Continuing uncertainty in the business climate results in most occupiers needing maximum flexibility to grow or reduce floorspace, to share their property with other parties, and to exit once a property becomes surplus to requirements.
Securing best achievable terms for rights to break, share, sublet and assign are important issues for negotiation in the course of every acquisition, forming a key part of the Heads of Terms. Unlike many property consultants, at Turner Morum we are used to continuing our role beyond that stage, assisting the client’s lawyers as they deal with the specific alienation and termination clauses under the draft lease.
Where a tenant is minded to exercise a break option during the lease term it is vital to plan well ahead, so that timing and conditions of the break notice can be strictly followed to ensure validity of the notice. Seemingly innocent requirements such as to give ‘vacant possession’ on the break date can be a trap in terms of the strict legal meaning.
When approached well in advance a forthcoming break option can offer the occupier a great opportunity to reconsider the property requirements of the business, and explore any prospect of concessions from the landlord in return for not terminating the tenancy.
Turner Morum specialises in advising occupiers on break options and lease exit issues. We can provide detailed financial analyses to compare the costs of breaking the lease on an existing property with relocating elsewhere, bringing together the recurring outgoings of rent rates and service charges with the one off costs of fitting out and dilapidations.
For further information please contact Andrew Smith or Tony Lockwood.
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- Watling Street, London EC4
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- Admiralty Way, Camberley, Surrey
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- Hays Galleria, London SE1
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- Hargrave House, Maidenhead
