Vacant possession: tenants beware of your obligations

Developments in the law affecting commercial tenants 

Suppose you are a tenant of commercial property exercising a break option or vacating the premises and have altered the premises. In that case, it is important to beware of the recent decision in Riverside Park Ltd v NHS Property Services Ltd [2016] EWHC 1313 (Ch).

Partitioning was installed by the tenant in this case and left behind after he had exercised a break option. 

While the lease permitted the fit-out, the landlord argued that the notice to break the lease was ineffective because the partitioning left behind meant that the tenant had failed to hand back the premises with vacant possession.

Why was vacant possession not found in Riverside?

The partitioning constituted an impediment to property use. The landlord was deprived of physical enjoyment of the premises as he felt that his property was no longer an attractive proposition to future lessees. 

Action for tenants to take

Tenants need to return their property to the landlord in the condition it was given.

Vacant possession does not simply mean leaving the property empty, but can extend to ensuring no alterations that may affect the landlord’s use and enjoyment are left behind. This will prevent the finding that the tenant’s option to break was void.

Contact our commercial property solicitors today

SO Legal is headquartered in Eastbourne and has solicitors in London, Brighton, Hastings and Uckfield.