Nick Knapman discusses break notices—a topic likely to get property solicitors’ hearts racing
Few tasks place a property solicitor more on edge than the preparation and service of a break notice to determine a lease. Despite Lord Hoffmann’s landmark judgment in the 1997 Mannai decision and his “reasonable recipient” test, cases continue to reach the courts on the validity of notices served Mannai Investment Co Ltd v Eagle Star Life Assurance Co Ltd [1997] AC 749, [1997] 3 All ER 352).
Preparation
For a tenant break option to be validly exercised when giving notice, the legal tenant or its agents/solicitors must give the notice. The deeds, the Land Registry, recent rent demands and Companies House must therefore be checked to ensure that the notice is given by the current lawful tenant or tenants.
In Prudential Assurance v Exel UK Limited and another [2009] EWHC 1350 (Ch), [2009] All ER (D) 122 (Sep) the relevant lease was held by two companies in the same group, one active and trading (Exel), the other dormant (Consumer).
The break notice was served on the landlord in Exel’s name,
