Six Months AST or Twelve Months AST with Mutual Break Clause

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Stew
    replied
    Sorry for the duplication, this earlier post of mine got marked as needing review (I think I refreshed when editing and it failed somewere) so was not visible so I asked this in another thread,, then the moderator made it visible,, I went with the previous advice on the other thread and got rid of the mutual clause making it just a standard 6 month AST.

    All the best Stew.

    Leave a comment:


  • DPT57
    replied
    Join the RLA/NLA and use their model agreement

    Leave a comment:


  • jpkeates
    replied
    Originally posted by MdeB View Post
    If the T exercises the break clause, then he is not required to by law to vacate at the end of the term. It is not a NTQ from the tenant and I understand (from other posters here) that a T NTQ in the fixed term has no effect, even if the LL accepts it. and so a SPT will automatically arise if T remains in possession.
    Exercising a break clause is not serving notice (unless the break clause is badly written).
    If the tenant does it, the tenancy should end at the break.

    Because the tenancy has ended because of "a surrender or other action on the part of the tenant" an SPT shouldn't arise and a remaining tenant is, as far as I can tell, holding over if they don't then leave.

    Break clauses are the devil's own work and I'd avoid them if at all possible.

    Leave a comment:


  • MdeB
    replied
    Originally posted by Stew View Post
    a)

    I just don't understand the need for a break clause at 4 months giving 2 notice in a 6 month AST on openrent.

    I can see this would be included on a 12 month AST but the above looks wrong?


    b)

    Also how would you ask someone to leave at the end of 6 months please? do you need to use an S21 or can you just advise at 4 months that you want the property back at 6 months?

    All the best Stew.
    a) Assuming that the agreement is for a fixed term, and does not contain words about "continuing monthly after the initial term, then it is absolute rubbish, is not legally enforceable, and shows that the authors do not know what they are doing.

    Exercising a break clause does not require the T to leave at the end of the notice. It simply means that the fixed term ends on the stated day. If the T remains in possession, then a SPT arises automatically and nothing the LL does can alter that.

    If the T exercises the break clause, then he is not required to by law to vacate at the end of the term. It is not a NTQ from the tenant and I understand (from other posters here) that a T NTQ in the fixed term has no effect, even if the LL accepts it. and so a SPT will automatically arise if T remains in possession.

    b) You can ask them nicely, but if they refuse, then there is absolutely nothing you can legally do to get them out at the end of the fixed term.
    You need to issue a S21 notice, but that cannot expire on the last day of the fixed term. The notice does not mean that the T has to leave immediately on expiry (but most do) and you might need to take court action to regain possession.

    Leave a comment:


  • Stew
    replied
    Originally posted by DPT57 View Post
    Six months then rolling periodic, and not just during these times
    Hi based on creating a 6 month AST,,, when I looked on openrent for an example it states

    "For example, assuming you are using the standard OpenRent contract that has a fixed term of six months and a break clause at four months, the break clause will work in the following way:
    • Tenant or landlord will give notice to the other party on or before the four month point of the fixed term by giving two months' notice.
    • If either party gives the notice before the four months, it will only come in to effect at the four month point.
    • The two months notice will be carried out as the last two months of the fixed term tenancy and the tenants will leave on the last day of the fixed term of six months.
    "

    Two questions please

    a)

    I just don't understand the need for a break clause at 4 months giving 2 notice in a 6 month AST on openrent.

    I can see this would be included on a 12 month AST but the above looks wrong?


    b)

    Also how would you ask someone to leave at the end of 6 months please? do you need to use an S21 or can you just advise at 4 months that you want the property back at 6 months?

    All the best Stew.

    Leave a comment:


  • Stew
    replied
    Thanks for all the responses, I notice on the contract there is also an option to have a six months contract with a mutual break clause at six months which does not make sense to me so will remove the mutual break clause and just go with the fixed six months then rolling.

    All the best Stew

    Leave a comment:


  • DPT57
    replied
    Six months then rolling periodic, and not just during these times

    Leave a comment:


  • jpkeates
    replied
    As a landlord, bringing the tenancy to an end unilaterally in the face of a tenant determined to stay is quite time consuming and difficult.
    That just comes with the terratory.

    The six month option puts you in a better position than the 12 month with a break clause.
    When a landlord exercises a break clause, if the tenant doesn't leave, a new periodic tenancy is created when the notice expires, so you are in exactly the same position, but later on.

    Leave a comment:


  • Snorkerz
    replied
    In the situation you describe, you would be advised to take the section 8 route for eviction - takes about as long as S21 (less notice usually but longer court time). For s8 the lease the agreement length is irrelevant, however, if you can handle the uncertainty of a potentially shorter let, I would go for a 6 month term to keep your potions open. Remember, you do not have the option to refuse to allow any AST to roll over into a periodic tenancy, only a court can do that (or you come to an agreement with your tenant)

    Post Corona, I anticipate serious delays on evictions - a combination of backlog during the current emergency and a glut of landlords making new applications due to corona-related payment problems.

    Leave a comment:


  • Six Months AST or Twelve Months AST with Mutual Break Clause

    Hi wondering if during these times for new AST's I should be doing

    a) 12 Months AST with 6 Months mutual break clause
    b) 6 Months AST

    Rather than worrying about the longer letter my main concern is being able to take back control of the property as soon as possible if the occupants stop paying. If there was ever a real reason for this I would be as flexible as possible but if they had not lost income and were just wanted to avoid paying I would want to take a different approach.

    In terms of asking someone to leave if I opted for (b) the 6 Month AST then I understand I could just give them notice at 4 months that I would not be renewing the contract or allowing it to roll to a periodic after six months then then would be expected to leave on the last day of the tennacy. Does that notice have to served in a specific way or is it just by way of an email stating such.

    If the occupants refused to leave then it takes a different turn and might well be delayed by the recent no evictions changes.

    From background reading it seems the 6 Month AST is an easier way than trying to give notice to someone notice who is on a 12 Month AST with a 6 Months mutual break clause or have I misunderstood?

    All the best Stew

Latest Activity

Collapse

Working...
X