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Topic: Invoking a break clause in Assured Shorthold tenancy agreement  (Read 3465 times)

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Has anyone had to invoke a break clause that was included in their assured shorthold tenancy agreement?

I'm essentially being kicked out of my flat (Backstory below), and am thinking carefully about my options. 
I have looked into the break clause in my contract, but want to just check on the wording -- Does anyone here have a good handle on interpreting these?  I think I need a little help in understanding;  The exact text is follows:

Quote
Mutual Break Clause
Any time after 6 months of the initial fixed term of this tenancy, the Tenant may invoke this break clause by providing a minimum of one month's written notice to the Landlord (such notice to expire on the last day of a rental period of the tenancy).

Any time after 6 months of the initial fixed term of this tenancy, the Landlord may invoke this break clause by providing a minimum of one month's written notice to the Tenant (such notice to expire on the last day of a rental period of the tenancy).

At the end of such notice the tenancy shall end and all obligations and responsibilities shall cease; subject nevertheless to any claim by either party against the other in respect of any breach of any of the terms and conditions of the agreement.

My tenancy started on: 13 May 2017, and is due to end on: 12 May 2018.
What I don't quite understand is the phrase in brackets "(such notice to expire on the last day of a rental period of the tenancy)"

What is considered the "rental period" - is this the full 12 months, or the 1 month intervals at which I pay rent?

For example, if I invoke the break clause on Friday, 16 Mar 2018, by submitting notice in writing (email & by special delivery/signed for post), does the break clause wording allow me to move out on/before 15 Apr 2018? Or because I will have entered the "April" month (which starts on 13 April), does the wording in the break clause mean that I'm liable for that final full month of rent (ie: from 13 Apr - 12 May)?

I can't afford to have too big an overlap between properties, but viewed a brilliant place this evening at a great price, and can't necessarily afford to lose it. 
I just really don't want find myself in the situation where I give 1 months notice, move out, and then find out I'm liable for the final month of rent, and subsequently have to battle to get my deposit back.



A little bit of backstory:

After failing to reach an agreeable increase in rent at the end of my 12-month fixed term, I have been served notice that I must vacate the property in 2 months, which does fall on exactly the same day as the end of my original agreement.

Long story short - the letting agent has been very aggressive, relentless, and the landlord is just plain greedy, requesting an increase ~250-300pcm more/month than other similar properties on the market. (I'm following this up as a separate matter with the Citizen's Advice Bureau as there are laws in place to protect tenants against unfair and unrealistic rent.)

We've been going back and forth via email for 2 weeks (a day or two between responses); and I've been polite, proactive, and asked for clarifications throughout ....They were even beginning to introduce made up "renewal fees" that they would agree to waive as a "gesture of goodwill" if I agreed to the increased rental rate.  In response to my request to clarification as to where this renewal fee was documented, I was served notice to vacate instead.  ???

I'll gladly take this letting agent to court* if the CAB solicitor advises that I'm in the right and have legal justification to do so-- they've really started to pull some dodgy business practices, and I simply don't agree with or tolerate that sort of behaviour. 

*I'd do it in order to:
A-prove a point that dodgy business practices will get you nowhere fast;
B-win the overall war I seem to have found myself in (though I seem to have lost the original battle of wanting to stay in my current flat); and
C-to help protect future victims/tenants of dodgy landlords and letting agents.


**edited to correct typo in contract wording :)
« Last Edit: March 14, 2018, 03:50:09 PM by PickledSakura »
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Re: Invoking a break clause in Assured Shorthold tenancy agreement
« Reply #1 on: March 14, 2018, 11:21:50 AM »
Why not ask the CAB solicitor or even the letting agent?  I can't see how it would hurt the letting agent to spell out when you can  invoke the Break clause.

Good on you for fighting the fight against evil estate agents but I can't see anything that anyone has done to you yet that would warrant a trip to court.  The landlord wants to raise the rent and you don't want to pay it so they have invoked the break clause, giving you more notice than actually required. You would like to invoke the Break clause a little earlier, which may actually suit them if they can start renting earlier at a higher rate.  No conflict so far that I can see.  The landlord might be greedy, but you can't sue somebody for that.


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Re: Invoking a break clause in Assured Shorthold tenancy agreement
« Reply #2 on: March 14, 2018, 11:44:38 AM »
The meeting with the CAB solicitor isn't until 24th March, and properties in London can go within hours, so am just a little stressed/concerned I'll miss out.

I think the best thing to do may be just to speak to them about it.  But it's all just a bit too sketchy for my liking...
- My other concerns here though are that in the time I've been at the property (10 months), they've changed their email address, disconnected their phone number, and switched banks (all without advance notice)...So I'm not actually sure if they're even at the address listed on my tenancy agreement anymore (it's a listed as Suite in what looks like a residential building).
- When I contacted them to notify that I had no water one morning, they said that their maintenance person was on holiday for a week, and would look into it then.
- Without informing me in advance, they told the flat below me to drop their keys through my door to check out; thus making me responsible to return the keys from the other tenants. It was then very difficult to arrange the handover at an agreed time.

Anyhow, I don't necessarily want the conversation about invoking the Break Clause in writing in the first instance, as it's easier to discuss verbally and follow up in writing, but don't have a phone number to call, or an actual office that I can attend.  But it seems email might be my best (only) option.
Thanks for your response, jimboocz
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Re: Invoking a break clause in Assured Shorthold tenancy agreement
« Reply #3 on: March 14, 2018, 12:02:03 PM »
Yuck.

Good luck with the other property. I hope it all works out!  :)


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Re: Invoking a break clause in Assured Shorthold tenancy agreement
« Reply #4 on: March 14, 2018, 12:36:36 PM »
Has anyone had to invoke a break clause that was included in their assured shorthold tenancy agreement?

TBH, I would ask about this on the landlordzone forums as they keep up to date with the laws and the bad landlords soon get corrected by the good landlords on there.
https://forums.landlordzone.co.uk/

I don't have a lot of faith in the CAB for housing matters, having seen a tenant neighbour get some very bad advice from them years ago on holding deposits, which the court then proved the CAB and letting agents wrong. Thankfuly, in the last few years the law has been changed on that to make that quite clear to letting agents/bad landlords. Anyone can set themselves up as a letting agent.


My tenancy started on: 13 May 2017, and is due to end on: 12 May 2018.
What I don't quite understand is the phrase in brackets "(such notice to expire on the last day of a rental period of the tenancy)"

My son did invoke a 6 month break clause (twice) but that was for a fixed 12 month contract with just one chance to end that at 6 months. The rental period is (or was) from the monthly start date of he contract (not the date you pay the rent) and then applies by the month once the fixed term is finished. The landlordzone posters will know the latest changes as I haven't kept up to date with the housing laws as my children now have their own houses.

Any time after 6 months of the initial fixed term of this tenancy, the Landlord may invoke this break clause by providing a minimum of one month's written notice to the Landlord (such notice to expire on the last day of a rental period of the tenancy).

Is that your typo? Or a typo in your contract?


« Last Edit: March 14, 2018, 02:35:08 PM by Sirius »


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Re: Invoking a break clause in Assured Shorthold tenancy agreement
« Reply #5 on: March 14, 2018, 12:41:25 PM »
If the letting agents are dodgy and you aren't even sure where they are, I would want to be extra careful about any deposit they are holding. 


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Re: Invoking a break clause in Assured Shorthold tenancy agreement
« Reply #6 on: March 14, 2018, 01:42:30 PM »
(I'm following this up as a separate matter with the Citizen's Advice Bureau as there are laws in place to protect tenants against unfair and unrealistic rent.)

Is there? When the fixed comes to end? It's supply and demand and gone are the low rents of the 90s and before.

A lot of landlords are worried about Brexit causing falling rents and house prices and this was featured a lot on the landlord sites before the UK voted on leaving the EU. At that time, Switzerland had already told the EU that they will no longer accept the EU's uncontrolled immigration numbers of Free Movement to their country (EEA citizens and non-EEA citizens) because of the pressure these high numbers put on their housing, jobs, depressing wages, schools, their healthcare system, welfare system, roads, services etc. Then they withdrew their long standing application to join the EU as a full member.

....They were even beginning to introduce made up "renewal fees" that they would agree to waive as a "gesture of goodwill"

There is a law coming in to stop those renewal contract fees for tenants in England. I think Scotland might already have that law?

Here is that change
https://www.gov.uk/government/news/government-action-to-ban-letting-agent-fees
« Last Edit: March 14, 2018, 02:08:39 PM by Sirius »


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Re: Invoking a break clause in Assured Shorthold tenancy agreement
« Reply #7 on: March 14, 2018, 03:47:09 PM »
Is there? When the fixed comes to end? It's supply and demand and gone are the low rents of the 90s and before.

A lot of landlords are worried about Brexit causing falling rents and house prices and this was featured a lot on the landlord sites before the UK voted on leaving the EU. At that time, Switzerland had already told the EU that they will no longer accept the EU's uncontrolled immigration numbers of Free Movement to their country (EEA citizens and non-EEA citizens) because of the pressure these high numbers put on their housing, jobs, depressing wages, schools, their healthcare system, welfare system, roads, services etc. Then they withdrew their long standing application to join the EU as a full member.

There is a law coming in to stop those renewal contract fees for tenants in England. I think Scotland might already have that law?

Here is that change
https://www.gov.uk/government/news/government-action-to-ban-letting-agent-fees
You can actually challenge a rent increase and potentially get your rent reduced if the reviewing tribunal believes it is beyond fair market value (so landlords can't use ridiculous rent hikes just to push tenants out). Though you're right that this won't protect you from the changing market.

I imagine this is what the OP is looking at: https://www.citizensadvice.org.uk/housing/renting-privately/during-your-tenancy/challenging-a-rent-increase/

There don't seem to be many tenant protections under UK law, but this is one of them. As a longtime renter in the US, I find the UK rental laws pretty shocking...

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Re: Invoking a break clause in Assured Shorthold tenancy agreement
« Reply #8 on: March 14, 2018, 03:56:47 PM »
You can actually challenge a rent increase and potentially get your rent reduced if the reviewing tribunal believes it is beyond fair market value (so landlords can't use ridiculous rent hikes just to push tenants out). Though you're right that this won't protect you from the changing market.

I imagine this is what the OP is looking at: https://www.citizensadvice.org.uk/housing/renting-privately/during-your-tenancy/challenging-a-rent-increase/

There don't seem to be many tenant protections under UK law, but this is one of them. As a longtime renter in the US, I find the UK rental laws pretty shocking...

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The landlords can just issue a "no-fault" Section 21 instead of a rent rise Section 13, if they want the tenant out and then they can avoid all that and get more rent from another tenant.  The protection used to be that there were lots of properties to chose from.

The bringing in of LHA in the early 2000s raised rents.

However, the rent rises over the last two decades has been horrific. Supply and demand. Gone are the days of teenagers working and then moving into rentals with their work friends.
« Last Edit: March 14, 2018, 04:06:38 PM by Sirius »


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Re: Invoking a break clause in Assured Shorthold tenancy agreement
« Reply #9 on: March 14, 2018, 04:36:27 PM »
The landlords can just issue a "no-fault" Section 21 instead of a rent rise Section 13, if they want the tenant out and then they can avoid all that and get more rent from another tenant.  The protection used to be that there were lots of properties to chose from.

So this is some of the stuff that I'm also confused about, because with the Section 21, I've concluded that what they've issued me would be invalid, because I never received a gas safety certificate, energy performance certificate or a ‘How to rent’ guide.  Also, the letter they sent does not have all the information as included on the Form 6a; they addressed it to "Dear Tenant", and signed it as "XXX Team" with no name, contact address, or phone number.   It's just a bit sketchy.

But sure, fair, I can't remain in a property if my tenancy agreement ends; and will do what it takes to move out beforehand, I just want to understand whether I'm liable to pay all the way until 12 May 2018, if I find a place and move out say, on April 13th.

For what it's worth, my deposit is in a scheme rather than held by them.

And also, having spoken to three separate agencies today, rents in my area have actually fallen over the past 6 months, so it seems demand is actually lower than the current supply.  Hopefully this will at least work in my favour moving forward!
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Re: Invoking a break clause in Assured Shorthold tenancy agreement
« Reply #10 on: March 14, 2018, 07:25:16 PM »
We've invoked the break clause on most properties we've lived in.  We normally sign for the 1st year, 2nd year, and 3rd year, but end up wanting to leave after 2.5 years.  We have a bit of a track record.  On exactly the 6 month date we submit to leave in a month's time as per contract.

It's always been easy.  1-2 sentences on a sheet of paper and our signatures at the bottom delivered by hand to the estate agent's office either during opening hours or through their letter box.  We follow it up with the exact same thing emailed to them on the same day.

What are your concerns about using the break clause?  You're within your rights.  It'd just mean that you leave a couple weeks earlier than you've already been given notice for.



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Re: Invoking a break clause in Assured Shorthold tenancy agreement
« Reply #11 on: March 14, 2018, 07:52:00 PM »
The laws change all the time either through parliament (statutory) or through the courts (common).


I don't keep up to date with the Housing law changes anymore but the landlordzone forums will. They will tell you what the latest laws are.


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Re: Invoking a break clause in Assured Shorthold tenancy agreement
« Reply #12 on: March 14, 2018, 10:01:47 PM »
What are your concerns about using the break clause?  You're within your rights.  It'd just mean that you leave a couple weeks earlier than you've already been given notice for.

Larissa, It's not that I'm concerned about using the break clause, it's the specific language in it, which makes me question whether I'd be liable to pay through to the end of the contract, as I cannot afford to pay rent on two places for the overlapping period. So I just need to understand what the part that says "(such notice to expire on the last day of a rental period of the tenancy)" means in practice.

I just anticipate the agency to be difficult and not-budge on anything; the way it reads to me suggests that I'd be liable to pay for the full month of 13 April- 12May, even if I move out on 16 April (for example)....so I'll still ask the question, but don't think they'll be particularly accommodating.

Based on Sirius's advice, I've also posted on the Landlordzone forum, to see if they can help advise. 
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Re: Invoking a break clause in Assured Shorthold tenancy agreement
« Reply #13 on: March 15, 2018, 11:38:39 AM »
It seems to me that the crux of your question is this :

"What is considered the "rental period" - is this the full 12 months, or the 1 month intervals at which I pay rent"

As it relates to this :
"(such notice to expire on the last day of a rental period of the tenancy)"

It seems crazy that if you want to invoke the Break clause you have to pay the entire rest of the year.  That might be okay for a mobile phone contract but it's absolutely nuts for a rental.  I think that interpretation would be so unreasonable that it would be unenforceable but that's just my opinion. 

Also, the words "A rental period of the tenancy " supports the idea that the period is a month, not a year.  If it were a year, then it would say "THE" rental period. 

HTH






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