Understanding Break Clauses in Commercial Leases

Break clauses can offer flexibility in commercial leases—but they also come with strict requirements and potential risks. In this episode of Business Law and More, Reena Popat speaks with commercial property solicitor Gaurav Anarkat to explain how break clauses work, when they can be exercised, and what conditions must be met.

From fixed-date to rolling break clauses, they outline the differences between tenant, landlord, and mutual options, and discuss the impact these clauses can have on business planning, funding, and lease security. This episode provides valuable guidance for anyone entering into or managing a commercial lease.

Please note that the content shared in this podcast is for general informational purposes only and does not constitute legal advice. The law is constantly evolving, and the specifics of each case vary. Therefore, listeners should seek independent legal advice before acting on any information presented in this podcast. Carter Bond Limited trading as Carter Bond Solicitors accepts no liability for any actions taken based on the content of this podcast.

The views and opinions expressed in this podcast are those of the speakers and do not necessarily reflect the views or positions of Carter Bond Limited trading as Carter Bond Solicitors. Information provided in this podcast is for informational purposes only and should not be considered a substitute for advice.

Thank you for listening to "Carter Bond Solicitors | Business, Law and More." For personalised legal advice, please speak to a qualified legal professional.

Chapters

• 0:00 Introduction
• 1:01 What Is a Break Clause?
• 2:24 Fixed Break Clauses & Notice Periods
• 3:10 Conditions for Exercising a Break Clause
• 6:43 What Happens If You Miss a Break Date?
• 8:00 Rolling Break Clauses Explained
• 9:37 Material Breach & Refusal to Accept Break
• 13:30 Break Clauses and Lender Considerations
• 15:47 Practical Advice for Tenants and Landlords