Company Letting Agreement

[Ted]

My new tenants asked me to include the following clause in a standard 'Company Letting Agreement':

"Ending the tenancy

1.We (Landlord) will give you at least two calendar months' notice, in writing, to end the tennancy.

2.You(Tenant) must give us at least one month's notice, in writing, to end the tenancy."

By including the clause above, does it mean they can terminate the tenancy at any time as long as they give me one month notice (even within the initial 12 months contract)? What is the use of signing the 12 months tenancy agreement? It doesn't sound right to me.

That clause sounds to me should be applied only after the fixed initial 12 months tenancy agreement (for roll-on purposes). I think there must be something to add prior to that clause, what will that be? How to phase it?

Any advice will be much appreciated.

[GPEL]

Hard to be taken in context without seeing the rest of the agreement wording. However, with a company agreement I always ask for parity of clauses. Does your contract state elsewhere something like "a certain term of...." and something describing what happens after the term?

[Ted]

Hi Gpel,

Thanks for your prompt reply, I was just using a standard Company Letting Agreement, a copy can be found at the website given below:

http://www.accentproperty.com/pdf/Blank%20...20Agreement.pdf

Should I add the clause under The First Schedule:

THE FIRST SCHEDULE

Special conditions:

Ending the tenancy after this fixed agreement term (i.e. after the initial 12 months in this case)

1.We (Landlord) will give you at least two calendar months' notice, in writing, to end the tennancy.

2.You(Tenant) must give us at least one month's notice, in writing, to end the tenancy.

Does it sounds right? Please advice. Your help is mucha appreciated.

Regards,

Ted

[GPEL]

Looks OK except for notice differences. Acceptable under an AST but ask them why the notice periods should be different for the company let. I would request parity.

[Ted]

Thanks Gpel.

I thought the ‘Statutory Periodic Tenancy' under the AST also requires two notice from the Landlord and one month noice from the tenant, is that right?

Ted

[GPEL]

Yes, under an AST the 2:1 notice ratio is usual but not necessarily the case for other types of agreements.