Break clauses allowing early termination of fixed term leases by tenants are of particular interest to charities. They permit strategic planning and are particularly useful where the charity relies on revenue funding. Additionally they avoid the legal cost (including Charities Act valuations) associated with transfer or under-letting their leasehold properties. The courts have always made it quite clear that in order to effectively serve a notice, even though some errors may be tolerated, the effect of the notice must be obvious and any express conditions contained in the lease relating to service must be complied with.

Recent cases illustrate the importance in taking great care when exercising break rights

Leases break clauses - part 1 - feb 2014-v2.pdf