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Break clauses in commercial leases

Posted by Lotty Reeves on 4th July 2014

Landlords will breathe a sigh of relief following a recent Court of Appeal judgment.

In this case, the tenant had exercised a break clause, ending the lease early. It sought a refund of parts of payments it had made in advance for rent, service charge, car parking and insurance charges, which related to a period after the break date.

The court ruled that it was not appropriate to imply a term into a lease that entitled the tenant to a refund of the rent, car parking fee and insurance charges that it had paid in advance in accordance with the express terms of the lease.


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