Mutual Break Clause

DavidGre

Hi all

I wondered if somebody would be able to help me interpret a Mutual Break Clause in my current Tenancy Agreement. The wording is as follows:

"Any time after six months of the initial fixed term of this tenancy (or after a similar period following a fixed term extension to the original tenancy) either party may invoke this break clause by providing a minimum of two months written notice to the other (such notice to expire on the last day of a rental period of a tenancy)."

To me, it isn't clear whether you invoke the break clause on 6 months (so provide notice after 4), or the act of giving notice is invoking the break clause, and as such can only give notice after 6 (and vacate the property after 8).

In summary - I'm not clear on whether the earliest I can give notice is after 4 months, or after 6 months. Has anyone seen a similar contract before that would be able to help?

Many thanks in advance - any comments are much appreciated.

David

Guest101

DavidGre wrote: »

Hi all

I wondered if somebody would be able to help me interpret a Mutual Break Clause in my current Tenancy Agreement. The wording is as follows:

"Any time after six months of the initial fixed term of this tenancy (or after a similar period following a fixed term extension to the original tenancy) either party may invoke this break clause by providing a minimum of two months written notice to the other (such notice to expire on the last day of a rental period of a tenancy)."

To me, it isn't clear whether you invoke the break clause on 6 months (so provide notice after 4), or the act of giving notice is invoking the break clause, and as such can only give notice after 6 (and vacate the property after 8).

In summary - I'm not clear on whether the earliest I can give notice is after 4 months, or after 6 months. Has anyone seen a similar contract before that would be able to help?

Many thanks in advance - any comments are much appreciated.

David

If you have a 6 month fixed contract and want to leave at (or before, but not after) the 6 month mark. You need no notice. Simply move out.

However, if you stay even a day past 6 months, you are there for a total of 9. - this seems to be a contractual periodic tenancy.

It's worth checking if there is any mention of the tenancy converting to a statutory periodic tenancy - for some reason some people put this into the contract.

G_M

guest - what makes you think this is a 6 month fixed term? Far more likely it is a 12 month....

David - seems pretty clear:

To invoke the BC you must serve 2 months notice. You cannot invoke until after 6 months. Therefore the earliest you can end the tenancy is 8 months.

Guest101

G_M wrote: »

guest - what makes you think this is a 6 month fixed term? Far more likely it is a 12 month....

David - seems pretty clear:

To invoke the BC you must serve 2 months notice. You cannot invoke until after 6 months. Therefore the earliest you can end the tenancy is 8 months.

I'm not sure.

It read to me like a contractual periodic tenancy, following the fixed term. Happy to be corrected.

Also the clause isnt well written. The OP can only serve notice after the 6 months. It must be 2 months notice ending on the rental period end date. if giving notice on 6 months and 1 day, the only way to provide the full 2 months notice would be from month 7-9. - unless i've completely lost the plot (which is always a distinct possibility)

Also the rental period of a fixed term would be the fixed term, no? Since it is yet to enter a periodic tenancy?

"Any time after six months of the initial fixed term of this tenancy (or after a similar period following a fixed term extension to the original tenancy) either party may invoke this break clause by providing a minimum of two months written notice to the other (such notice to expire on the last day of a rental period of a tenancy)."

G_M

I discounted a Contractual Periodic since a Break Clause would be superfluous.
For the same reason it is superfluous in a Statutory Periodic following a fixed term. Indeed, the Break Clause actually refers to the fixed term.

The BC would be meaningless in a 6 month fixed term.

The only reason for a Break Clause would be in a (longer) fixed term tenancy eg 12 months or more.

Like many Break Clauses, yes, it is poorly written, however it refers to 'rental period', not 'tenancy period'. The 'rental Period' would relate to the period covered by each rent payment (weekly or probably monthly).

Yes, arguably notice cannot be served before the 1st 6 months is up (ie day 1 of the 7th rental period) so the last day of the 7th rental period would be a day short of the required 2 months notice, which would be insufficient to end the tenancy after 8 months.

I strongly suspect this was not the intention, but indeed it is exactly the same scenario as serving notice to end a SPT at the end of the 1st tenancy period following expiry of a fixed term....

Guest101

G_M wrote: »

I discounted a Contractual Periodic since a Break Clause would be superfluous.
For the same reason it is superfluous in a Statutory Periodic following a fixed term. Indeed, the Break Clause actually refers to the fixed term.

The BC would be meaningless in a 6 month fixed term.

The only reason for a Break Clause would be in a (longer) fixed term tenancy eg 12 months or more.

Like many Break Clauses, yes, it is poorly written, however it refers to 'rental period', not 'tenancy period'. The 'rental Period' would relate to the period covered by each rent payment (weekly or probably monthly).

Yes, arguably notice cannot be served before the 1st 6 months is up (ie day 1 of the 7th rental period) so the last day of the 7th rental period would be a day short of the required 2 months notice, which would be insufficient to end the tenancy after 8 months.

I strongly suspect this was not the intention, but indeed it is exactly the same scenario as serving notice to end a SPT at the end of the 1st tenancy period following expiry of a fixed term....

Good points all. I suspect you are correct.

and i knew i was missing something with rental period and tenancy period - thanks for clearing it up for me.

jjlandlord

Why would a break be meaningless with a term of less than 6 months?