AST: one year let, but break clause after six months

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  • AST: one year let, but break clause after six months

    Is this a usual clause? I thought the 12 month term set out in a tenancy agreement was binding? This sounds to me as though the tenant could leave after 6 months!

    'During the Term this Agreement may be terminated by the Tenant upon serving two calendar months’ notice in writing not to be served before 30th of December 2008.' (ie 6 months into the tenancy)

  • #2
    Many 12 month agreements have a break clause such as what you have described below. It can be rather confusing for tenants who think they have entered into a 12 month agreement and that they won't have to leave (presuming they've not broken any terms of the tenancy) for 12 months.

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    • #3
      Originally posted by housed View Post
      Many 12 month agreements have a break clause such as what you have described below. It can be rather confusing for tenants who think they have entered into a 12 month agreement and that they won't have to leave (presuming they've not broken any terms of the tenancy) for 12 months.
      But this is a tenant-only break clause. T won't have to leave during the twelve months, unless T serves the Notice after 30 December.
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).

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      • #4
        Sorry for the confusion! I am the landlord. I am letting to a tenant whose employer has a tenancy agreement they want me to use. I'm not happy about a clause which would allow the tenant to leave after 6 months, can I just ask them to remove the clause?

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        • #5
          Originally posted by Thyrsis View Post
          Sorry for the confusion! I am the landlord. I am letting to a tenant whose employer has a tenancy agreement they want me to use. I'm not happy about a clause which would allow the tenant to leave after 6 months, can I just ask them to remove the clause?
          Yes. You are L; you draw the Agreement; you call the shots. Why not tell them that they must use your AST Agreement?
          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
          4. *- Contact info: click on my name (blue-highlight link).

          Comment


          • #6
            The clause indicates that the tenant can leave after six months if he wishes, but the landlord cannot remove him underthe section 21 route for 12 months. I would certainly be inclined to delete the clause and grant an AST for a period of 6 months only. After that, you can either renew the lease or let the old one continue on a statutory periodic basis. Make sure the lease is with the tenant, not the company as AST's cannot be used with company lets.

            P.P.
            Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

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            • #7
              Originally posted by P.Pilcher View Post
              Make sure the lease is with the tenant, not the company as AST's cannot be used with company lets.
              P.P.
              I'm even more confused now as I've found, when asking a different question, that the rent is too high for an AST.
              What sort of tenancy agreement do I need?
              (as you might have guessed this is my first time!)

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              • #8
                Originally posted by Thyrsis View Post
                I'm even more confused now as I've found, when asking a different question, that the rent is too high for an AST.
                What sort of tenancy agreement do I need?
                (as you might have guessed this is my first time!)
                Use same format as AST, if you like. It cannot be an AST, by operation of law.
                Simply delete any clause referring to s.21 and the fact that the Agreement creates an AST.
                JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                4. *- Contact info: click on my name (blue-highlight link).

                Comment


                • #9
                  hrm yup was an odd one I had read it as the landlord giving two months not the tenant.

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