Commercial premises – option to break successfully effected – major works carried out post termination – tenant’s service charge liability

Friends Life Management Services Ltd v A&A Express Building Ltd [2014] EWHC 1463 (Ch) (Morgan J) (9 May 2014)

In this case an option to break a lease was successfully operated. The lease provided for the payment of a service charge. The landlord was permitted to include sums each year so as to build up a reserve fund to pay for major works to be carried out at a future date. Major works were carried out post termination. The issue before the court was the amount of service charges payable on termination.