AST Break clause

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    AST Break clause

    I have an AST with 4 tenants, one of whom wishes to leave. I am considering an assignment rather that a new tenancy to maintain flexibility. Th original tenancy wording is "12 month term beginning on 1st April with an option to break on 1st October 2019"

    If I sign an assignment with the agreement of all parties, using a standard template such as NLA, would I be in a position to serve a section 21 notice on 1st August 2019 if I wish to regain possession?

    many thanks

    #2
    sorry, I forgot to add '2019' after 1st April

    Comment


      #3
      I wouldn't recommend an assignment and would create a new tenancy agreement and end the previous one formally.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment


        #4
        Hi thank you for this -can you expand your explanation further. Obviously a new agreement would commit me to a minimum 6 month term

        Comment


          #5
          Handling deposits is messy with assignments, as the deposit and any damage runs from the start of the original tenancy. The new partial tenant has to be make a private arrangement with the outgoing one, but is technically responsible for the damage they caused, when the overall tenancy ends.

          Comment


            #6
            Thank you for this - if I can get the incoming tenant to agree to this, given the wording described in my original post, would I be able to serve notice on 1st August 2019 ie 4 months after the tenant began and 2 months before the break clause date?
            thank you

            Comment


              #7
              Originally posted by Vikesh View Post
              Hi thank you for this -can you expand your explanation further. Obviously a new agreement would commit me to a minimum 6 month term
              Break clauses are your get out of jail card for that.

              The start point is that the tenant can't leave without your consent, they're stuck until October.

              Your break clause is a bit loose - "an option to break" doesn't actually mean anything you could rely on.
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

              Comment


                #8
                It would be a new tenancy (not a replacement) if one of the tenants is changing, so the OP is correct that there would be a minimum 6 month term.

                Comment


                  #9
                  Why would it be a minimum of 6 months?

                  There's no minimum term for an AST, it's just that notice under s21 can't be served in the first four months.
                  But break clauses aren't notices under s21.
                  If the tenant decides not to honour a break notice given by the landlord, the s21 process might be relevant as part of a repossession.
                  But we're pretty much at 4 months by October anyway.

                  If the tenancy agreement is periodic from the start, the tenant can give notice from whenever the break clause allows it (which I suspect is their issue).

                  It's more complex than it looks.
                  If the remaining tenants are staying there and paying the extra rent, just leave things as they are.
                  If they are moving someone else in, let them be a lodger until this agreement ends.
                  And then create a new agreement afterwards.
                  When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                  Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                  Comment


                    #10
                    Yes, that's really what I meant. That the OP would be committed to a minimum 6 month term if the tenant chooses not to leave even with an AST of less than 6 months.

                    Comment

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