break clause: how much is the last month rent if not full month

[biolulu]

Hi!

 

I have used the break clause in my tenancy contract to terminate it. It required a 2 month notice period, which I gave and was accepted by the landlord's agency.

This means that my tenancy agreement ends by the 25th of August. Nevertheless, my rental period usually runs from the 8th of each month. I have assumed that, if the tenancy contract ends by the 25th I would only have to pay from the 8th to the 25th but the letting agent is asking for a full month rent... He says the overpaid money will be returned and that they do this to protect them from tenants not leaving at the end of tenancy.

Is this legal? Do I have any obligation to pay over the end of contract period? Is there any protection for the overpaid money? What happens if I only pay for the period of 8 to 25 of August?

 

Any help would be much appreciated!

 

Thanks!

[BazzaS]

Pay the full amount, and claim any excess back after.

Don't risk not paying a "sum due" and putting yourself in breach, which LA/LL could use to prevent you exercising the break clause, for the sake of 14 days rent which you will reclaim after!

[king12345]

The estate agent is talking manure.

You have given the correct notice and they hold your deposit anyway (hopefully protected).

Just pay from the 8th till 25th.

The calculation is as follow:

Monthly rent x 12= X

X : 366 (days in this year) = Y (daily rent)

Y x 18 (odd days from 8th till 25th) = Z (this is what you should pay)

 

In other words if your monthly rental is £1000 this is how you work it out:

£1000x12=£12000

£12000:366= £32.79

£32.79x18=££590.20

 

If you're good with maths my apologies, but this might help others.

 

Bazza, I can't recollect any legislation regarding what you suggested.

Paying extra might lead to trouble getting the money back.

Paying the correct amount won't prejudice the return of the deposit if it's been protected

[BazzaS]

When is rent due?

If in advance, is it a full month's in advance?

 

If so, what is the position on 9th August if a full months rent was due but unpaid?

 

Is there a provision in the lease regarding the break clause and having to "not be in breach" to exercise it?

[biolulu]

Dear BazzaS,

 

My rent has been full paid every month and in due time. I will pay the rent for August in due time as well, there is or will be nothing unpaid. The question is that my contract finishes on the 25th so I will not be using the property any more and there will be no legal bind between me and the property as the letting contract is finished by the 25th. Indeed the property is already let to someone else starting September.

[BazzaS]

Indeed the property is already let to someone else starting September.

 

Good, as it is unlikely LA/LL will be looking for ways to frustrate you using the break clause!

[biolulu]

Dear King1234,

 

Tank you for your reply. The calculation of the amount from the 8th to the 25th has been most helpful as I was doing the calculation dividing only be the month...

I have been trying to go trough the Housing Act to understand how to proceed in this situation but could not find any specification regarding this. It seems to be a grey zone of the legislation.

As I have no experience in this matter I was wondering if there is anything stating that paying full month and getting refund of the overpaid rent is the common practice. Contacting the agent, she told me that there is no protection for the overpaid money... I assume it would be just a matter of mutual trust? This seems weird in business...

As you say, they have the deposit, so if we do not leave the property on the 25th they can claim money from there.

 

If you remember anything else that might be useful in this situation I would appreciate if you share it

Thank you!

[king12345]

If you pay the correct pro rata amount there's nothing they can do.

And given that they already found new tenant they won't even bother you more than with a begging letter.

Don't worry about the deposit because the dps won't accept any nonsense from the LL or estate agent.

You paid what was due, end of the story!

[mariner51]

I disagree, a T cannot give valid NTQ during Fixed Term and this cannot end until after expiry of correctly served Break Clause activation Notice, then T can give 1 month NTQ, to expire at end of rel rental period.

Rent for period is due, in full, on due date specified in AST, any rebate is at discretion of LL, unless T is adhering to LL s21 expiry date.

Sounds like LA has accepted your break clause activation as NTQ, effective 7th Sept ie last day of FT.

If OP wants good LL ref/no CCJ pay rent for full period, otherwise they may lose .

 

 

Insuff info.

IMO We need to know

1 Orig AST & rent due dates and whether rent due pcm.

2 Duration of orig Fixed Term

3 Wording of actual Break Clause used.

to give better advice.

[BazzaS]

 

Bazza, I can't recollect any legislation regarding what you suggested.

 

It isn't in statute or secondary legislation per se.

It is if the break clause in the lease has a provision requiring T to not be in breach to be able to use the break clause (so, it is a contractual issue rather than per a specific statute).

 

Whilst the LL having a new T "lined up" makes it unlikely LL will want to frustrate the use of the break clause, it is an issue to be aware of for LL's who might not have a new T and might want to find a way to prevent T from exercising a break clause (by identifying a breach of T's obligations if the lease then allows LL to use this to void the break).

[king12345]

One thing that could be a problem after the tenant has paid for the full month is that they don't actually move until end of the month because they have paid.

Then the LL would potentially lose the new tenants because they can't move in on the day agreed.

That's why I think that paying the pro rata makes things square and fare for both parties.

The reason given by estate agent is rubbish (tenants don't move out).

They would be in the exact same position if tenants stop paying rent .

It's a standard risk in the rental market.

My 2 pennies that the estate agent would be very slow at returning this unprotected sum.