Back
We continue to provide our legal services through the COVID-19 pandemic. Please visit our COVID-19 Hub for legal insights, or contact us directly.
Get in Touch Menu

No apportionment of rents permitted unless the lease allows it

29 July 2014

In last autumn’s seminar on break clauses Nick Cox reported on the case of Marks & Spencer v BNP Paribas.

This case had suggested that if the lease included a break “premium” then a tenant might not have to pay rent for a full rent period if a break date fell between payment dates.

This decision has now been overturned by the Court of Appeal who have ruled that a tenant is only able to apportion rent, or to recover any overpayment of rent that results from the service of a break notice, if the lease specifically says so.

We advise that when agreeing terms at the outset, the precise date for any break to operate should, wherever possible, coincide with a payment day. However, if that is not the case then tenants should not risk failing to operate a break properly by apportioning rent payments, unless the lease allows them to do so. The obligation to pay rent in full on the payment days will be a condition precedent for almost all break notices to be effective.

We're here to help
Resources to help

Related articles

Commercial landlords & tenants: What are your options?

Commercial property

Commercial property solicitor Emma Thompson answers some key pandemic-related questions for landlords and tenants in the commercial sphere. I am a tenant, do I have to pay my rent? If…

Emma Thompson LLB (Hons)
Solicitor

Planning use classes overhaul: COVID-19 sparks major change

Commercial property

From 1 September 2020, the categories under the Town and Country Planning (Use Classes Order) 1987 are changing to create two new use classes. It is hoped that the overhaul…

Charlotte Brunsdon LLB, BA (Hons)
Solicitor

COVID-19: a commercial property update for landlords & tenants

Commercial property

As you will be aware from some of our previous updates, a number of measures have been put in place to give businesses the breathing space and tools they need…

Emma Thompson LLB (Hons)
Solicitor
Contact us