Break Options and Clauses Within Commercial Lease Tenancies

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Category: Leases & Titles

Break options and clauses are a popular addition to leases of commercial properties; a handy addition to any lease agreement or contract in real estate that is beneficial for a landlord and tenant.

In the main, you see them most in regular lease agreements of commercial and business premises with a break option in there. However, they can still be within residential longer leases and shorter-term agreements.

What is a Break Option Clause?

When looking at what a break option clause means - they allow one party to terminate the lease agreement before the end of the natural term.

So, the lease may be five years long, however, a landlord or tenant may have the option to end or break the lease after say the third year.

But in terms of what...

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Lease “Re-gears” and "Re-Gearing" Explained and Expounded

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Category: Leases & Titles

You may come across the phase lease “re-gears” or “re-gearing”, particularly with commercial property leases, and wonder what on earth this is describing.

Just what is a lease regear, and what does it mean?

In short, a re-negotiation of the lease so that there’s a benefit for both the landlord and tenant.

Often this means that it extends longer to have a reduced rental level now. Therefore, you tend to define a lease regear by what the two parties want out of the property interest – the landlord, and tenant.

So, one will trade-off one factor of the lease, to benefit another; and the other vice versa, on hopefully a mutually beneficial basis.

It’s not that either party has to do any of this. After all the current lease is a set...

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Lease Renewals for Commercial Business Premises, and Landlord & Tenant Act 1954

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Category: Leases & Titles

In terms of what is a lease renewal at a commercial property, then it agrees to a whole new lease for a tenant to continue occupying a property for their business.

It sounds simple, and it is – a new lease.

What can confuse this is talk of maybe an extended or ‘holding over’ lease, or even ‘re-gearing’ a new one.

These are more about changing or stretching out the current business lease, whereas a lease renewal is a brand-new lease into the future.

 CLICK HERE to immediately download a Fact Sheet outlining the top 5 factors to secure any commercial property lease renewal successfully.

Here is a video of five key factors to appreciate these lease renewals:

 The ‘1954 Act’ Protection

The key to understanding how you...

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