Tenant’s Letter Exercising a Break Option

This Tenant’s Letter Exercising a Break Option should be used by a Tenant who wishes to terminate its Lease by exercising an early termination right, also known as a break option.

Not all Leases contain a tenant’s break option. You should check the Lease carefully to verify that a break option is included. The terms of the break option must be observed, e.g. by giving the correct amount of notice and complying with any conditions. Typical conditions include paying rent up to date and remedying any breaches of covenant. It will also be necessary to give “vacant possession” of the premises on the termination date. In essence this means removing all occupiers and possessions.

The Letter should be served on the Landlord by the method (or one of the methods) specified in the Lease. There is often a “Notices” clause in a Lease, which will stipulate where and how notices should be served. Subject to what the Lease says, delivery by hand or by recorded delivery will probably be safest.

Remember that the notice period begins from the time the Landlord receives the Letter, not when the Letter was posted. Do not leave it until the last minute to post the Letter. For example, if the Lease can be terminated on 31 January by giving 6 months’ notice, the Letter must reach the Landlord by 31 July. It should therefore be posted well in advance of this date, e.g. on 26 July.

The Letter asks the Landlord to acknowledge receipt of the letter by signing a duplicate and returning it to the Tenant. A stamped addressed envelope can be enclosed. It is not essential for the Landlord to acknowledge receipt of the Letter, but it is helpful for the Tenant to know that the Letter has been received.

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