ANDERTON GABLES ROLES
Break Option Advice
Our client, Chortex, wished to exercise a break option within their lease. The option being very onerous as conditional on “material compliance” with the lease covenants and also upon providing “vacant possession”.
Our client was concerned about the possibility of the landlord frustrating the break to prevent the tenant leaving and thus having to remain in a building which no longer suited their requirements.
Our advice was to attempt to engage with the landlord and to explore the possibility of a cash settlement which would reduce our clients risk greatly. Also to prepare a Schedule of Works and obtain competitive quotes for these should our client be left in a position that they needed to undertake the works prior to lease end. When preparing the Schedule of Works this was done bearing in mind the long-term cost for the client should they not be successful at exercising the break. We also ensured that a comfortable cushion of time to complete the works and check them over before the lease actually ended was built into the program.
At the same time the landlord instructed his surveyor to prepare a Schedule of Dilapidations which was costed and using the competitively tendered works cost we had we were able to agree a settlement figure at a level which was 40% of the landlords desired claim figure. This enabled our landlord to exit the building without risk, at a time which suited them and without having to undertake the works.