A break clause is a provision in a lease that allows either the landlord or the tenant to terminate the lease before the end of the fixed term. Break clauses are typically included in long-term leases as a means of providing flexibility for the parties involved.
The terms of a break clause will be set out in the lease agreement and will typically specify the notice period that must be given by the party wishing to terminate the lease, as well as any conditions that must be met in order for the break clause to be effective. For example, the break clause may require that the tenant has been in occupation of the property for a certain period of time before they are able to exercise the clause, or it may require that the tenant has paid all outstanding rent and other charges.
Break clauses can be useful in circumstances where the parties to the lease need to terminate the arrangement earlier than planned, for example if the tenant needs to move out of the property due to a change in their circumstances or if the landlord needs to sell the property.
