Powered by Lexis+®
Jurisdiction(s):
United Kingdom

Pro-tenant playbook: negotiating tenant break clauses in commercial leases of part, with preferred and fallback drafting, compliance conditions, and rent and service charge reimbursement guidance (UK)

Practice notes
imgtext

Introduction

This playbook sets out guidance on negotiating the terms of a tenant’s break right (also called a tenant’s break clause or option to break/determine) where the lease covers part of a larger building, for example an office block or a shopping centre (or a comparable retail setting), with the aim of making the terms more favourable for a tenant (‘tenant‑friendly’ or ‘pro‑tenant’). It contains preferred provisions, fallback wording, and drafting commentary that are designed to favour the prospective tenant. The playbook is intended for lawyers representing prospective tenants and in‑house counsel, who should adapt it as required to address client‑specific matters and to ensure that client’s interests are fully protected. The degree of risk referenced in the playbook may differ according to the client. Note that it does not provide drafting for situations where the tenant has a significant bargaining advantage (eg where the tenant is an anchor tenant). This document forms part of a suite of pro‑tenant playbooks. For details of the other playbooks in the suite, together with a list of other content related to commercial tenancies, refer to the Commercial tenancies subtopic...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.
Web page updated on 21/05/2026

Popular documents

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Read More Right Arrow

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Read More Right Arrow

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Read More Right Arrow

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...

Read More Right Arrow