It’s in the interests of landlords and tenants to work together
0 Comments | Daily Post; Liverpool (UK), Jul 21, 2010 | by Janice Weatherly
BREAK options have had a relatively short life in the context of commercial property.
Resisted by landlords, desired by tenants and contested by lawyers interpreting what constitutes effective deter mination.
The current economic downturn and moreover the speed of decline has brought a different, commercial focus on break clauses and their value in the present market.
With the rate of decline in UK commercial property values slowing noticeably from the freefall of 2008, many property investors with an eye on their funding facilities and loan-to-value (LTV) covenants are conducting revaluations with growing frequency.
For the independent valuer, break options represent a landmark where the proverbial income stream cascades over the edge of the waterfall, leaving values to plummet.
‘Break Coupled with record void occupancy levels, low occupier confidence and declining rental values, the valuer faced with a break option could be forgiven for assuming the worst
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