By Martin McKeague
In times of economic decline or uncertainty, many businesses look to divest themselves of surplus property to reduce rental commitment. With Brexit looming and the state of the high street the focus of some concern, Walker Morris’ specialist Real Estate Litigation Partner Martin McKeague reviews recent case law and provides practical advice for businesses considering their lease break options.
Context and key case law
Whilst the cost savings involved in a rationalisation exercise can be significant, so too can the risks. Once the decision has been made to bring a commercial lease to an end, the failure to serve a valid break notice can have drastic consequences. The business may lose the opportunity to break the lease and may therefore remain liable and tied into the property with long-term, unwanted commitments.