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Break Clause Interpretation

AndyW79
AndyW79 Posts: 65 Forumite
Fifth Anniversary 10 Posts Name Dropper
edited 28 May 2020 at 10:29AM in House buying, renting & selling
Hi,
We signed an AST two year rent contract from the 9th of July of 2019 to the 8th of July of 2021 and the break clause states:
"The Landlord may end the Term by giving to the Tenant not less than two calendar months’ prior notice in writing , such notice not to expire earlier than 8th July 2021" 
Does the "expire" mean: 1) that notice can be given at any moment in time or 2) they would have to wait until two months before the end of tenancy on the 8th of July of 2021 (eg: give notice on the 8th of May of 2021?)
Thanks,
Andy



«13

Comments

  • Comms69
    Comms69 Posts: 14,229 Forumite
    10,000 Posts Third Anniversary Name Dropper
    Expire would mean notice served 2 month prior to july (may); in any case a landlord cannot end a tenancy so it's irrelevant. It's just standard s.21 notice. 
  • princeofpounds
    princeofpounds Posts: 10,396 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    The notice can be served at any time, even the day after the tenancy start. But it cannot stipulate an earlier date then 8th July 2021. The 'expiry' means the expiry of the notice period, i.e. when the landlord has asked for you to leave.

    So in this case, it's not really a 'break clause' in the normal use of the phrase, as that is normally referring to a clause that enables termination of the tenancy before the end of the fixed term. But it does explain how the landlord may end the tenancy through the Section 21 route. 
  • theartfullodger
    theartfullodger Posts: 15,854 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The only definite way to establish meaning is in court.

    Try to avoid this by negotiation
  • AndyW79
    AndyW79 Posts: 65 Forumite
    Fifth Anniversary 10 Posts Name Dropper
    The notice can be served at any time, even the day after the tenancy start. But it cannot stipulate an earlier date then 8th July 2021. The 'expiry' means the expiry of the notice period, i.e. when the landlord has asked for you to leave.

    So in this case, it's not really a 'break clause' in the normal use of the phrase, as that is normally referring to a clause that enables termination of the tenancy before the end of the fixed term. But it does explain how the landlord may end the tenancy through the Section 21 route. 
    Thanks for your response, forgot to say that there is 12 month break clause (no more wording around it just that).
    So the question is  when can the landlord kick us out. Form wat you are saying It seems that he can only do it until the 8th July of next year or  can the landlord kick us out whenever he wants giving just two months notice? or only at the 12th month break clause?
    Sorry for my ignorance...
    Thanks Again,
    Andy
  • saajan_12
    saajan_12 Posts: 5,425 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    AndyW79 said:
    Hi,
    We signed an AST two year rent contract from the 9th of July of 2019 to the 8th of July of 2021 and the break clause states:
    "The Landlord may end the Term by giving to the Tenant not less than two calendar months’ prior notice in writing , such notice not to expire earlier than 8th July 2021" 
    Does the "expire" mean: 1) that notice can be given at any moment in time or 2) they would have to wait until two months before the end of tenancy on the 8th of July of 2021 (eg: give notice on the 8th of May of 2021?)
    Thanks,
    Andy

    They can physically give you the notice any time, even tomorrow, but
    a) you must have at least 2 months notice before the "end date"; and
    b) the "end date" must be 8 July 21 or later.

    So serving the notice earlier is legally no different to serving in May 2021.. you can't be asked to leave earlier (unless you mutually agree) so its just a matter of convenience.  

    Note the expiry date of the notice or the " end date" is the date they are requesting you leave by, but legally they can't end the tenancy, so after that date they can go to court to get a reposession order, and when that ends you should leave. 
  • AndyW79
    AndyW79 Posts: 65 Forumite
    Fifth Anniversary 10 Posts Name Dropper
    Thanks Ssayan_12,

    The problem is that there is a mutual 12 month break clause (worded in one sentence with no dates), so potentially they could end at 12 months which would be the on 8th of July of of 2020 but the break clause in the contract states the 2021 date: 

    "The Landlord may end the Term by giving to the Tenant not less than two calendar months’ prior notice in writing , such notice not to expire earlier than 8th July 2021" 

    So its not clear which is prevalent? The wording of the break clause which says clearly 8th of July of 2021 or the "mutual" 12 month break clause.

    Thanks,
    Andy

  • Comms69
    Comms69 Posts: 14,229 Forumite
    10,000 Posts Third Anniversary Name Dropper
    AndyW79 said:
    The notice can be served at any time, even the day after the tenancy start. But it cannot stipulate an earlier date then 8th July 2021. The 'expiry' means the expiry of the notice period, i.e. when the landlord has asked for you to leave.

    So in this case, it's not really a 'break clause' in the normal use of the phrase, as that is normally referring to a clause that enables termination of the tenancy before the end of the fixed term. But it does explain how the landlord may end the tenancy through the Section 21 route. 
    Thanks for your response, forgot to say that there is 12 month break clause (no more wording around it just that).
    So the question is  when can the landlord kick us out. Form wat you are saying It seems that he can only do it until the 8th July of next year or  can the landlord kick us out whenever he wants giving just two months notice? or only at the 12th month break clause?
    Sorry for my ignorance...
    Thanks Again,
    Andy
    at some point in 2021 is when they can literally kick you out.
  • saajan_12
    saajan_12 Posts: 5,425 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    AndyW79 said:
    Thanks Ssayan_12,

    The problem is that there is a mutual 12 month break clause (worded in one sentence with no dates), so potentially they could end at 12 months which would be the on 8th of July of of 2020 
    What's the one sentence (verbatim) and where is this written? eg which section of the tenancy agreement / in other communication?

    Also what is your preference - do you want to leave earlier, or stay longer?
  • greatcrested
    greatcrested Posts: 5,925 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Have I missed something?
    There is no 12 month Break Clause quoted.
    The so-called 'Break Clause' you quote is not in fact a Break Clause since it can only be activated to take effect on the final day of the fixed term.
  • AndyW79
    AndyW79 Posts: 65 Forumite
    Fifth Anniversary 10 Posts Name Dropper
    saajan_12 said:
    AndyW79 said:
    Thanks Ssayan_12,

    The problem is that there is a mutual 12 month break clause (worded in one sentence with no dates), so potentially they could end at 12 months which would be the on 8th of July of of 2020 
    What's the one sentence (verbatim) and where is this written? eg which section of the tenancy agreement / in other communication?

    Also what is your preference - do you want to leave earlier, or stay longer?
    Thanks ssajan,
    Its in the summary of the agreement in a row of a table: Break Clause :  Yes – Mutual 12-month break clause and we want to stay the two years we agreed.
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