Notice to end fixed term tenancy

apjc33

Hello!
Newbie here, looking for some advice on ending a fixed term tenancy before it goes periodic. I've had a search and it seems I can end the tenancy on the last day with no legal requirement to give notice but... my letting agent seems to think differently so if anyone can help shed some light on this I'd really appreciate it!

Situation;

• We've been renting on an AST, 12 month contract, start date 7th March.
• We want to leave on 6th March as the renewal contract terms are suitable for us (changes to notice, etc.).
• Letting agent is adamant we must give 2 months notice, taking us a month over our fixed 12 month period.

Contract terms;

My understanding is that under a fixed term contract we can leave on the last day and have no legal requirement to give notice (but we have because we had been discussing a renewal, and didn't see a need to be obstructive) There is a clause in the contract they are trying to hold us to, which is;

12.4 After six months from the date hereof, either party may determine this tenancy by serving the other party with no less than two months written notice to run in line with the tenancy commencement date.

From what I've read online this term wouldn't be enforceable and it sounds like a break clause, not a end a tenancy clause;
For example in their 2005 guidance on Unfair Terms in Tenancy Agreements they say at paragraph 3.78:
We appreciate that landlords will want to ensure that their properties are not left empty between tenancies, but object to terms that impose a contractual obligation on the tenant to give notice in order for the tenancy to be terminated at the end of the fixed term.

Is this correct? Should I stick to 6th March and if I do, what are they able to do - withhold our deposit for the additional month's rent? We will not be staying a day longer than the original term so it won't turn into a periodic tenancy.

Any advice would be greatly appreciated!

Guest101

You never have to give notice to end a fixed term contract.


Edit: I'd either say nothing, or state quite simply:


The contract was for 12 months and is now complete.


If you feel I owe you any additional rent please visit Money Claim Online and submit a small claims application, I will of course be seeking costs if, or when, the judgment is found in my favour.

HappyMJ

Just move out on or before the last day of your tenancy and hand the keys back. It's polite to give notice that you're leaving but it's not required.

Your deposit is protected and you can claim it back if they attempt to withhold it for unpaid rent.

Anyway, if LL's selling in March doesn't the LL want the property back ASAP so they can sell quickly with vacant possession.

apjc33

Thanks for the quick responses. LL hasn't yet put the property on the market - they wanted us to stay on a month to month to help them while they sold, but we didn't fancy rolling on that basis and having to find somewhere later in the year.

In your opinion is that 12.4 term not valid at the end of the term then?

theartfullodger

Call me cynical but one hears of so many stories of landlords or agents-claiming-that-landlords are selling and tenant must leave: Tenant leaves, then bizarrely no sale, new tenants.

However, it may be true. Unless there is a very odd clause in your tenancy granting visit rights for prospective viewers you won't have to permit valuers, estate agents, photographers or prospective purchasers access to your home whilst you live there. Nothing to stop you agreeing to such visits for whatever you wish (£££, good reference, whatever..)

The above 2 posters are absolutely correct, no notice required to leave any time up to end of fixed term (you can leave today..) but liable for rent to end of fixed term. It may be considered polite to inform landlord when you are going if only for dropping off of keys and check-out inspections happening promptly.

However, there is a view that if there is a valid clause in the contract requiring tenant to give notice to leave at end of fixed term then, in theory, landlord could sue for breach of contract and any extra costs incurred (Don't think 12.4 does this): £5 to an agreed housing charity if anyone can find a case where this has happened. (Nah, make that £25).

Cheers, Artful, landlord btw...

Guest101

apjc33 wrote: »

Thanks for the quick responses. LL hasn't yet put the property on the market - they wanted us to stay on a month to month to help them while they sold, but we didn't fancy rolling on that basis and having to find somewhere later in the year.

In your opinion is that 12.4 term not valid at the end of the term then?

No, it's not valid for the purposes the agent says it is (they also know it's not valid i'm sure, and are just thinking if they get you onto periodic, they can actually charge you for 2 more months)

HouseBuyer77

Well your quote comes from here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/284440/oft356.pdf

(Office of fair trading guidance on unfair terms in tenancy agreements).

It's not legally binding (the court will ultimately decide it it was an unfair term as explained in the introduction) but if the OFT has the opinion it's unfair I think there's a good chance a court would too. Does anyone know of any prior cases in this area?

I'd send the agents a link to the OFT document and quote the relevant section and see what they say (Ask them why they disagree with the OFT guidance).

apjc33

The only term regarding notice is;

12.4 After six months from the date hereof, either party may determine this tenancy by serving the other party with no less than two months written notice to run in line with the tenancy commencement date.

It doesn't refer to this applying at the end of the fixed term. I'd assumed this was for ending a tenancy early (i.e. committed to 6 months, then 2 months notice). But surely they can't make me give 2 months notice now if it takes me over the end of the fixed term?

Guest101

apjc33 wrote: »

The only term regarding notice is;

12.4 After six months from the date hereof, either party may determine this tenancy by serving the other party with no less than two months written notice to run in line with the tenancy commencement date.

It doesn't refer to this applying at the end of the fixed term. I'd assumed this was for ending a tenancy early (i.e. committed to 6 months, then 2 months notice). But surely they can't make me give 2 months notice now if it takes me over the end of the fixed term?

No they cant.

apjc33

Thanks again!

So I've drafted this;

Thank you for the comprehensive email regarding check-out process.

With regards to our leaving date, we had been in discussions regarding renewal and were keen to proceed. However once we were made aware the terms would be changed significantly in a new tenancy agreement, we have re-considered. As such, we confirmed what our intentions are at the end of the tenancy fixed term period - which is to not renew or continue onto a periodic basis and to leave the property at the end of the agreed term, 6th March 2016.

There is no term in the contract related to notice for terminating the tenancy at it’s agreed end date and the advice we have received confirms there is no legal requirement for tenants to provide such notice. I've been directed to the OFT which has outlined such a term could be considered unfair and unenforceable;

LINK HERE (won't let me add link to this post)

3.78 A tenant is not required to give notice to bring the tenancy to an end at the end of the fixed term. That is because a fixed term agreement comes to an end at the end of the fixed term, and no periodic tenancy will arise if the tenant then leaves. We appreciate that landlords will want to ensure that their properties are not left empty between tenancies, but object to terms that impose a contractual obligation on the tenant to give notice in order for the tenancy to be terminated at the end of the fixed term.

We completely appreciate that the landlord will want to limit the time the property is empty and therefore we have provided as much notice as we could of our intentions - given the revised terms were only communicated to us last week this allows 7 weeks to arrange a new tenancy. Based on the above we will be leaving the property on 6th March 2016 and will not be liable for rent or utilities past that point as there is no tenancy agreement in place for the period 7th March 2016 onwards (fixed or periodic).

What do you guys think?

Pixie5740

Why use 1 word when 10 will do.

How about:

Dear Mr Landlord,

Thank you for the comprehensive email regarding check-out process.

We have decided that after our fixed term contract ends we do not wish to continue living in the property with a periodic tenancy. Therefore we shall vacate the property by the end of the fixed term, 6th March 2016.

Yours sincerely,

apjc33

You don't need to go quoting chapter and verse unless they dispute you can just leave at the end of the fixed term.