Can tenants terminate their tenancies early due to COVID-19?
Many tenants in the private rented sector, particularly students who have other accommodation outside of term-time, are asking landlords whether they can terminate their tenancies early in response to the coronavirus outbreak. This blog looks at the legal position on terminating tenancies early and what landlords should be considering when dealing with such requests from their tenants.
Force Majeure
Force Majeure is a contractual term mostly found in commercial contracts allowing parties to exit or delay the performance of the contract when a specified event that is beyond the parties control occurs. These events are usually an act of God, natural disasters, fire, flood, war, acts of terrorism etc. Most contracts will specify what the specified event may be allowing the parties to exit/delay performance of the contract. However, in the context of residential tenancies, you are less likely to find a force majeure clause allowing parties to end their tenancy agreement. Therefore, unless your tenancy agreement has a force majeure clause your tenants will not be able to rely on this.
Frustration
In such cases your tenants may wish to consider whether it is possible for them to rely on the common law doctrine of frustration. Frustration allows a contract to be discharged if unforeseen events occur that will make performance of the contract a) impossible b) illegal or c) if the central purpose of the contract has changed. If there has been an event frustrating the contract, then the contract will end, and parties will be released from the contract.
Most residential tenants will not be looking to end their tenancies during this turbulent time. However, student tenants may wish to end their tenancies early to return home to their parents and/ or back to their home countries during the pandemic. However, where they are part-way through a fixed-term contract, they are unlikely to be able to rely on frustration or a force majeure clause to end their tenancy early. This is because their decision to move back home is a personal decision and the accommodation is still available for them. The fact that university campus buildings may be closed, and teaching may have temporarily ceased does not affect the performance of the tenancy. Some landlords may be willing to negotiate with the tenants to agree rent suspensions for a specified period, rent reductions or a change in the way in which rent is paid. Many landlords may be reluctant to release students from their tenancies early as they will find it difficult to re-let their properties during the current crisis.
In cases, where accommodation has not been taken up yet by a student who is abroad the situation may be different. For example, international students who are unable to travel or obtain the necessary study visas as a result of coronavirus disruption may be in a stronger position to argue frustration. However, the threshold is a high one and each tenant’s individual circumstances would need to be considered.
So, are there any alternative methods that can be used to end tenancies?
Break clauses
If you have an Assured Shorthold tenancy agreement which is currently in its fixed term you may wish to check if your tenancy agreement has a break clause. A break clause may allow your tenant to end the tenancy before the end of the fixed term by giving notice in accordance with the break clause. A well drafted agreement should set out when the break clause can be exercised, the length of notice required, the form of the notice and the method of service on the landlord. It is important that the notice complies with the requirements in the tenancy agreement otherwise it may be not be valid and the tenancy will not terminate.
Express Surrender
It is always possible for parties to agree to end the tenancy at any time by way of a surrender. Express surrender needs to be by way of a deed of surrender which will formalise the agreement and release both parties from their obligations. If you are agreeable to an early release of a tenant, then you should formalise this arrangement by way of a deed of surrender.
If you are unsure of what you can do and seek legal advice, then get in contact with our legal team who will be happy to advise you further on your options.
*Disclaimer: The information on the Anthony Gold website is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. It is provided without any representations or warranties, express or implied.*
I live abroad and rent out my home. Due to the covid 19 crisis I have been made redundant and need to move back To the Uk and into my home. What notice period do I need to give? The short term tenancy runs out in September anyway. I own no other properties in the Uk.
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Hello, due to Covid19 I lost my job and have to break my contract as I won’t be able to pay for the rent after this month.
I’m currently abroad and my room is free but my contract is to terminate in September.
What should I do/say to the landlord about this tenant?
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Due to COVID-19, I have been laid off from my employer and asked to go back to my country .
Currently My tenant agreement is up to 5th October 2020 ( 3 more months remaining). The landlord/agency did not accept my surrender of tenant agreement.
I have booked repatriation flight to return back to my country on 8th July 2020.
How can I proceed this situation with the landlord about the tenant agreement.
Hi, My (ex) partner and I rented a place togrther. Since the pandemic, I have lost my job and relationship. We both moved out at the end of June and have not paid 3 months rent during the pandemic and have little to no way of paying it back during this time as the low Credit I recieve from the Gov only covers food/bills of my current place of residents.
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Hello, I’m currently struggling with a tenancy agreement that I’m struggling to pay/get out of, this is causing issues with finding jobs in other locations as I won’t be able to move.
Hello,
I am looking to rent a flat in London for 24 months, however there is an Early Surrender clause that seems unreasonable.
Early expiration of the fixed term. Under exceptional circumstances, the Landlord may (but without any obligation), consider a request for the surrender of this tenancy as described below.
If the Tenant requests to surrender the tenancy prior to the end of the fixed term, and the Landlord agrees to the surrender, then the Tenant will be responsible for rent until the expiry of the tenancy under this agreement or the date the Landlord or a new tenant takes possession of the Premises whichever is earlier.
The Tenant will also be responsible for any reasonable costs the Landlord incurs in effecting a surrender of the tenancy and finding a replacement tenant. The Landlord will advise of the actual costs at the time of the request, each case being considered on its own merits.
As a general guideline, these costs may include (but not limited to):
· The letting fee of up to 11% + VAT (13.2%) of the rent from the date of early surrender until the original end date of the Tenancy,
· A proportion (being the number of months to be surrendered early as a percentage of the current fixed term) of the Landlord’s costs in sum of £144 (inc.) for an inventory clerk checking the new Tenant into the Premises,
· A proportion (being the number of months to be surrendered early as a percentage of the current fixed term) of the Landlord’s costs in sum of £480 (inc.) being the cost of administering the new Tenancy, preparing the Tenancy Agreement, collating references, checking the new Tenant’s Right to Rent and registering the deposit with an approved Government scheme
· For the surrender and grant of a new tenancy on similar terms, the Landlord’s costs would be £300 (inc.) plus any
associated inventory costs.
If the Tenant intends to vacate at the end of the fixed Term or later he must give the Landlord at least two clear months prior notice in writing.
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due to the pandemic, I am unable to attend university in UK and I do wish to terminate the tenancy agreement. My landlord is asking for a full year rental fee unless I’ve found a new replacement tenant.
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My student accommodation (privately owned) is refusing to let me break the lease. The tenancy began on June 2020, I am an international student. I have not set foot on UK soil since March 2020. I will not be able to return to the UK for the foreseeable future because of covid-19 and universities being closed. The tenancy agreement does not have a termination clause or a force majeure clause; I’m going to try and argue frustration, but as I’m international I don’t know how to proceed. Should I send them an email? Do I need to go through the courts and other legal proceedings? Please advise.
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Hi
I have renewed my contract for 1 year but due to circumstances related to the pandamic, I had to leave the UK and may not come back in the near future because the university is closed.
I have not paid the amount yet. What should I do in this case?
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Hi, Currently my UK contract got terminated, So I have to move out of UK by Sep 30th due to COVID situations. I have contacted the Agent for tenancy breakage and given notice over email / phone on AUG 21st. But they are asking to pay re-marketing fee of 300 (+ VAT) and I have to pay rent until next / new tenant. In the mean while I have found myself from my friends circle, a couple( hus & wife ) who are willing to take over tenancy from OCT 1st. Same I inform to the agent they are not agreeing to that. I need help on this regard.
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I’ve rented a property in Spain on a 12 contract from dec last year,
Yet because of the pandemic I’ve not been able to even go to Spain due to restrictions and there in place until late late summer early autumn by which time I would have had to pay nearly £5000 in rent without even legally being allowed into Spain, am I within my legal rights due to the pandemic to get out of my contract early
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Hi, I am an international student looking to rent an apartment with 2 other flatmates in London for 22 months. However, the landlord refuses to include a breakout clause, which is highly disadvantageous as we are not sure if there will be another lockdown and we would have to fly back to our home country. The clause is described below:
If the Tenant requests to surrender the tenancy prior to the end of the fixed term, and the Landlord agrees to the surrender, then the Tenant will be responsible for rent until the expiry of the tenancy under this agreement or the date the Landlord or a new tenant takes possession of the Premises whichever is earlier.
The Tenant will also be responsible for any reasonable costs the Landlord incurs in effecting a surrender of the tenancy and finding a replacement tenant. The Landlord will advise of the actual costs at the time of the request, each case being considered on its own merits.
As a general guideline, these costs may include (but not limited to):
· The letting fee of up to 11% + VAT (13.2%) of the rent from the date of early surrender until the original end date of the Tenancy,
· A proportion (being the number of months to be surrendered early as a percentage of the current fixed term) of the Landlord’s costs in sum of £144 (inc.) for an inventory clerk checking the new Tenant into the Premises,
· A proportion (being the number of months to be surrendered early as a percentage of the current fixed term) of the Landlord’s costs in sum of £480 (inc.) being the cost of administering the new Tenancy, preparing the Tenancy Agreement, collating references, checking the new Tenant’s Right to Rent and registering the deposit with an approved Government scheme
· For the surrender and grant of a new tenancy on similar terms, the Landlord’s costs would be £300 (inc.) plus any
associated inventory costs.
If the Tenant intends to vacate at the end of the fixed Term or later he must give the Landlord at least two clear months prior notice in writing.
How do I proceed with this so I am protected in the case of unforeseen circumstances such as a pandemic?
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I do not have a break clause but I would like to move out because I am struggling to pay my rent due to COVID. What are my options? Thank you
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Hello,
I moved in in central london in September 19th and signed a 2 years contract with a one year break lease. I am an international student and it was my first time dealing with agents. They were so malicious and pressured me into applying for an appartment the way they wanted to. They told me that I should ask for a 2 year lease even though they knew I wasn’t going to stay. And they assured me that in a case of Corona if there is a second wave it should not be a problem for me to move out because so many people moved out during the first wave. In the excitement and rush and pressure I applied just like they asked me to apply without negotiating the price or the contract.
The second wave hit London and I was stuck there without my family, I have a background of bad depression and suicidal thoughts so I couldn’t not stay any longer. I couldn’t find a job and the school closed. I decided to leave on December 5th. The landlord has been paid 6 months in advance so she had 3 months of paid rent and has 3 months left to find someone to take the apartment. She is asking me to pay for the agency commission, she is asking me to pay for the rent difference in case there is one with the new tenant. And she is making sure that I know I am still responsible for the remaining 6 months rent if they can’t find anyone.
Is there any way I could use my rights, call for force majeure or frustration or anything to break my lease definitely and not feel pressured by this landlord any longer ? This is a very unfair situation.
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Hello, my name is Bernardo Rodrigues, I have been living with a couple that is my childhood friendly, recently due to the pandemic they both lost their jobs and went back to our home country, however im still living in the house, this is suppose to be the last month, our contract finish in March, however we told our landlord 3 or 4 months ago that we were going to leave in December due to the pandemic and due to this couple being redudant, they were left without furlough or any income, obviously I cant afford with my brother an house where the bills were split between 4 .. and the landlord now wants me to keep paying until the end of the contract, thats exactly the reason why I’m changing house .. seems like after 3 years of bills being paid in time, the landlord is not making it easy for us .. Best regards, hope you can advise me in what to do, thanks
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Hello,
in my fixed term tenancy agreement, which ends in August 2021, the break clause says that I have to give 1 month notice, but such notice cannot be given prior to one month before the end of the contract. This makes the break clause basically useless, since it only allows me to give the notice in July 2021.
I had to come back to my home country on November 14th due to impending covid restrictions, however my landlord wouldn’t agree on a surrender and he wants me to find a replacement for my contract.
Is it even legal? I would like to end the tenancy asap, it’s been 2 months and he still wants me to pay rent. What would you suggest me to do in this case?
Thank you in advance, any help would be greatly appreciated.
Kind regards,
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I took out a 5year commercial lease agreement a year ago. At the time I voiced that I would need it allow me to breakout anytime during the 5year period. This was verbally agreed and assumed that was the case and went ahead.
Now I’m unable to pay the rent due to covid and they will not let me break from the tenancy. Please help.
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My daughter has entered into ASHT lease agreement to jointly rent the two bedroom apartment , shared with one other person, for 1 year. She also asked for the break clause to be included so she is able to review the options in 6 months.
Due to COVID 19, she would like to move out after the 6 months, but she can only do that if the other tenant is in agreement. Her flat mate wants to stay and is not allowing her to move out. My daughter is shielding and the stress is causing her condition to flare up. Her flat mate is a doctor and is daily exposed to the corona virus, which is putting her in more risky situation. My daughter gave two months notice to the agent that she would like to leave the apartment but response was negative. She found two suitable replacement, both wanted to move to the apartment immediately , but the flat mate did not want to accept them. She contacted the Landlord and she responded negative as well, saying that she will have additional cost if she leaves. My daughter is ready to pay for the cost of changing the name on the lease and any other admin cost., but seems to be stuck. Can you please advise the best way forward?
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I have been renting a shared house since October. My 6 month break clause is in April but I have to give notice by February. One of the other tenants works for the NHS so I decided it was best to move back in with my parents for the second lockdown in November. I have been paying rent every month for a room I have not been living in. I am still at my parents because we’re in tier 4 and I can’t move back to my shared house. I want to end my contract because I can’t afford to pay rent in a house I’m not living in but the letting agency said I have to wait until April. Is it possible to end my contract sooner because of covid?
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Hi there,
Thank you for the information. We are four tenants who are renting a house in central London, we would like to know if there is grounds to terminate our contract based on the fact that overall property rental charged in the area has decreased due to COVID? We as tenants furthermore have grounds to believe that the house is not up to overall standard, as a result of window hinges breaking, radiator leaks, shower leaks etc..
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Hi there,
Me, my wife and a “friend” signed a new contract in July 2020 for another 2 years in the property. Due to the pandemic we all are in Furlough and my wife is on Maternity leave with very low income. We will have a baby in 1 month. My “friend” has to leave the property as he can no longer afford the rent. In our contract there is no break clause. We tried to explain to the landlord our situation, but he refused to break the contract unless he finds new tenants. What should we do? Me and my wife we can still pay 2/3 of the rent, but if my “friend” leaves, I cannot pay the full rent. Will I be responsible for the whole rent even if he is also in the contract and he signed as well?
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Hi, i live in London but I have a 6months fixed term tenancy Agreement for a flat in Brighton, started 31 Dec 2020 since my daughter’s School was due To start 5 Jan 2021 (then 6 Jan, then 11 Jan, she is in year 11, GCSE year). Due To Covid-19 she was Not able To get her weekly boarding place (the School has to change from 3 to 2 girls sharing room) as promised when we moved To London. I signed the tenancy Agreement, paid the First months rent and Picked up the keys on the 31 Dec 2020 and on Mon 4 Jan 2021 8pm Boris announced online lessons until after Feb halfterm. I want To cancel the Agreement since its unlikely that they will go back To School until after Easter (or at all this School year). Can I use frustration To break the contract? Its both impossible and illegal for me To even travel To Brighton living in London. There is No apparent break clause in the contract but It mention that i should pay reasonable cost To the landlord in the event of forfeiture. I am prepared To return keys immediately so they can re-let the flat. What risks do I have if I dont pay next months rent and return the keys?
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Hello,
Currently I’m in a fixed term agreement and i would like to break my contract due to the Covid-19 restrictions and as a student i have lived in my family’s house since December and as i cannot travel back i would like to return the key and break my contract, but they are refusing.
What can I do/say to them?
Kind regards,
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My partner and I are trying to end our tenancy early. We gave our notice one month before and 3 months later there is still no replacement and we are stuck in this flat paying for something we cannot afford. We express our feelings to the agency and are getting no where. I even tried to surrender the deposit but still nothing. My partner got offered a job which requires us to move ASAP. If I tell the agency will that help?
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You wrote good article connecting present situation to tenants