Back
Effective 1 June, we have a new address: 34 Imperial Square, Cheltenham, Gloucestershire GL50 1QZ
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
Contact
Nick Cox LLB (Hons)
Consultant, solicitor
View profile
Nick Cox
Related services
Share this article
Resources to help

Related articles

The Charities Act 2022

Real estate

After key changes to the law were proposed in May 2021, the new act received Royal Assent on 24 February 2022, and was passed into law as the Charities Act…

Charlotte Cowdell BA (Hons), LLB
Associate, solicitor

Regulation changes to see rise in energy efficiency standards

Real estate

From 1 April 2023, the Minimum Energy Efficiency Standards (MEES) regulations are set to become even stricter for commercial properties. The regulations were introduced in 2015 to target the least…

Charlotte Cowdell BA (Hons), LLB
Associate, solicitor

Webinar: Spring commercial property law update

Litigation & dispute resolution

In this Spring update our experienced partners in commercial property and property litigation will share insight on several topics. The first is a look at development land and will include…

Willans
Solicitors
Contact us