Ongoing dispute - Fixed Term AST and Notice Periods

zedmeister

I have a bit of dilemma. I am current nearing the close of a 12 months Assured Shorthold Tenancy (ending towards the end of May). There is a clause in agreement that states "If the tenant does not intend to extend their term in the property, then the tenant will provide written notice to the Landlord no less than 90 days before the end of the term".

Like an Idiot, I missed that part when informing the landlord that we were possibly looking to end the tenancy at the end of the term as we are in the process of buying a house. Obviously the landlord wants three months notice meaning a handover in July.

However:

1. The tenancy period given for this agreement is 12 months
2. The agreement states: ”This tenancy shall expire at the end of the Term”
3. The agreement states: “Before the end of the Term ends, the Landlord may offer the Tenant a renewal with reasonable changes. The Landlord must notify the Tenant of these changes not less than 90 days before the term ends.”
4. As we have not received any renewal offer, is it correct that the tenancy agreement becomes a periodic agreement?
5. If so, could we then issue 1 months notice on the day the periodic tenancy starts (which is the day rent is paid) for the tenancy to end the day before the next rental payment is due?

Appreciate your advice

princeofpounds

As we have not received any renewal offer, is it correct that the tenancy agreement becomes a periodic agreement?

An offer has nothing to do with it. Unless you sign a new tenancy (even a 'renewed' tenancy would be new) then it becomes statutory periodic.

If so, could we then issue 1 months notice on the day the periodic tenancy starts (which is the day rent is paid) for the tenancy to end the day before the next rental payment is due?

The day before. Not the day it starts.

agrinnall

I don't think that a clause requiring notice to be given in order to leave at the end of the fixed term would be enforceable, you can walk away then without giving any notice at all. Or if you want to leave later than that then as you say you will go onto a period tenancy and you'll just need to give the correct one month notice relating to the tenancy dates.

jjlandlord

princeofpounds wrote: »

The day before. Not the day it starts.

To be pedantic, though it has legal significance: It is not possible to serve notice on a tenancy that does not exist yet.

RAS

England, Wales or Scotland? The law is different.

zedmeister

Apologies, it's in England

zedmeister

Thank you for your responses. The landlord is claiming the contract auto-renews even though there are no clauses within the agreement.

I have been doing extra research this morning and it appears that at the end of 12 months, our contract expires regardless of the 90 notice period. I have found this guidance which references case law and OFT Guidance:

hlpa.org.uk/cms/wp-content/uploads/2011/09/FAQ-2-Fixed-term-leaving-last-day.docx

Also, this from the OFT referenced in the above doc (Section 3.78):
oft.gov.uk/shared_oft/reports/unfair_contract_terms/oft356.pdf

From what I can see, we don't have to give notice as our 12 month term expires. I will probably now seek a professional legal opinion on where I stand, but any additional comments are appreciated.

00ec25

if you are happy to leave on the date of the expiry of your 12 month AST then yes you are correct, you do not have to give any notice at all. The contract has finished as scheduled

LL put clauses in about notices because they want to know what your intentions are and do not want to be left in the lurch if you simply move out. Such clauses carry little weight in law as you cannot be sued for not renewing a contract and the LL would suffer no financial loss from you not doing so since the contract has finished and any void period they incur as a result of you leaving and them not replacing you immediately is not your fault. Therefore the LL has no claim for compensation - which is the only remedy available if they sue you for breach of a contractual term

agrinnall

zedmeister wrote: »

Thank you for your responses. The landlord is claiming the contract auto-renews even though there are no clauses within the agreement.

Nonsense, even if there were clauses they would have no effect unless you agree to a new fixed tenancy.

zedmeister wrote: »

From what I can see, we don't have to give notice as our 12 month term expires. I will probably now seek a professional legal opinion on where I stand, but any additional comments are appreciated.

You could speak to Shelter to get some more reassurance, but the information you have been given already and what you've found yourself is correct.

zedmeister

So, I responded to the Landlord referencing the above and including advice from our solicitor. I've had a rather nasty and, frankly, absurd response:

- Landlord now believes, as we failed to give notice that we were leaving at the end of 12 months fixed term AST, we have automatically entered into another 12 month fixed term contract (!!!) and LL is making threats to sue for a full 12 months rent if we leave at the end of the AST when it expires naturally.

- LL believes that the agreement does not expire at the end of 12 months ("something the contract does not require us to do") even though, as you see above, it has a start date and a fixed term of 12 months.

- LL also claiming "The addendum's to the agreement that you signed surpasses your extractions below relating to a standard agreement". This is in reference to the Common law position and views of OFT referenced above that I sent LL.

As you can imagine I am a little stressed. I know LL is wrong in this as the response comes across as a rant and is threatening X, Y and Z will happen if we don't give LL piles of money. Also, from the inferences in the full message, I get the feeling the LL believes the agreement overrides the Housing Act 1988 in that, when a fixed term AST ends, a Statutory Periodic Tenancy starts. LL appears to be claiming otherwise.

More importantly, the Landlord is currently overseas and looks like they're relocating permanently. They don't have a UK based agent of any kind. Also, despite being asked, I don't think they'll have a nominated person(s) who can take custody of the keys when the AST expires (no doubt with the intention of claiming we still have custody when the AST expires). What realistic options are open to us in regards to returning custody of the property?

Again, further advice and reassurance appreciated.

harrys_dad

Whatever your LL "believes" does not change the law. When exactly do you want to leave? Get some clear and exact advice on here about date to give notice. What is the address on your tenancy agreement for "issuing of notices"? Do everything in writing, and do not believe a word your LL says.

A few other important points. Is your deposit protected? Have you been issued with the prescribed information? Is there a gas certificate?

Oh and by the way, you really don't need to pay for solicitor's advice, the good people on here have much more experience and knowledge than most solicitors in this area