The High Court has ruled in the recent case of Capitol Park Leeds PLC v Global Radio Services Limited  that a tenant’s attempt to exercise the break in a lease, which was conditional on the tenant giving “vacant possession of the Premises” to the landlord, was not effective after the tenant had removed a Read More
Tenants cannot recover any rent paid in advance when they exercise a break clause. This was the conclusion of the Supreme Court today in the final chapter of the long running Marks and Spencer break clause case.
In May this year, the Court of Appeal overturned a High Court decision that Marks & Spencer could recover from its former landlord excess rent relating to the period between a break date in its lease and the end of the rental quarter in which it fell. M&S had been required to pay the full Read More
The Court of Appeal refused to imply a term into a lease that would enable a tenant to a refund of rent paid in advance and which related to a period after the break date. This was despite the fact that the tenant had paid a break premium equivalent to approximately one year’s rent.
Marks Read More
Canonical UK Ltd v TST Millbank LLC  EWHC 3710
Canonical was TST’s tenant under a lease. The lease contained a break option entitling Canonical to terminate the lease on six months’ notice provided the rent was paid up to and including the break date, there was no breach of covenant, and Canonical paid one Read More
Q) How does the timing of a break clause coincide with a rent review?
A: The general presumption is that time is not of the essence for working through the machinery of a rent review clause. However, as strong a presumption as that may be, it may be rebutted if there are clear indications Read More