Break clauses and the Milton Gate problem
In this Alert, we consider the important case of PW & Co v Milton Gate Investments Limited and another [2004] EWHC 1994 (Ch). This concerns the effect of determination of a head lease on sub-leases deriving from that head lease. We have found that some clients seeking to take a sub-lease have not appreciated the effects of Milton Gate (and the underlying case of Pennell v Payne to which we will also refer).