Can L grant AST with break clause from month1?

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

    Can L grant AST with break clause from month1?

    Has anyone ever heard of this?

    I recently received a letter from LA about renewing my existing AST which is due to end in a month or so. Extension fee is £46, which I am happy to pay for 12 months security of tenure, as I love the house, LL & LA are on the whole great and I have no plans to move for the foreseeable future.

    HOWEVER... LA mentioned this morning that either party can give notice at any time during the extension (1mth from tnt, 2 from LL) as it includes a release clause from month 1! As far as I can see, this puts me in no better a position than simply rolling onto a statutory periodic, so what's the point? (The only possible advantage I can see is fixing the rent for 12 months, but what's to stop LL serving notice and offering the tenancy back at a higher rent?)

    Is this even a legal/valid break clause? As I was under the impression that a fixed term could not be for less than 6 months. (Not sure if it makes a difference, but the extension agreement is just a single sheet of paper, rather than a whole new AST.)

    LA has given the usual spiel about "LL is not going to serve notice as this is an investment property for him". I know from a neighbour that LL inherited the property from parents (who lived there) so it is unlikely he has a BTL mortgage to get caught out by when rates rise - but even if he has no intention of selling now, his circs could easily change unexpectedly. Surely the point of an extension is to give LL & tnt some security?

    #2
    Yes, it's valid. There is no minimum AST length nor any bar on L inserting an early break clause (as from 1997). However, even if L serves an early Break Notice, you might not leave. L would therefore still need to serve a s.21 Notice (perhaps counting as the Break Notice too) and no s.21 Possession Order could take effect during the AST's first six months.
    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


      #3
      Thanks.

      So any notice they serve to leave before the six months is up would be unenforceable in court? (Assuming it's not served on breach of tenancy/rent arrears grounds that is.)

      And does the Fixed Term determine when a valid S21 can be served, or could a break clause override this? i.e. Assuming a 12 month AST (or extension) with 6 month break clause, can a S21 be served at 6 months, or would any notice served (to end) before fixed term be an unenforceable notice?

      I've asked LA to take out the break clause and they're confirming that LL is OK with this, but I still can't see the point in renewing with immediate break clauses.

      Comment


        #4
        Originally posted by Pepzofio View Post
        So any notice they serve to leave before the six months is up would be unenforceable in court? (Assuming it's not served on breach of tenancy/rent arrears grounds that is.)
        Yes. No "s.21" Possession Order can operate within fixed term, unlike a s.8 Possession Order.

        Originally posted by Pepzofio View Post
        And does the Fixed Term determine when a valid S21 can be served, or could a break clause override this? i.e. Assuming a 12 month AST (or extension) with 6 month break clause, can a S21 be served at 6 months, or would any notice served (to end) before fixed term be an unenforceable notice?
        Yes. The fixed term can be ended early by a Break Clause Notice. However, see my last post about s.21.
        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


          #5
          Right. Think I've got it.

          Thanks!

          Comment

          Latest Activity

          Collapse

          Working...
          X