Break clause in contract/ rolling contract?

mouche

Hi all..I know this question has been answered in many forms before but I was hoping someone would be able to advise on my angle.

We signed a one year contract with our landlord last year. The contract has now expired (a week ago) and I assume we are now on a rolling contract. Our landlord has contacted us by SMS and says he wants to renew the contract with us on the same terms and that as we have been good tenants, he won’t be increasing the rent.

Now the thing is, though we want to continue living in this house for the time being, it is possible that we will want to move out of the area before another year is up. So we don’t want to be tied into a one year contract. We would be happy to be on a rolling contract (which, if I understand correctly, means we have to give a month’s notice when we want to move out and our landlord has to give 2 months notice. Please correct me if I’m wrong). I’m not sure if our landlord knows about rolling contracts as this is the only property he rents out.

Would it be fair for us to give him the following options:
1) Stay on rolling contract
2) Sign a new contract but as that there be some sort of break clause in there.

If he insists on a new contract and agrees on a break clause, is there some kind of standard wording we should ask for?

Also, from the point of view of the landlord’s out there, if your tenants and were paying a rent that was slightly above average for the area, taking reasonable care of the property and in general good tenants, would you have a problem with a break clause/ rolling contract? We definitely don’t want to move right now but we want the flexibility to do so a few months down the line.

Thanks for all input.

financial_warrior

It really depends what type of contract you currently have. If your contract is for a fixed-term, and doesn't state that it will roll-on month-to-month following the initial 12 month term, then you're officially out of contract, and the landlord is able to serve a Section 8 notice to quit. Realistically, your landlord will want you to stay on, as you're good tenants, so now it's time to negotiate:

He's going to want you on a 12 month contract again, but you don't want one. So why not compromise on 12 months, with a break clause that allows either party to give 2 month's notice after 6 months?

One other thing, if you're good tenants, why doesn't he consider reducing the rent? If you don't ask, you won't get.

tbs624

financial_warrior wrote: »

It really depends what type of contract you currently have. If your contract is for a fixed-term, and doesn't state that it will roll-on month-to-month following the initial 12 month term, then you're officially out of contract, and the landlord is able to serve a Section 8 notice to quit.

The contract does not need to state that it will "roll on" - firstly its a fixed term contract so it expires at...erm.. the expiry date. *Statute* provides for the tenant to continue occupation under a statutory periodic tenancy, if the parties have not signed up for a new FT. Why would the LL try to use a Section 8?

The LL has to give the OP two months notice if he does want them to go. However, why would the LL want to trade a reliable T for the possibility of a couple of months' void and having to start over with a new T who is an unknown quantity?

financial_warrior

Cool, so we're all clear that the landlord has to give the tenant 2 months notice, regardless of whether the fixed-term has ended, and the tenant doesn't have to agree to any new terms. Good to know, which wasn't what I had been told.

I guess the Section 8 stuff depends on whether a 21 notice to quit was served during the fixed-term... which I guess in this case it wasn't, so not applicable.

monkeymonkey_3

Hi, I was browsing looking for info, when I found this thread, and wonder of someone can clarify for me. My situation is that a couple of days ago we received a letter from letting agent, saying that our 6 month contract will be up in 2 months time, and since we have to give 2 months notice if we want to leave, that we need to either: 1)sign new 6 month contract, 2)sign new 12 month or 3)give notice to leave.

They've also stated that rent will increase by another £20/month (increased by £30/m 4 months ago when we last renewed).

Like the OP, we want to stay for now, but are considering moving to new area and so would prefer not to be tied in for 6 months (so couldn't move 'til 8 months from now).

Have called agents and asked if we can have rolling coontract instead, but was told no, this isn't possible (company policy) and that they doubt we'd find anywhere else that would do this either.

From their letter, I was under the impression that we only have 2 options, sign new contract or leave. But, having seen the above posts, I'm now confused? Can anyone advise what we can do?
Thanks.

sooz

financial_warrior wrote: »

I guess the Section 8 stuff depends on whether a 21 notice to quit was served during the fixed-term... which I guess in this case it wasn't, so not applicable.

section 8 is served for rent arrears

http://www.tenancyagreementservice.co.uk/section-8-notice-to-quit.htm#ground-2

sooz

monkeymonkey wrote: »

Hi, I was browsing looking for info, when I found this thread, and wonder of someone can clarify for me. My situation is that a couple of days ago we received a letter from letting agent, saying that our 6 month contract will be up in 2 months time, and since we have to give 2 months notice if we want to leave, that we need to either: 1)sign new 6 month contract, 2)sign new 12 month or 3)give notice to leave.

They've also stated that rent will increase by another £20/month (increased by £30/m 4 months ago when we last renewed).

Like the OP, we want to stay for now, but are considering moving to new area and so would prefer not to be tied in for 6 months (so couldn't move 'til 8 months from now).

Have called agents and asked if we can have rolling coontract instead, but was told no, this isn't possible (company policy) and that they doubt we'd find anywhere else that would do this either.

From their letter, I was under the impression that we only have 2 options, sign new contract or leave. But, having seen the above posts, I'm now confused? Can anyone advise what we can do?
Thanks.

Have you at any point received a Section 21 notice? The LA may have served you with one when or just after, you signed the initial AST.

Have you tried contacting the LL directly, to ask his/her opinion?

LA's don't like to allow tenants onto periodic tenancies (rolling contracts) as it makes it harder for them to squeexe more fees out of you & your LL.

monkeymonkey_3

sooz wrote: »

Have you at any point received a Section 21 notice? The LA may have served you with one when or just after, you signed the initial AST.

Have you tried contacting the LL directly, to ask his/her opinion?

LA's don't like to allow tenants onto periodic tenancies (rolling contracts) as it makes it harder for them to squeexe more fees out of you & your LL.

Thanks for your reply. I'm not sure what a section 21 notice is? Am at work but will have a look through all papers when I get home. We signed a 6 month when we first moved in, then have signed another since (but have been there over a year, as we never received renewal letter before the end of first 6 month contract, so we signed the second contract about 3 months after the first one ended). Have also just had call back to say that landlord won't accept a compromise on rent and is sticking to the increase. Not sure if I have a number for LL, but will have a look. I thought that everything had to go through the agent?

theartfullodger

So Landlord won't compromise on rent eh??

In your shoes you are entirely at liberty not to compromise on rent either. Do nothing & "periodic" starts. LL can start notice-2-quit stuff at any time he likes, following the proscribed legal timescales.

No, you don't have to go through agent: Normally a good idea not to p**s people off too much tho.

Cheers!

Lodger (A Landlord)

Gwhiz

My 12 month just came up for renewal. The LA offered me the option to renew for 12 or 6 months at same rates. After pointing out the fact that te market was a lot softer than 12 months ago I got a 20% DECREASE in rent.

Your LL sounds a knob!

tbs624

sooz wrote: »

section 8 is served for rent arrears..

There are 17 Grounds under Section 8 and one of them ( Ground 8) is for rent arrears ( with Grounds 10 and 11 as related back-up discretionary grounds) .