UK Landlord Forum / Life

My tenants and I have signed a 2 year AST with a 12 month break clause, but I want to know whether I can serve them section 21 ahead of the 12 months (9th month giving them 3 months notice for example instead of the standard 2 months). The terms in the contract are...

"Term of Tenancy
The Landlord lets to the Tenant the Premises for a period of 24 months. The Tenancy shall start on and include the 29/05/2014 and shall end on and include the 28/05/2016."

Because they are students, the agent advised that they pay the rent 3 month advances, 2 weeks prior to the due date to accommodate any delays:

"The Rent
The agreed rental is £xxxx per month (£xx per week), and the Tenant (or Guarantor) has agreed to pay "the Rent" to the Landlord three months in advance the sum of £xxxx and thereafter by quarterly payments. The first payment in the sum of £xxxx shall be paid on or before 29/05/2014. The remaining rent payments will be quarterly payments of £xxxx which shall be due two weeks in advance of 29th to ensure that it is received on time and shall therefore be due on 15th of August 2014, November 2014, February 2015, May 2015, August 2015, November 2015, February 2016."

That is, I want to know whether I can serve them 3-month notice on 15th February 2015 to vacate on 28th May 2015 (they would be paid up until then anyway). The lease says:

"The Landlord may bring the Tenancy to an end at or after twelve months of the fixed term by giving to the Tenant at least two months written notice stating that the Landlord requires possession of the Premises. A notice under section 21 of the Housing At 1988 will suffice to implement this sub- clause. The two month Notice Period must begin on a Rent Due Date."

The earliest they can leave bu Section 21 is 19th May 2016

Edit - sorry I reread and see there is a 12 month break clause.

Why don't you just follow the clause you've quoted? Why do three months, you just need to provide at least two months. Also, it doesn't read like a Break Clause, really, but more of a contradiction of your fixed term. The fixed term is 24 months... but the Landlord may bring the tenancy to an end any time after 12 months ( or at 12 months) by serving a Section 21... sounds somewhat like the second half of the fixed term is not really that? If the Landlord can end the tenancy at any time - with appropriate notice - then that's like an SPT (in my mind). All the stuff about rent just confuses your question, I think.

Surely "the AST says" not "the lease says"?

This is a 2 year AST with a 12 month break clause such that either the tenant ( not quoted ) or the landlord can serve notice any time after 12 months ( or at 12 months) by serving a Section 21.

The only reason I was going to provide 3 months is because notice is served ( by either party ) on a rent due date ( paid quarterly ). So I can serve them notice on 15 Feb 2015 ( the final rent due date ) before the 12 month period which ends on 28th May 2015.

(I was advised that a landlord who wants to evict a tenant from a fixed-term assured shorthold tenancy before the fixed-term ends must provide a written notice stating which 'ground' for eviction is being used, unless the tenancy agreement contains a 'break clause'. Which all of mine do...)

Quote from: Pori78 on September 24, 2014, 08:45:58 PMThis is a 2 year AST with a 12 month break clause such that either the tenant ( not quoted ) or the landlord can serve notice any time after 12 months ( or at 12 months) by serving a Section 21.

It's a 12 month fixed term masquerading as a 24 month fixed term. It might as well be a 12 month fixed term AST moving to an SPT... same effect, really, except for the poor Tenants (as the Landlord seems to have the upper-hand). In my mind a break clause should be mutually beneficial... yours seems to allow you to take action only, if I've read it correctly? There might be another section giving the Tenants much the same option, I don't know.

No, there is a reciprocal statement: "The Tenant(s) may bring the Tenancy to an end at or after twelve months of the fixed term by giving the Landlord at least two months written notice stating they wish to vacate the Premises. The two month Notice Period must begin on a Rent Due Date."

Quote from: Pori78 on September 24, 2014, 09:19:56 PM
No, there is a reciprocal statement: "The Tenant(s) may bring the Tenancy to an end at or after twelve months of the fixed term by giving the Landlord at least two months written notice stating they wish to vacate the Premises. The two month Notice Period must begin on a Rent Due Date."

That's nice... at least you're not a git. 

Quote from: Pori78 on September 24, 2014, 09:01:30 PM
(I was advised that a landlord who wants to evict a tenant from a fixed-term assured shorthold tenancy before the fixed-term ends must provide a written notice stating which 'ground' for eviction is being used, unless the tenancy agreement contains a 'break clause'. Which all of mine do...)

This is Section 8.

And, did you read...

http://www.propertyinvestmentproject.co.uk/blog/tenancy-agreement-break-clauses/

...on this site?

Bare in mind that I have copied and pasted a TINY fraction of the agreement and I have ensured that there are clauses in place that give my tenants flexibility. In the last 10 years of renting out a couple of flats, I've never had to actually exercise it, and I'm really hoping I still don't. In fact, I have had 2 tenants exercise the break clause however so I know it can work.

BUT in the first 3.5 months of these particular tenants' occupation, I haven't experienced this much hassle (and potential costs) in such a short space of time, so at some point I need to decide if this tenancy is both economically viable and worth the agro.