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How do break clauses work?

10 replies

woldywoldy · 19/07/2023 11:39

I understand the general use of a break clause and how it is used. For example, a 6 month break clause would be notified of its use on month 4 in order to move out on month 6.

We are in the process of negotiating a renewed tenancy for our current property. We want a break clause, but we want it to be from our point of view only. That is to say, we want an 18 month contract with a break clause at month 12 but we want to be the only party able to enact it. So the landlord is tied in for definite for 18 months, but we can leave at month 12 if we wish.

Is this a thing?

OP posts:
Thistooshallpsss · 19/07/2023 11:40

There’s no advantage to your landlord agreeing to this so I can’t see why they would do.

Ohmylovejune · 19/07/2023 11:44

Are you in an area where rentals are so easy to find that you can dictate what you want to your landlord?

woldywoldy · 19/07/2023 11:49

We are agreeing to an increased rent, where rents have actually fallen. I think we are fairly good tenants. We have already been here for 12 months with no issues.

The benefit for the landlord will be to have us for the 12 months they requested, but possibly 18 months.

OP posts:
Instahome2 · 19/07/2023 11:51

As a (mostly) commercial landlord, it's not something we would ever agree to. Having a termination clause for a landlord is pretty important.

Instahome2 · 19/07/2023 11:53

Would there be a rent review after 12months or would your rent remain the same for 18 months?

KievLoverTwo · 19/07/2023 12:11

No. And even if you were able to wrangle it, it wouldn't necessarily stand up in court anyway. Rental agreements need to be equally fair to both parties and you would be putting your LL at a disadvantage.

Added to that, it's likely that the Renters Reform Bill will get through parliament within that time frame, which means your LL would then only be able to give you notice if they a) wanted to move back in or b) sell it.

No LL worth their salt would agree to this, and, tbh, they're going to think you're pretty unreasonable even suggesting it. I would recommend that you do not.

woldywoldy · 19/07/2023 12:23

Are you sure that's how the unfair terms act applies? A commercial landlord like we have will have sufficient professional knowledge and understanding that they would know what they were agreeing to.

Anyways, thank you for the other advice! We will agree to a 12 month again, even though ideally we would have gone onto a rolling contract.

OP posts:
KievLoverTwo · 19/07/2023 12:33

woldywoldy · 19/07/2023 12:23

Are you sure that's how the unfair terms act applies? A commercial landlord like we have will have sufficient professional knowledge and understanding that they would know what they were agreeing to.

Anyways, thank you for the other advice! We will agree to a 12 month again, even though ideally we would have gone onto a rolling contract.

Well, sort of. I'm not a lawyer but I spent a bit of time looking at it in the past. It would be unfair for the LL not to be able review the rent at month 12. It puts you at an advantage. If your only justification is 'I don't want to pay more rent' but the landlord counters with 'I would like to review the rent annually as has been precedence since the beginning of time' then their reasoning seems more fair.

I appreciate that you've already agreed to more rent than it's probably worth, but you've done that voluntarily.

anniegun · 19/07/2023 12:34

Just ask for a tenant only break clause in the contract. It is legally simple. Up to the landlord whether they agree to it

KievLoverTwo · 19/07/2023 12:35

Actually, what you need to ask for is a 2 year lease with a 1 year break clause.

Don't even mention the rent. Then see what they write into the draft agreement about rent reviews.

I had this exact lease and the rent was due to be reviewed at the end of year 2. You never know, you might get lucky.

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