Break Clause or not to Break Clause?

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  • Break Clause or not to Break Clause?

    Hi there

    I've had a letter from my letting agent just informing me that the current tenancy finishes on 19 May and encloses the usual forms asking if I want to renew/happy for the tenant to continue if he wishes/don't wish to renew etc etc.

    I'm happy for the current tenant to renew if he wishes and I think this is going to be the case, for another six months. However, the letting agent asks if I would allow a break clause in the agreement.

    I don't know whether to allow a break clause or not.

    Any thoughts please?

    Thanks. Bubble.

  • #2
    You are L. Was this the first letting by you to this T? Has he been a good T? Was the 'break-clause' request his or merely invented by A?
    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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    • #3
      Hi

      This was my first ever letting. The tenant has been good, although he's sometimes a bit late paying, he didn't set up a standing order, although apparently is very apologetic when they ring him and he pays over the phone straight away.

      The break clause seems to be merely invented by the Letting Agent, basically they say in the letter because of future uncertainty in the current climate more people are requesting break clauses.

      B

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      • #4
        Do not let A tell you what to do. You are principal; A is, er, agent (and not vice-versa!)
        As T is sometimes a bit late paying, you might think that a break clause would be useful: to you, rather than to T.
        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
          I'm more concerned that he will use the break clause and leave me in the lurch. He is looking for a property to buy in the area and as yet has not found anything suitable. When they do (father and son) they will want to do stuff to it as they have allergies and so will want to continue to stay at mine until the new property is ready.

          Mmm I think I'm answering my own question here, I suppose it would be ok to have the break clause as it's doubtful they'll buy somewhere and move out there and then.

          B

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          • #6
            Even without a break-clause, T might leave you in the lurch: if T just ups and offs.
            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


            • #7
              Originally posted by Bubbleicious5 View Post
              He is looking for a property to buy in the area and as yet has not found anything suitable. When they do (father and son) they will want to do stuff to it as they have allergies and so will want to continue to stay at mine until the new property is ready.
              Why don't you just let the contract become an SPT. We were looking to re-locate last year, it would have been a 300 mile move. So we were going to rent while we looked for a house in the new area. We would have wanted the contract to roll onto an SPT, so we could buy a house that needed work doing and stay in the rental property until we could move into the new house.

              Comment


              • #8
                Originally posted by Mrs Mug View Post
                Why don't you just let the contract become an SPT. We were looking to re-locate last year, it would have been a 300 mile move. So we were going to rent while we looked for a house in the new area. We would have wanted the contract to roll onto an SPT, so we could buy a house that needed work doing and stay in the rental property until we could move into the new house.
                No I prefer to do it six monthly. I ideally want to do holiday letting and use it myself occasionally as it is a beautiful sea view apartment. But my financial problems tell me otherwise at the moment.

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                • #9
                  Originally posted by Bubbleicious5 View Post
                  No I prefer to do it six monthly.
                  You've answered your own question. It's a six month contract or nothing.

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