Mutual break clause on renewal of tenancy agreement

[George54]

Hi, we have recently signed a renewal to our 1 year tenancy agreement. In our original tenancy agreement we have the following break clause:

 

"Mutual Break Clause

 

It is hereby agreed that after Six months the Landlord or Tenant may be released from this

Tenancy Agreement without prejudice to the rights and remedies of either party against the

other in respect of any antecedent claims or breach of obligation set out herein subject to 2

(Two) calendar months clear written notice from the Landlord and 1 (one) calendar month clear

written notice from the Tenant."

When our initial 12 months was up, we signed a renewal of the original agreement stating the following:

"The landlord and the Tenant takes a renewal of the original term within the agreement to commence on 08/09/2010 to end on 07/09/2011 at a rental of £X monthly and except as to the term and rent all other terms and conditions within the Agreement shall apply to this renewal.

It is further agreed that the Tenant may at their option end and terminate the Tenancy by notifying the Landlord or the Landlords Agent in writing in which event the agreement shall cease and terminate one clear calnedar months after the date of delivery of such notice. Such notice may not be given until after 8 February 2011 The termination of the tenancy may not therefore take place before 7 March 2011 resulting in a minimum tenancy period of six calendar months This termination shall not affect any rights or liabilities which may have accrued under any other clause in this agreement."

When I signed the renewal, I was nervous about the above terms, so asked via email whether we would still be able to terminate with one months notice under the break clause, and was in reply told that the notice period would still be one month.

We have since given one months notice, to be told that we are bound until 7 March 2011 (which may or may not result in ongoing costs for us depending on when a new tenant is found).

Because of the wording 'This termination shall not affect any rights or liabilities which may have accrued under any other clause in this agreement.' and the landlords email reassurance I was comfortable that the break clause still applied, but now am unsure. Does the renewal mean that the break clause is also reset (i.e require another 6 months)? Please help!

[Planner]

If you wanted to give just one months notice you shouldnt have signed a new contract. This would have allowed your previous contract to become what is known as a statutory periodic tenancy - rolling month on month - requiring you to give one months notice and your LL two months notice.

 

The new contract (as did the old one) as tied you in to a minimum 6 month contract:

 

Such notice may not be given until after 8 February 2011 The termination of the tenancy may not therefore take place before 7 March 2011 resulting in a minimum tenancy period of six calendar months.

So the LA/LL is correct. In terms of the email you sent. If the question you asked was:

Are we still be able to terminate with one months notice under the break clause - The the response you recieved was indeed correct as you only need give one months notice to 'activate' the breakclause.

[Aequitas]

Whether you incorporate the clause form the first agreement or not the effect is the same which is that six months need to pass before the tenancy can be ended. The only thing that may help is the landlord's email. What did it say?