Operational Notification: Lease Termination, Extension & Break-Clause Management

1. Section 1: Property Lease & Subtenant Metadata

This section captures all identifying information about the property, lease agreement, and subtenant arrangements to establish a complete audit trail for the proposed lease action.


Unique Lease Reference Number

Property Full Address

Building Name

Lease Party Details & Spatial Configuration

Landlord Legal Entity Name

Landlord Primary Contact

Tenant Legal Entity Name

Total Leased Area

Unit of Measurement

Floor/Suite Number

ABC Property Holdings Ltd
John Smith (john.smith@abcholdings.com)
XYZ Corporation Subsidiary A
15000
Square Feet
15th Floor
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Lease Commencement Date

Original Lease Expiry Date


Original Lease Term (Years)

Current Annual Base Rent


Security Deposit Held by Landlord

Are there rent review provisions in this lease?


Does this lease involve subtenant(s) or occupancy by third parties?


Upload executed lease agreement and all amendments

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Upload property floor plan marked with leased premises

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2. Section 2: Lease Break-Clause or Option Rationale

This section documents the strategic and operational rationale for the proposed lease action, including specific clause references and comprehensive business justification.


Proposed Lease Action Type

Specific Lease Clause Reference (e.g., Clause 12.3)

Contractual Break-Clause Exercise Deadline Date

Intended Lease Termination/Expiry Date

Are there conditions precedent to exercising this break option?


Comprehensive Business Rationale for Lease Action

Strategic & Financial Impact Assessment

Strongly Negative Impact

Negative Impact

Neutral

Positive Impact

Strongly Positive Impact

Alignment with corporate real estate portfolio strategy

Financial impact on P&L (cost reduction/increase)

Employee experience and commute impact

Business continuity risk during transition

Alternative workplace solutions availability

Has a formal alternatives analysis been conducted?


Primary Strategic Driver for this Lease Action

Estimated Total Cost of Lease Action (including dilapidations, fees, relocation)

Estimated Annual Savings or (Cost Increase) Post-Action

3. Section 3: Dilapidations & Facilities Restoration Estimate

This section captures the condition assessment, reinstatement obligations, and comprehensive cost estimates for returning the premises to the landlord in compliance with lease covenants.


Has a professional dilapidations survey been commissioned?


Premises Condition Assessment by Category

Overall state of repair and decoration

Mechanical & HVAC systems condition

Electrical and data cabling infrastructure

Flooring, ceilings, and partitions

External facade and windows

Kitchen and sanitary facilities

Fire safety and security systems

Compliance with current building codes

Detailed Dilapidations & Reinstatement Cost Estimate

Work Item Description

Category (e.g., MEP, Finishes, Structure)

Low Estimate

Medium Estimate

High Estimate

Contingency %

Medium + Contingency

Remove all tenant partitions and restore to open plan
Finishes
$15,000.00
$25,000.00
$40,000.00
15
$28,750.00
Reinstate original ceiling grid and lighting
MEP
$8,000.00
$12,000.00
$18,000.00
10
$13,200.00
Restore flooring to base building standard
Finishes
$10,000.00
$15,000.00
$22,000.00
15
$17,250.00
Remove data cabling and make-good
MEP
$5,000.00
$8,000.00
$12,000.00
20
$9,600.00
 
 
 
 
 
 
$0.00
 
 
 
 
 
 
$0.00
 
 
 
 
 
 
$0.00
 
 
 
 
 
 
$0.00
 
 
 
 
 
 
$0.00
 
 
 
 
 
 
$0.00

Select all building systems requiring full restoration or replacement

Are there any tenant improvements that the landlord may wish to retain (surrender value negotiation)?

Summary of Key Dilapidations Risks and Mitigation Approach

Upload dilapidations survey report (if available)

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Upload photographic evidence of premises condition

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Has legal advice been obtained on reinstatement obligations interpretation?


4. Section 4: Landlord Notice Deadlines & Legal Obligations Checklist

This section ensures compliance with all contractual notice requirements, statutory obligations, and legal formalities to validate the lease action and mitigate legal risk.


Critical Notice Timeline & Compliance Tracker

Notice Type

Contractual Notice Deadline

Actual Notice Served Date

Landlord Acknowledgment Received

Compliant with Lease Requirements?

Comments/Deviation Explanation

Break-Clause Exercise Notice
6/30/2025
5/15/2025
5/20/2025
Yes
Served 45 days early via registered courier
Dilapidations Response Notice
8/31/2025
 
 
 
Awaiting landlord's schedule of dilaps
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Is there any existing dispute or potential litigation with the landlord?


Which dispute resolution mechanism applies if disagreements arise?

Does this lease action trigger cross-border tax implications (e.g., permanent establishment, VAT/GST)?


Professional Fees & Transaction Costs Estimate

Fee Category

Estimated Cost

Service Provider

Invoice Due Date

Legal Fees - Lease Surrender
$15,000.00
Global Law Firm LLP
9/30/2025
Dilapidations Surveyor
$8,000.00
Property Consultants Inc
7/15/2025
Project Management - Make Good
$12,000.00
CRE Project Services
10/31/2025
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Summary of Legal Risk Assessment and Mitigation Plan

Upload copies of all notices served and landlord correspondence

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Upload legal opinion on lease action validity

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5. Section 5: Head of Corporate Real Estate & Chief Financial Officer Approval

This section establishes the formal approval workflow, risk sign-off, and executive accountability for the lease action decision and its financial implications.


Form Prepared By (Name & Title)

Form Preparation Date & Time

Business Unit/Division Responsible for Lease

Has this lease action been reviewed and endorsed by Regional Real Estate Lead?


Is budget available to cover all associated costs (dilapidations, fees, relocation)?


Overall Risk Assessment Rating for this Lease Action

Key Risks Identified and Mitigation Strategies

Does this lease action require Board of Directors notification or approval?

Are there any related party considerations (e.g., landlord is corporate affiliate)?


Post-Approval Implementation Timeline & Milestones

Milestone Activity

Target Completion Date

Responsible Party

Critical Path Item?

Success Criteria

Serve formal break notice to landlord
6/30/2025
Legal Department
Yes
Acknowledged receipt by landlord
Complete dilapidations works
10/31/2025
Facilities Management
Yes
Landlord sign-off on works
Employee relocation to new premises
9/15/2025
HR & CRE
Yes
Zero business disruption
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Will this action trigger any employee consultation or union negotiations?


Head of Corporate Real Estate Approval - Electronic Signature

Head of CRE Approval Date & Time

Chief Financial Officer Approval - Electronic Signature

CFO Approval Date & Time

CFO Comments & Conditions (if any)

Post-action monitoring and reporting required?


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