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Remus2004
Remus2004, Barrister
Category: Property Law
Satisfied Customers: 70637
Experience:  Over 5 years in practice.
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We are letting a 2 bed flat in London through an agent. We

Customer Question

We are letting a 2 bed flat in London through an agent. We let it out for a 12 month assured shorthold tenancy which went without a hitch. The tenants have moved out of London and we are reletting. The prospective tenants are asking for a 36 month tenancy with a 6 month break clause (as they are from abroad and are not 100% sure that they will settle in UK). After the 6 month break clause they propose a 2 month notice period at any time.
We are wanting to propose a 12 month break clause followed by a 2 month break clause at any time. Is this a safe and wise proposal from a legal perspective?
Submitted: 3 years ago.
Category: Property Law
Expert:  Remus2004 replied 3 years ago.
Thank you for your question. My name is Jo and I will try to help with this.

It depends what you want to achieve. In truth, all these things bind you rather than the tenant. Even if the tenant gives notice completely unlawfully you will still only get one to two months rent because you are under a duty to mitigate your loss by seeking another.

A 12 month break clause would allow you to break at the 12 month point whereas a 6 month break clause would allow you to break at the 6 month.

Both have advantages. Your proposal would allow you flexibility. Theirs would allow you more security although since it cannot be enforced you might think its not worth having.

The advantage of a six month review would be that you could get rid of them earlier if you found them to be unacceptable. That would be safer but they may not agree.

You can certainly have ASTs that bind you for 12 months and then allow escape by 2 months notice thereafter.

Can I clarify anything for you?

Jo
Customer: replied 3 years ago.

Thank you.


 


"You can certainly have ASTs that bind you for 12 months and then allow escape by 2 months notice thereafter'


 


This is what I wanted to clarify.


 


Regards

Expert:  Remus2004 replied 3 years ago.
You can have an assured shorthold tenancy for 12 months which can thereafter be terminated by 2 months notice.