastic types and approaches.
UK Net Zero Carbon Buildings Standard V1 published
Free-to-access technical standard to enable robust proof of a decarbonising built environment.
Prostate Cancer Awareness Month
Why talking about prostate cancer matters in construction.
The Architectural Technology podcast: Where it's AT
Catch up for free, subscribe and share with your network.
The Association of Consultant Architects recap
A reintroduction and recap of ACA President; Patrick Inglis' Autumn update.
The Home Energy Model and its wrappers
From SAP to HEM, EPC for MEES and FHS assessment wrappers.
Future Homes Standard Essentials launched
Future Homes Hub launches new campaign to help sector prepare for the implementation of new building standards.
Building Safety recap February, 2026
Our regular run-down of key building safety related events of the month.