Contract advice required...What does this read to you?

Question

'Two years from 28th March, 2007. Subject to a six month break clause with one month's notice in writing required thereafter'...
I am renting a building and this is stated in the contract. Just double checking!!? Thanks.

Thanks so far!...I too am reading the same, but the 6 month 'break' clause has me wondering if theres more to it that meets the eye..

Answer 1

Hi,

It basically means that after 6 months from the start of the tenancy you or the landlord can give 1 months notice to quit the tenancy.

This found in nearly all assured shorthold tenancy agreements as legally a tenant can actually get out of the tenancy after 6 months anyway, although the landlord has very little rights (even if the rent is not paid).

Dont panic, is a completely standard clause, although someone should have pointed this out to you before they signed you up!

Answer 2

It reads to me:

a) The length of the rental period is 2 years, starting on 28th March 2007

2) The rental of the first 6 months must be paid (even if you decide you no longer want to use the premises within first few days)

3) After 6 months if you should want to stop rental, thus ending your contract early, you have to give a month's notice to the landlord.

However I'm not a solicitor (my sister is though but not around atm).... and so I am not 100% certain. I would double check what is meant about the six month break clause.

Answer 3

I interpret this as as of 28th March 2007 the building is 'yours' for 2 years. The subject to a six month break clause means that either you or the landlord can break the lease after 6 months of you renting (i.e. after 28th September) at any point by giving one months notice in writing i.e. on Sept 28th give 1 months notice so you vacate on 28th October.

I am not a lawyer so don't quote me on it.

Good luck

Answer 4

You have a two year rental period, a six month break clause, meaning if you wish to break your tenancy, you must pay rent for six months, effectively the landlord expects a minimum of six months rent, from the time you wish to cease your rental. Therefore if you gave notice after one month, you would still owe five months rent plus the the first month. This then reverts to one month's notice, thus reducing the six to one months notice.

Good luck, you do need to run your contract by a lawyer experienced in commercial property leasing and rentals.

Answer 5

I think it means that you've agreed to take the building for two years, but anytime after six months you can give them one-months written notice to your intention to leave.

I think this means, as long as you give them notice, that you can leave at seven months. i.e. you cannot write a letter at five months, expecting to leave at six months.

You should check if you need to give notice on a certain day of the month at any time in the future. E.g if you are tied to giving written notice on the monthly rental date, or if you are able to give it partway through a month, to leave in the middle of the next month.

Oh - and from their side, maybe the same conditions occur? Or do they have to give you more notice documented elsewhere?