Ending a tenancy agreement early
When you can end a tenancy agreement early as a tenant? When can you end a tenancy agreement early in the fixed term?
There are a wide range of circumstances where you might wish to end a tenancy agreement early for those renting or letting in the UK. If you are a landlord or a tenant it is important to understand your legal obligations when attempting to end an agreement early to ensure you do not encounter legal problems.
As a Tenant
Many tenancy agreements start with a fixed term, usually 3, 6 or 12 months, with the last day
of your tenancy being clearly stated on the tenancy contract. You will have a fixed term
tenancy if your contract has an end date that has not yet passed. If your agreement has no
end date or it has passed, you probably have a periodic tenancy and the notice requirements
There are two main ways to end an agreement early
Coming to agreement with landlord
What is a break clause?
A break clause in a contract details how a contract may be terminated before the end of the
agreed term. Your contract will give you details on the break clauses in place. Break clauses
usually contain information such as
The amount of notice you need to give
How to give notice
An example break clause could be the tenant must give 2 months’ notice in writing.” Not all agreements will have a break clause, they are more common in longer fixed term tenancies.
Coming to agreement with landlord
It is possible to agree an early end to an agreement if you can agree a mutually suitable arrangement with your landlord. This is known as a surrender. This will involve you handing over the keys on the agreed date and the landlord confirming that the agreement is over and he now has possession of the property again. In this case you may be asked to sign a
Declaration of Surrender, this is a document that states your intention to leave. It is important that you get all of your belongings out of the property and leave the property in a condition as per your agreement with the landlord before the agreed end date.
If an agreement with your landlord is not reached and there is no break clause
If your tenancy is still in the fixed term you will be liable for rent until it ends and/ or you give
proper notice in accordance with the terms of the agreement.
As a landlord
Do you have an assured shorthand tenancy (AST) in place? AST’s are the most common type of tenancy agreement and are typically granted for a fixed period of 6 months, although there is no legal requirement to give any fixed term period at all. An AST will give you the right to take back possession of your property without using a break clause as long as the contract you have in place has been written properly. This is however only applicable in certain circumstances and sometimes possession can only be obtained after the end of any fixed term period. If the fixed term period has passed and the tenant remains in occupation, the tenancy automatically becomes a periodic tenancy that rolls over from month to month at the same rent.
What if tenants leave without coming to an agreement?
This is known as 'abandonment' and does not signal the end of the agreement and the agreement will continue and the tenant is still liable for rent. In this case you can use the courts to obtain judgment against the tenant for any unpaid rent. In the event that the property is let again you can only recover rent for the period up until the start of the new let agreement. As a landlord you must be sure that the tenant has surrendered by abandonment before letting the property again or making changes to the property that would prohibit the tenant from entering the property again. Returned keys are a clear indication of surrender by abandonment but communication is key, talk with the tenant and be sure everyone understands the situation.
What if you are unsure if a tenant has left the property?
It is not always clear if a tenant has indeed abandoned the property. Some accepted indicators of abandonment are non-payment of rent, property keys being left behind or returned to the landlord and the tenant’s possessions being removed from the property. If as a landlord you are unsure if a tenant has indeed left the property you should end
the tenancy by applying to the Court for a possession order. This removes the risk of unlawful eviction under the Protection from Eviction Act 1977, which protects tenants from being unlawfully evicted from properties.
John Barkers landlord solicitors have serviced landlords across the UK since 1884
If you are a tenant wishing to end an agreement or a landlord seeking assistance the John Barkers team are here to help. Give our friendly team a call on 01472 358686. Our landlord and tenant solicitors are experts in all areas of residential contract law and are here to help you.