A tenant wishing to vacate premises by terminating its lease should read the break clauses in the lease carefully and comply fully with them: failing to do so can prove to be an expensive mistake.
A recent case dealt with a dispute over a notice to terminate a lease. The Royal Bank of Scotland (RBS) was the owner of a property let to another company. The property was managed for RBS by Schroder Property Investment Management Ltd. (SPIM), the property management arm of the Schroder Investment Group.
The lease provided that if the tenant wished to terminate the lease, the landlord had to be given nine months’ notice. Under the break clause, notice to terminate the lease had to be given by 3 October 2009. The lease also stated that the notice had to be served on SPIM. The notice to break the lease was duly served on RBS in September 2009, but the notice to SPIM was not served until December 2009.
The High Court held that time was of the essence in the service of both of the notices and SPIM’s notice also had to be served by 3 October 2009.
The notice to break the lease was therefore ineffective.
Click here for guidance for tenants on terminating leases.
Click here for advice for landlords with a tenant who may be planning to terminate a lease.
Second Notice Served Late Means Lease Not Ended
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.
We offer a premium, best-in-class service to everyone we work with
We’ll make you feel strongly supported, fully informed and completely in control
We’ll provide you with legal advice that’s prompt, incisive and clearly communicated.
We can provide advice right across the lifecycle of your business or organisation.
Placing you and your outcome at the centre of everything we do.
We don’t just respond to your questions, we anticipate them.
