Break Clause question about final payment

Hello, I am halfway through a 24month contract. We are thinking of activating our break clasue so we can move closer to family. It currently says on my account if activate now, my tenancy will end 23rd June. Can anyone advise when my last rent payment will be made? Would it me May or would the last payment be made on the end of tenancy date?

Mutual Break Clause
9.6. The Initial Term of this tenancy agreement may be terminated by either party giving the other at least two months’ notice in writing, such notice not to expire until at least 6 months after the start of the Term. A notice served by the Landlord under section 21 of the Housing Act 1988 shall be sufficient notice under this clause.
The Tenant is obliged to pay rent up to and including the termination date, so if the tenancy is terminated on a date which is not the last day of a rental period, the rent due for any incomplete rental periods will be apportioned accordingly.

I am assuming your rent payments are made on the 24th of each month which covers your rent until 23rd of the following month. If so, you will make your penultimate payment on 24 April which takes you to 23 May. Your final payment will then be on 24 May, which would cover your rent until the final day 23 June.

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The break clause appears to give you the option to serve a bare 2 months notice, so Im not sure why the online account has selected that date. If you want to serve the earliest possible date then you can probably post a notice today to expire 16 or 17 June (allowing the extra days for postage). You would then pay the pro-rata rent on 24 May to 16 or 17 June.

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It is most common for wording of the notice period is that " the notice is to expire at the end of a rental period." In this case that wording is not there so I am inclined to agree with David122.

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Hi Christopher, thank you for replying.

I haven’t given notice yet but have informed my landlord that I may be in the near future. He is fine with this and will help in anyway he can. When I asked him about the last payment, he came back saying that “The last payment date will be 2 months from the day we agree the mutual termination, so it’ll depend on when you activate that”.

As mentioned my rent is due 24th of the month. So if I give notice on the 29th April, my rent will be normal on the 24th May which will cover me until 23rd June. Then the June day will be just for the amount of days after the 23rd?

Have I understood this right? I’m not the brightest when It comes to this kind of stuff :rofl:

Ben63

That sounds about right…

Thank you :blush:.

My landlord is really supportive of us moving and has tried to look and other ways he could help with letting us go quicker than 2 months but can’t see any. Do you know of any other ways of ending the tenancy quicker that 2 Months notice?

Ben

This makes no sense. As a Landlord I could let a tenant leave today with no notice if I wanted to. Just agree it in writing, pay rent up to the leaving date & job done.

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Hi Karl, thank you for your reply. Would this also be the case although we have a break clause in place which states 2 months notice?

Is this way of ending a tenancy called anything in particular or it is just like a mutual agreement?

Ben

The original AST was a mutual agreement, and can be changed as you both wish to mutual agreement. It isn’t binding on either of you if you both don’t want it to be.

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