Posted: Friday, 25 July 2008 @ 16:40
The rolling break is a tool that is seldom used but it can be beneficial to both landlords and tenants.
A standard break clause gives you one shot at ending your lease. You have to serve notice in the right way and at the right time and sometimes have to satisfy other conditions for the break to be effective. If you fail to exercise the break correctly you may be stuck in a lease you don't want for years to come.
The rolling break overcomes these problems by allowing you to terminate the lease at any time having given the requisite notice. If the other party challenges the validity of your notice then you can just serve another one.
A rolling break is often thought to favour tenants more than landlords as it is usually the tenant who requires the flexibility to terminate the lease at any time but landlords who have redevelopment plans for their premises can also take advantage of the rolling break to obtain vacant possession of premises once they are ready to redevelop.
For more advice on rolling break clauses contact commercial property lawyer, Steve Petty, on 01926 629005.
Steve Petty, Commercial Property Lawyer
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