ABSTRACT
The break clause is enforceable by or against successors in title to the original parties whether or not they are expressly referred to in the lease. The effect of a condition to be met by the tenant before it could operate a break clause was much litigated in the 1990s. An increasingly common feature of institutional leases is the inclusion of a landlord's break option at some time during the term. The landlord must show an intention to demolish or reconstruct the premises in the holding or a substantial part, or to carry out substantial work of construction in the holding or part of it. The institutional landlord's object is to secure an income stream for as long as possible. The property valuation process historically "rewards a longer rather than a shorter term during which that income stream will be maintained.
