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Termination of agreement

Started by Martha, January 24, 2016, 11:13:25 AM

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Martha

For AST/SPT contracts starting after October 2015, can I confirm that there is nothing in the text of my terminating agreement preamble which is now obsolete or would compromise me in any way.

The Landlord may end this Agreement by giving the Tenant at least two calendar months written notice in accordance with Section 21 of the Housing Act 1988, requiring possession of the Property on a date specified in the notice.  The Tenant may end this Agreement by giving the Landlord at least one calendar month written notice (expiring on the last day of a rental period and not before the last day of this Agreement)


And then the first paragraph in relation to section 21 :

7.1.   Service of such notice will be in accordance with the provisions of S196 of the Law of Property Act 1925 served at Commencement or will be sent by first class post or hand delivered to the Property by the Landlord or his agent. If the Landlord is aware that you have moved to another address, he will also send a copy of the notice to that address by first class post.  This notice can be served at any time but the Landlord cannot recover possession until the end of the fixed term or before 6 months has lapsed from the Commencement, whichever is the later.  If the Tenant gives up possession of the Property before the date specified in the notice, the Agreement ends on the date specified in the notice unless you are leaving earlier in accordance with the terms of your termination notice.  Upon Expiry of the Landlords notice, he may make a claim to the court for recovery of possession of the Property.


Thanks.

theangrylandlord

#1
Be wary of any advice from a forum especially my own
Do your own research

I guess this is linked to your earlier posts on s21 and you now have a tenancy agreement post Oct'15 will be a common problem .....

Some thoughts below:
1. Without the whole agreement not possible to give a truly comprehensive answer
2. "not before the last day of this Agreement" is poor drafting as the last day of this Agreement is not technically defined if it rolls into an Periodic Tenancy..should specify last day of the Fixed Term and define that somewhere
3. "Service of such notice.......1925" seems odd that only this notice and not all notices are served pursuant to that Act; don't you have a Notices clause elsewhere?
4. "Served at Commencement" no longer possible or at least any notice so served shall not be valid you need to wait 4 months from Commencement (assuming that word means what I think it does)
5. reference to the word "you" is incorrect , references should be only to Landlord, Tenant or Agent (in some cases Sub-Tenant)
6. Reference to word "he" is acceptable (assuming there is a gender sub-clause in the interpretation clause) but in my personal view rather slack others will disagree.
7. "This notice can be served at any time" it cannot.
8. Why is Expiry capitalised?

8. Furthermore the words "if the Landlord is aware" is contractually rather dumb (fire your solicitor) it should say "if the Tenant has Notifiied the Landlord that" because as written it introduces ambiguity in that there is no way to prove or disprove the landlord is aware, why jeopardise a S21 service in that way?

Apart from that all ok IMHO. :D

Best of luck

Martha

A.L.L. many thanks for your thorough reply, Not sure about the Notices clause... this is the full text I currently have for the landlord:

7.   TERMINATING THIS AGREEMENT
The Tenant understands that the Landlord or their Agent can recover possession at the end of the Term (as defined) and may end the tenancy early if the Tenant fails to carry out their responsibilities. The Landlord may end this Agreement by giving the Tenant at least two calendar months written notice in accordance with Section 21 of the Housing Act 1988, requiring possession of the Property on a date specified in the notice.  The Tenant may end this Agreement by giving the Landlord at least one calendar month written notice (expiring on the last day of a rental period and not before the last day of this Agreement)

THE LANDLORD

7.1.   Service of such notice will be in accordance with the provisions of S196 of the Law of Property Act 1925 served at Commencement or will be sent by first class post or hand delivered to the Property by the Landlord or his agent. If the Landlord is aware that you have moved to another address, he will also send a copy of the notice to that address by first class post.  This notice can be served at any time but the Landlord cannot recover possession until the end of the fixed term or before 6 months has lapsed from the Commencement, whichever is the later.  If the Tenant gives up possession of the Property before the date specified in the notice, the Agreement ends on the date specified in the notice unless you are leaving earlier in accordance with the terms of your termination notice.  Upon Expiry of the Landlords notice, he may make a claim to the court for recovery of possession of the Property.

7.2.   The Landlord may end this Agreement if the Tenant forfeits and breaches any term of this Agreement: fails to pay us rent 14 days after it is due, (whether formally demanded or not); causes a nuisance or annoyance; the Landlord has genuine reasons for believing that the Tenant has abandoned the Property; the Tenant becomes bankrupt. If any of these things happen, the Landlord has the right to enter the Property after the bailiffs evict the Tenant following a court order for possession. The Landlord may start this process by sending you a notice in accordance with the procedure set out in Section 8 of the Housing Act 1988.

7.3.   If applicable, the Landlord may also end this Agreement under Grounds 1 or 2 under Section 8. The Landlord (or, in the case of joint Landlords, at least one of them) has occupied the Property as his only or principal home and may require the Premises as his or his spouse's only or principal home. The Landlord hereby gives notice that possession of the Property may be recovered on Ground 1 in Part I of Schedule 2 to the Housing Act 1988; and there is a mortgage on the Property which, if not paid, may result in repossession under Ground 2 of the Housing Act 1988. If the Landlord wants to use either Ground, he will start the procedure by serving you with a Section 8 Housing Act 1988 notice. That notice is for two months and he cannot apply for a court hearing until after the two months have passed.


Martha

Quote from: Martha on January 25, 2016, 08:38:53 AM
A.L.L. many thanks for your thorough reply,  Yes I have a tenant about to leave and a new ("post Oct 2015") tenant due to move in shortly.

Not sure about the Notices clause... this is the full text I currently have for the landlord, I would be grateful for any further gotchas.

7.   TERMINATING THIS AGREEMENT
The Tenant understands that the Landlord or their Agent can recover possession at the end of the Term (as defined) and may end the tenancy early if the Tenant fails to carry out their responsibilities. The Landlord may end this Agreement by giving the Tenant at least two calendar months written notice in accordance with Section 21 of the Housing Act 1988, requiring possession of the Property on a date specified in the notice.  The Tenant may end this Agreement by giving the Landlord at least one calendar month written notice (expiring on the last day of a rental period and not before the last day of this Agreement)

THE LANDLORD

7.1.   Service of such notice will be in accordance with the provisions of S196 of the Law of Property Act 1925 served at Commencement or will be sent by first class post or hand delivered to the Property by the Landlord or his agent. If the Landlord is aware that you have moved to another address, he will also send a copy of the notice to that address by first class post.  This notice can be served at any time but the Landlord cannot recover possession until the end of the fixed term or before 6 months has lapsed from the Commencement, whichever is the later.  If the Tenant gives up possession of the Property before the date specified in the notice, the Agreement ends on the date specified in the notice unless you are leaving earlier in accordance with the terms of your termination notice.  Upon Expiry of the Landlords notice, he may make a claim to the court for recovery of possession of the Property.

7.2.   The Landlord may end this Agreement if the Tenant forfeits and breaches any term of this Agreement: fails to pay us rent 14 days after it is due, (whether formally demanded or not); causes a nuisance or annoyance; the Landlord has genuine reasons for believing that the Tenant has abandoned the Property; the Tenant becomes bankrupt. If any of these things happen, the Landlord has the right to enter the Property after the bailiffs evict the Tenant following a court order for possession. The Landlord may start this process by sending you a notice in accordance with the procedure set out in Section 8 of the Housing Act 1988.

7.3.   If applicable, the Landlord may also end this Agreement under Grounds 1 or 2 under Section 8. The Landlord (or, in the case of joint Landlords, at least one of them) has occupied the Property as his only or principal home and may require the Premises as his or his spouse's only or principal home. The Landlord hereby gives notice that possession of the Property may be recovered on Ground 1 in Part I of Schedule 2 to the Housing Act 1988; and there is a mortgage on the Property which, if not paid, may result in repossession under Ground 2 of the Housing Act 1988. If the Landlord wants to use either Ground, he will start the procedure by serving you with a Section 8 Housing Act 1988 notice. That notice is for two months and he cannot apply for a court hearing until after the two months have passed.


theangrylandlord

#4
Hi Martha

Sorry I am a bit thick.  What is it that you are asking?
If it is in reference to the Notices clause comment usually there is a statement (if not a clause) stating that ALL notices are served in writing in accordance with the LPA 1925 or LTA 1927.  Usually this clause specifies in what form the notice is to be given and how delivered.
If you don't have one its no big deal (usually).  Was just wondering why the reference to the Act was made to this notice and not all notices.  No biggie just odd.

Let me know if I have misunderstood your second post.
In reference to the other clauses:
1. the word "us" in Clause 7.2 ?!
2. The word "you" in clause 7.3.   Tut tut tut.  ;)

3. Also I am not sure why clause 7.3 highlights only three grounds on which the Landlord may claim possession. There are 17 grounds on which to claim including grounds (what about) 10,11,12,13...,15? It does strike me as odd you only refer to these three mandatory grounds in this clause and none of the discretionary grounds.
A decent termination right clause would encompass many more Section 8 Grounds although clause 7.2 seems to capture the intent of some of the other Section 8 Grounds some are not covered at all e.g. Ground 11 (persistent late rent payments) and Ground 15 (furniture abuse).

Or maybe you haven't sent the full clause 7 across?

Suggest you look at Section 8 and convince yourself you are covering them all in your contract or as these are statutory rights of the Landlord just reference any and all Grounds under Section 8 LTA 1988.  The latter is a little unfair on a tenant though and you are better off listing them out in a case a claim of unfair contract terms are hurled at you.

4. Also I notice "Property" and "Premises" are both used interchangeably - you sure that they are both defined terms?

5. "the Landlord has genuine reasons for believing that the Tenant has abandoned the Property" hmmm, this isnt a reason under Section 8 LTA 1988 so you have added this?  How to enforce/prove? If not in a Section 8 notice what are you going to say to the judge?  If they have abandoned then its unlikely the tenant will pay the rent so you would claim under Ground 8 - not abandonment. Same goes for bankrupt tenant not covered in Section 8 (their parents could pay the rent etc).  It doesnt work with the statement on court order/bailiff as a Section 8 cannot specify those reasons..

6. "If any of these things happen, the Landlord has the right to enter the Property after the bailiffs evict the Tenant following a court order for possession." Odd statement, if the tenant is evicted then of course the Landlord can enter isnt it stating the obvious? Or is it intended to imply that a bailiff will be calling?  If the latter then why not just say that?  Doesn't hurt but rather odd.

7. A Section 8 notice specifying Ground 14  does not need to provide 2 months grace period for the tenant.  You kind of cover Ground 14 in cluase 7.2 but then limit yourself to 2 months notice...why?

You need a better solicitor (if you are using one) some of the sentance construction is a tad dodgy but not necessarily incorrect. e.g. "The Landlord may start this process by sending you a notice in accordance with the procedure set out in Section 8 of the Housing Act 1988." there is no procedure set out here.  Suggest "The Landlord may start this process by sending theTenant a notice in accordance with Section 8 of the Housing Act 1988." 

Theres too much else to mention but perhaps not totally incorrect.

Best of luck

Martha

A.L.L many thanks for spending the time to go through that.  I will print it off and get any necessary amendments made.

My original motivation for asking was to see if any of the wording was specific enough to now be oboleted by the section 21 changed in October 2015.

Many thanks.