When can I terminate this lease?

mrsunnybunny

I have a 18 month lease with a 12 months break clause. Due to moving, I will need to terminate this lease soon. However, the wording in the contract is really ambiguous and I don't really understand when I can actually cancel. Ideally, I would like to terminate around the 10th of October, but 31st of September would also work.


The term is defined as follows: For the term of 18 months commencing on 30th August 2015 until noon on 28th February 2017


The break clause is defined as follows: The Tenant may determine this tenancy on or after the twelfth month of this tenancy by giving the Landlord or the Landlord’s Agent not less than two (2) months’ notice in writing on the rent due date to that effect, the earliest such date for giving notice being on or after the twelfth month of occupancy


The first issue is that the wording says that I can "determine" (should read terminate?) on or after the 12th month by giving 2 months notice. However, it also says that the earliest such date is 12 month. I assume "such date" refers to the termination date, and not the date at which notice is handed in, but this is unclear. In case of the former, this would imply that I cannot hand in notice until 30 August which is too late.


The second issue I have is that it is not clear whether I can give notice for any date (eg the 7th), or whether this runs on a monthly basis. In case of the latter, would it be the 30th, 28th, or last day of month (see term above)?


The third issue is that it is not clear whether I have to give exactly 2 months notice, or at least 2 months notice. Eg, it is not clear to me whether I could hand in the notice 2.5 months prior.


Any help would be much appreciated!

davidmcn

When is the "rent due date"?

And is there any clause in the lease about the method for serving notices?

stator

determine does mean end

It's badly worded but does say you can't give notice until 12 months after the start, so the minimum tenancy length would be 14 months.

I can't see any clause that stops you from ending the tenancy part way through a period, is there something else in the agreement?

Guest101

determine is the correct wording (it means terminate)


The clause is fundamentally flawed though, You cannot end the tenancy on the 12th month if you can only give notice (2 months) on the 12th month.


The notice, in either case, must be served ON the rent due date. So it's 2,3,4,5 months, but served on that date.


I would suggest the intention of the term is to create a break clause effective on the 12th month, so notice can be served any month upto the 10th month, to end on the 12th month.

Miss_Samantha

mrsunnybunny wrote: »

The first issue is that the wording says that I can "determine" (should read terminate?) on or after the 12th month by giving 2 months notice.

'Determine' is the correct term and does mean 'terminate'.

mrsunnybunny wrote: »

However, it also says that the earliest such date is 12 month. I assume "such date" refers to the termination date, and not the date at which notice is handed in, but this is unclear.

It says "such date for giving notice", which is clear.

mrsunnybunny wrote: »

The second issue I have is that it is not clear whether I can give notice for any date (eg the 7th), or whether this runs on a monthly basis.

mrsunnybunny wrote: »

The third issue is that it is not clear whether I have to give exactly 2 months notice, or at least 2 months notice.

It just says "no less than 2 months notice" so the expiry date may be any date and, obviously, the notice period does not have to be exactly 2 months.
On the other hand you must give notice on a rent due date.

mrsunnybunny

davidmcn wrote: »

When is the "rent due date"?

And is there any clause in the lease about the method for serving notices?

Rent due date is the 30th.

No clause about method for serving notices. It's a really badly written contract..

Guest101 wrote: »

determine is the correct wording (it means terminate)


The clause is fundamentally flawed though, You cannot end the tenancy on the 12th month if you can only give notice (2 months) on the 12th month.


The notice, in either case, must be served ON the rent due date. So it's 2,3,4,5 months, but served on that date.


I would suggest the intention of the term is to create a break clause effective on the 12th month, so notice can be served any month upto the 10th month, to end on the 12th month.

I agree, that is the intention so hopefully they see it the same way.


Based on all the replies, it seems that:

1. I must give notice on the 30th
2. I can give notice for any date, provided it is at least 2 months (eg I can give notice for 2 months and 2 weeks)
3. I MAY be able to give notice on the 30th of this month (July) but they may come back and argue that the earliest I can hand in notice is the 30th of August


Now of course the contract makes no reference to how rental payments should be pro-rated where there isn't a full month. The contract states that "Rental payments are £X per calendar month in advance by equal payments by the 30th of each calendar month".


If I were to terminate effective 7 October, would they have to pro-rate the payment?

Miss_Samantha

mrsunnybunny wrote: »

3. I MAY be able to give notice on the 30th of this month (July) but they may come back and argue that the earliest I can hand in notice is the 30th of August

Although not the best drafting, it is clear that the earliest you can give notice is at the 12 months mark.

mrsunnybunny wrote: »

If I were to terminate effective 7 October, would they have to pro-rate the payment?

They do not have to pro-rate, whilst you'll still have to pay the full month rent.

mrsunnybunny

Miss_Samantha wrote: »

Although not the best drafting, it is clear that the earliest you can give notice is at the 12 months mark.

Yet it also states that the contract CAN be determined on the 12th month of the tenancy. This can only be achieved by giving notice at the end of months 10.

Tenancy also is not a defined term. The agreement was actually signed on 27 July, ie one month before the start of occupancy so there is an argument that the 12 month could have started from such date.

Miss_Samantha wrote: »

They do not have to pro-rate, whilst you'll still have to pay the full month rent.

So no protection for tenants anywhere in the regulation prohibiting exactly this?

Guest101

Miss_Samantha wrote: »

Although not the best drafting, it is clear that the earliest you can give notice is at the 12 months mark.
- Equally it's clear the tenant can terminate the tenancy on or after the 12th month. So clear as mud really. The intention though I think, and certainly the agreement verbally, was to be possible to end on the 12th month.


They do not have to pro-rate, whilst you'll still have to pay the full month rent.

Agreed they do not have to discount unused time, but if the OP paid pro-rata they may decide not to chase it

AdrianC

mrsunnybunny wrote: »

3. I MAY be able to give notice on the 30th of this month (July) but they may come back and argue that the earliest I can hand in notice is the 30th of August

The contract wording is unequivocal. The earliest date you can give notice is 30th August 2016, to leave on 30th October 2016.

Now of course the contract makes no reference to how rental payments should be pro-rated where there isn't a full month.

Because there's no pro-rata in the contract at all. You pay rent monthly. For full months.

The contract states that "Rental payments are £X per calendar month in advance by equal payments by the 30th of each calendar month".

See?

If I were to terminate effective 7 October, would they have to pro-rate the payment?

You cannot terminate effective 7th October. The earliest you can terminate is 30th October, if they have your notice on or by 30th August. If you miss 30th August, even if you hand the notice in on 31st August, then you are still bound by the tenancy until 30th November, and you owe a full month's rent for November.

Guest101

mrsunnybunny wrote: »

Yet it also states that the contract CAN be determined on the 12th month of the tenancy. This can only be achieved by giving notice at the end of months 10.

Tenancy also is not a defined term. The agreement was actually signed on 27 July, ie one month before the start of occupancy so there is an argument that the 12 month could have started from such date.



So no protection for tenants anywhere in the regulation prohibiting exactly this?

A tenancy doesn't start until the tenant has legal possession of the property.


No protection, as this is a voluntary clause. It's not forced upon you.