Background
- Location: Yeovil
- Sector: Manufacturing
This long-standing client of Omny Law is a Yeovil-based manufacturing business. Having previously supported the company on a number of corporate and property matters, Omny Law were pleased to be instructed again when they needed to restructure its occupation of key premises. Working closely with the client, the Omny Law team advised on the surrender of its existing lease, the grant of a new lease, and a licence for alterations – helping to ensure the arrangements supported the business’s evolving operational needs and future plans.
Challenge
What initially appeared to be a relatively straightforward property transaction soon became more complex. During negotiations, a key issue emerged: the landlord was unwilling to agree to a clean, unconditional break clause, instead insisting on conditions that extended beyond the payment of rent.
While this may have seemed like a technical point of lease drafting, the commercial implications for the client were far more significant. Conditional break clauses can be notoriously difficult to exercise successfully, creating uncertainty over whether a tenant can bring a lease to an end when needed. In practice, this can limit a business’s ability to respond to changing operational requirements and market conditions.
For the client, maintaining flexibility was a priority. As a manufacturer, the ability to adapt its property footprint in line with production demands and business growth is an important part of managing risk and controlling costs. An ineffective break right could have left the company tied to premises that no longer met its needs, exposing it to unnecessary financial and operational constraints.
Solution
Our first priority was to help the client clearly understand the commercial implications of the landlord’s proposed position. By cutting through the legal complexity, the Omny Law Commercial Property team were able to provide practical advice on the risks involved and the potential impact on the business’s future flexibility.
With a clear strategy agreed, Omny Law took a focused and commercially driven approach to the negotiations. The discussions extended over several months, with the landlord maintaining its position for much of that time. However, rather than compromise on a point that was fundamental to protecting the client’s long-term interests, the Omny Law team remained firm and continued to advocate for our client.
Ultimately, the landlord conceded, allowing the deal to complete on terms that preserved the client’s ability to protect future operational and commercial needs.
Results
Omny Law supported the client by securing a genuinely workable break right, meaning the client retained the flexibility to adapt its property arrangements as its business needs evolve. This delivered a significantly stronger outcome than the position originally proposed by the landlord, reducing future operational risk and providing greater certainty for the business.
The successful outcome also reinforced a trusted relationship that has developed over a number of years. Since completing this matter, Omny Law has been instructed to act on a further lease of the adjoining unit, reflecting the confidence it places in our advice and our understanding of its commercial objectives.
“It was a pleasure to work with the team again, having assisted on corporate transactions and the purchase of a property in the past. They are a pleasure to work with.”
