Query on "contractual periodic tenancy"

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    Query on "contractual periodic tenancy"

    I have a client who wishes us to insert a clause into our standard agreement that states the tenants also have to give 2 months notice should they wish to vacate. I have informed him that whilst he can put this in the contract, even if the tenants sign this, that this clause is not enforcable and as his agents we would not be willing to enforce it. His reply to me was

    "Please do insert a clause about the 2 months notice because my understanding is that if this is agreed (i.e. in initial lease and also in writing between tenant and landlord just prior to the end of the fixed term) then the Statutory Periodic Tenancy can be varied to become a Contractual Periodic Tenancy agreement with an enforceable 2 months notice either way"

    Anyone have any ideas of whether this is correct or not? I know a contractual periodic tenancy is only created when the original tenancy does not have a fixed term which is not true in this case.

    Thanks in advance

    #2
    Why not create a letting which expressly runs:
    a. for fixed term; and thereafter
    b. as a contractual periodic?
    That way, no SPT will ever arise.
    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
      ok, but how can a tenancy become a contractual periodic after a fixed term and what, if any are the implications and will the 2 months notice be acceptable?

      Comment


        #4
        Are you confusing:
        a. an AST/SAT that the Agreement grants for a fixed term (1988 Act continues it as SPT; with
        b. an AST/SAT that the Agreement expressly grants for a fixed term plus a periodic contractual continuation (1988 Act never creates SPT)?
        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
          If you grant a fixed term and no more, then any provision in the agreement as to termination of the statutory periodic tenancy is of no effect. If you grant a fixed term which is to continue bi-monthly that is a bit of a two edged sword as what you are granting is a term equal to the expressed fixed term plus two months, and, when you want to serve a section 21 notice, if you just miss the end of a two monthly period you will end up having to serve almost fourth months' notice. Further, it creates complications and confusion if the rent is payable monthly but the periodic tenancy is bi-monthly.

          Tell your client to keep it simple and not to listen to barrack room lawyers and that trying to get round having a void period is just so lower-middle class.

          Comment


            #6
            Thanks. I have told him that we would not enforce the 2 months notice should the tenant query it.

            You are right LC, he just wants to avoid a void period but like I have told him its a lovely cottage and was let first viewing so no reason to think it will be empty for very long.

            Comment

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