Break Clauses in Tenancy Agreements: How Do They Work With Notices?

Break Clauses in Tenancy Agreements: How Do They Work With Notices?

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A 'break clause' is a term in a fixed-term tenancy agreement allowing either the landlord or tenant (or both) to end the tenancy early, before the fixed term expires, under specific conditions.

Using a Landlord Break Clause for Possession:

  1. Check Wording Carefully: The clause must be clearly written, stating when it can be activated (e.g., "not before 6 months") and how much notice is required (this notice period is separate from statutory notice periods).
  2. Serve Notice as per Clause: You must serve a written notice strictly following the requirements of the break clause itself (e.g., "at least two months' written notice").
  3. Serve Statutory Notice (Usually S21): In addition to the break clause notice, you usually also need to serve the relevant statutory notice (typically a Section 21 notice in England/Wales, giving at least 2 months' notice via Form 6A).
  4. Timing: The statutory notice (e.g., S21) generally cannot expire earlier than the date the tenancy ends according to the break clause notice.

Key Points:

  • Break clauses must be exercised precisely according to their terms. Ambiguity often favours the tenant.
  • Serving only a notice under the break clause is usually insufficient; the statutory notice (S21) is typically also required for court possession purposes if the tenant doesn't leave.
  • Compliance rules (deposit protection etc.) still apply for the statutory notice.

Break clauses offer flexibility but require careful execution alongside standard notice procedures.