I have rented a property starting from 15 September 2016, and the tenancy agreement was for 12 months. I paid 6 months up front, and there is a break clause at the end of the 6 months. I have decided to end the tenancy at the end of the 6 months, which is 16 March 2016 – however, upon reviewing the tenancy agreement, i am not too sure whether I have to pay some form of compensation in this case.
I have attached the exact wording from the agreement regarding the break clause – if someone could read the wording and tell me what exactly I have to pay/do at the end of the 6 months (besides serving notice on 60 days before), it would be great!
7.1 If the Tenant shall desire to determine the tenancy hereby created at the end of the first
six months to expire on 15 MARCH 2016 and shall give to the Landlord not less than
TWO MONTHS previous notice in writing of such desire and shall up to the time of such
determination pay the rent and observe and perform the agreements and obligations on
the Tenant’s part hereinbefore reserved and contained then immediately on the expiration
of such notice the present tenancy and everything herein contained shall cease and be void
but without prejudice to the rights and remedies of either party against the other in
respect of any antecedent claim or breach of obligation.
7.2 If the Tenant shall determine the tenancy hereby created pursuant to the provisions of
Clause 7.1 above then the Tenant shall on demand pay to the Landlord a proportion of
the legal costs licence fees and letting agents fees incurred by the Landlord in connection
with the creation of the letting such proportion to be a calculation based on the ratio that
the unexpired term of the tenancy bears to the length of the period from the
commencement of the term to the date of which the notice of determination takes effect.
Any rent paid in advance for any period after the expiration of such notice shall be returned
to the Tenant after deduction of any costs referred to above.