one year minus one day?

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  • one year minus one day?

    I found a tenancy contract that has a duration of one year minus one day
    e.g starts 23rd of May 2000 and finishes 21st of May 2001

    anybody knows why?

  • #2
    It must be what the landlord and tenant agreed to. The fixed term can be whatever both parties agree to.

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    • #3
      It is not uncommon. I sometimes do this, for two reasons :

      (i) to allow time in between lettings to deep clean the property without the 'start' date each year creeping later and later (I let to students and July 1st or Sept 1st is their preferred start date each year).
      (ii) to make the '12 month' letting period exactly 52 weeks (365 days = 52 weeks + 1 day, a leap year is 52 weeks + 2days). Not essential to adjust for this reason, but it makes the maths more transparent! (Some students pay monthly, some termly, some half-yearly, some all in one go).

      As Poppy says, the fixed term can be as long or short a time as both parties agree to.
      'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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      • #4
        Originally posted by TNT View Post
        I found a tenancy contract that has a duration of one year minus one day
        e.g starts 23rd of May 2000 and finishes 21st of May 2001. anybody knows why?
        The reason is because of old Stamp Duty rules which required SD to be paid on tenancies of 1 year or more duration, so to avoid it you made it for one day fewer. It's probably a very ancient example of a tenancy agreement methinks.
        The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

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        • #5
          Originally posted by Paul_f View Post
          The reason is because of old Stamp Duty rules which required SD to be paid on tenancies of 1 year or more duration, so to avoid it you made it for one day fewer. It's probably a very ancient example of a tenancy agreement methinks.
          That sounds likely (but, of course, Stamp Duty was abolished several years ago). Similar 'year less a day' lettings occur on agricultural land.
          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
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