Landlord’s Letter Exercising a Break Option in a Lease

Landlord’s Letter Exercising a Break Option

PROP.MAN.40
This Landlord’s Letter Exercising a Break Option should be used by a Landlord who wishes to terminate a Lease by exercising an early termination right, also known as a break option.

Not all Leases contain a landlord’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.

The Letter should be served on the Tenant 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 Tenant 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 Tenant by 31 July. It should therefore be posted well in advance of this date, e.g. on 26 July.

If the Tenant has security of tenure, the Landlord will not be able to terminate the lease simply by serving a break notice. He will also need to serve notice under section 25 of the Landlord and Tenant Act 1954 to bring the continuation tenancy to an end. For more information on security of tenure for commercial tenants, please refer to the Guidance on Excluding Security of Tenure in the Property Management folder (under Supplemental Documents). For the relevant section 25 notice please see the Section 25 Notice (Landlord Opposing New Lease).

This Landlord’s Letter Exercising a Break Option is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.

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