An assured shorthold tenancy agreement (AST) with a break clause is a legal document that lays out the terms and conditions of a rental agreement between a landlord and a tenant. This type of agreement typically stipulates a time frame during which either party can terminate the contract before the end of the fixed term.
Under an AST with a break clause, the landlord and tenant both agree to a contract for a specified period, generally six to 12 months. However, this type of rental agreement includes a break clause, which allows either party to terminate the lease early by providing notice within a specific period.
The break clause is typically inserted into the agreement to provide the tenant with flexibility in case of an unexpected change in circumstances, such as a job move or illness. The break clause also gives the landlord flexibility by allowing them to regain their property if they need to sell or move back into it.
When drafting an AST with a break clause, both the landlord and the tenant must ensure that the agreement benefits them equally. The agreement should include a clear description of the property, its condition, and the duration of the tenancy, including the notice period required to end the agreement early. The agreement should also clearly define the rent payments, council tax, utilities, and other costs associated with the property.
It is essential that both parties read and understand the entire agreement before signing it. If a tenant does not comply with the terms of the agreement, they may be subject to eviction proceedings. On the other hand, if a landlord breaches the agreement, they may be liable for damages.
In conclusion, an AST with a break clause is a common type of rental agreement that provides flexibility to both landlords and tenants. It is essential to ensure that the terms of the agreement are fair and that both parties clearly understand their obligations. By doing so, both parties can avoid potential legal disputes and ensure a smooth tenancy experience.