Break clause penalty?

I’m about to sign a lease with new tenants - a 12 month AST.
They have just asked if they can have a break clause after 6 months. I am not keen on this as it means finding new tenants & repeating all the necessary paperwork etc.

Is it legal to demand a penalty - say £150- 250?

Would appreciate any advice
Thank you

Most experienced landlords I know would know ever offer new tenants s 6 month contract which would then be allowed to go periodic. You really are binding your hands with anything else.

If tenants want to leave mid-tenancy you will almost certainly let them as its too risky and too much hassle to do otherwise.


Your “penalty” would be illegal and could you say why you think it best to force tenants to stay in your property ?
The standard these days is a fixed term of 6 months then roll onto periodic. Best all round.

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Thanks for your thoughts David122 and Steve11.

I have always done 12-mth ASTs which then go periodic as I prefer to have stable tenants. Changing every 6 mths entails a lot of extra bureaucracy & time spent on viewings & assessing potential tenants. Many people want 12 mth tenancies or longer, & that is what I offer / advertise. I’m not ‘forcing’ anyone to stay. Incidentally my last tenants stayed 3 years.

Having a 6 month agreement doesn’t mean the tenant changes with that frequency. Mine stay much longer on average and its one of the questions I ask right at the beginning.

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