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Exercised break clause but now want to offer a new agreement on a month by month basis


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Hi everyone!

I had a 24 month agreement with 12 months break clause. I recently served notice to exercise 12 month break clause, because of a disagreement with the tenant. The notice has still not expired and the tenant is still in the property but it seems like we may be able to resolve the issue.

I have decided to let the tenant stay longer but i don't want to be tied up in a long contract.

I have served a section 21 notice exercising the 12months' break clause but we have agreed tenant can now stay longer. Does that mean that tenancy is now automatically periodic or should i draw up a new tenancy. And would the new tenancy in such a case be periodic and month by month or would that give the tenant a right to stay for another 6 months as a anew tenancy.

I hope I was able to explain clearly.


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A S21 is unconditional so as you have come to a agreement allowing the tenant to stay it is now invalid.

Note: A s21 doesnt end a tenancy.

So can i not end this 24 month tenancy now while i can exercise the break clause at 12 month? And may be sign a new tenancy agreement for shorter length of say 6 months?

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