Property Practice Wrong

Question 1

In negotiations to take a commercial lease in England, the prospective tenant asks for a 5 year lease term as the tenant knows that it will not need the premises for longer. The landlord offers a 10 year lease with a 5 year mutual break clause, saying this is just as good.

As the prospective tenant’s solicitor, what advice can you give?

Answer 1

Although the tenant can get out of the lease at 5 years, exercising a break is not straightforward, and there may be more Stamp Duty Land Tax payable on the longer term.