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gunner1981

Break Out Clause advice required ( assured shorthold)

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Evening all, I've searched the site, and can't find any threads querying my particular dilemma.. so thought i'd ask your thoughts on my

 

scenario, along with the wording in my assured shorthold tenancy agreement..

 

 

Info/ history

I currently rent my property from a building company. I have previously signed 3 tenancy agreements. I sign a new tenancy agreement every 6

 

months. My current 6 monthly tenancy officially ends on 27th March 2013.

 

Scenario

 

I want to end the tenancy early. After studying the tenancy agreement I observe a break out clause. I interpret the break out clause in my way

 

and as such , with 2 months to run on the tenancy ,I have given my landlord notice in writing, and asked how I should pay the £200 break out

 

fee..

 

Landlord writes back saying that my tenancy will run until the official end date, and that I should meet the lettings manager on the 27th March

 

2013 and hand over keys. Landlord states that I am still liable for all rental payments, and all house bills until they find new tenants (

 

or until 27th March ). Landlord states I should arrange a departure inspection around the time ( fair enough ). There is no mention of the break

 

out clause in the letter sent by the landlord.

 

Tenancy agreement wording

 

Here is the wording concerning ending the tenancy:

 

2.5 ending the tenancy

 

2.5.1 If the tenant intends to vacate at the end of the fixed term, or at any later date, he agrees to give the landlord at least one month's

 

prior notice in writing.

 

2.5.2 while the tenancy is periodic the one month's written notice must expire the day before a rent due date.

 

2.5.3 If, in exceptional circumstances, the tenant is allowed by the landlord to end the tenancy prior to the expiry date set by clauses 2.51

 

and 2.52, then there will be an early termination charge of £200.

 

 

Can anyone else interpret the 2.5.3 clause above, and let me know your thoughts... I am wondering why have the break out clause in , If the

 

landlord is forcing me to stay and pay rent and bills.

 

The reason for wanting to breakout is not under dispute, moreover there are no definitions of exceptional circumstances in the agreement- this

 

leads me to think that the lettings company can manipulate or put their own spin on what they deem as exceptional.

 

 

Many Thanks in advance

 

 

GG

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What you have quoted above is not a break clause. It's about ending the tenancy once it is periodic, i.e. after 27th March. The wording 'if in exceptional circumstances' allows the landlord to decide whether or not he'll allow you to get out of the tenancy earlier. It doesn't give you a 'right'.

 

2.5.1 is the landlord's request to be informed if you want to end the tenancy by the end of the fixed period, so he expects a month's notice in Feb to inform that you will leave by 27th Mar.

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2.5.3 is effectively mutual surrender terms during fixed term. The key word is mutual. You may offer to surrender T bu LL would have to agree and both sign a Deed of Surrender ideally. LL can demand any payment, up to full rent for remainder of fixed term (27th Mar). You have no right to demand it, only negotiate terms.

Neither LL nor LA are manipulating you as there are no exeptional circumstances to consider. They can either agree or reject your offer of early surrender. LL seems willing to consider early surrender, provided you remain liable for rent & property until new Ts are found. Legal & quite generous. He could have asked for cash equiv of rent to 27 Mar in lump sum.

What 'exceptional' circumstances do you think you have?

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Thanks for the replies..

 

The landlord is the building company which built the estate, they retained a few houses for rental. They do not use a letting agent, they employ staff to manage the lettings side of things.

 

My exceptional circumstances are not in dispute, and I would prefer not to mention them on here..]

 

I'm quite a rationale individual, and see the situation from both sides, more so with your input- which is appreciated.

 

Hopefully the prospective tenants who are looking around on Saturday will take the property, and will lessen the potential financial hit that I may face in the worse case scenario.

 

I will attempt to reason with the landlord.

 

Cheers

 

GG

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