Breaking Bad — Court of Appeal’s decision makes life harder for tenants

By Richard Willcox

In Siemens Hearing Instruments Ltd v Friends Life Ltd, the Court of Appeal has overturned an earlier decision and ruled that the formal requirements of a break clause must be followed precisely in order to determine a lease.

In 1999, Friends Life (the landlord) granted a 25-year lease of commercial premises to Siemens (the tenant). The tenant had the benefit of a break option, the relevant part of which stated:

‘Subject to the pre-conditions being satisfied on the termination date, the tenant may determine the term on the termination date by giving the landlord not more than 12 months’ and not less than six months’ written notice, which notice must be expressed to be given under section 24(2) of the Landlord and Tenant Act 1954.’ …

Click on the link below to read the rest of the Shoosmiths briefing.

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