Application for ifrs 16 for the following contract

A lessee has leased a warehouse for a contract period of 5 years, the monthly rent being 5000 us dollars . There is no leasehold improvements , just a plain warehouse that is leased.

The contract is for 5 years , however after a period of two years , the lessee has the right to terminate the lease by giving a 3 months notice period.

If the lessee terminates the lease prior than two years , they will incur a penalty of 12 months of rent.

In this case what is the non cancellable period ?
I do know that it is two years , but the penalty incurred will only be for 12 months of rent.

And my main question is it necessary to apply lease accounting ? , as the penalty will only be for 12 months , if terminated before 2 years.