A break clause will most commonly allow either the landlord or the tenant to give notice at an agreed interim stage of a tenancy. This is usually requested by the landlord or the tenant if the initial fixed term is for a year or more.
For example, a 12 month tenancy may have a 6-month break clause which means that the tenant or landlord can give notice to terminate at the 6-month stage. Notice cannot be given prior to this date nor can it be given after the break clause stage has expired.
Care should be taken when instructing the notice as it is very important to take into account how much notice is required and when this has to be served. Some tenancy agreements state that one month notice must be given by the tenant to fall in line with a rent due date.
If notice is given just one day after the rent due date then this can in fact mean that nearly 2 month’s notice is given because it is not effective until the next rent due date. The notice for the break should be given to expire at the 6 month stage in this example.
Landlords must provide the tenants with 2 months notice whereas tenants should provide 1 month notice to the landlord should they want to leave after the first 6 months.
Tags: break clause, tenancy
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