Ending a tenancy agreement before its official end date can be challenging, but it’s not impossible. Whether your circumstances have changed, or you need to relocate for personal or professional reasons, there are options to explore. In this guide, we'll explain how to get out of a tenancy agreement early, the legal implications and what you can do if you’re unable to leave.
Can I end a fixed-term tenancy early?
Yes, but it depends on your tenancy agreement and the terms outlined in it. Fixed-term tenancies are legally binding contracts, meaning you’re obligated to pay rent for the full term unless specific conditions allow early termination. Some common situations where early termination is possible include:
Break clauses: If your contract includes a break clause, you may be able to end your tenancy early.
Mutual agreements: If you negotiate with your landlord, they may agree to let you leave early.
Exceptional circumstances: In rare cases, severe issues like unsafe living conditions may provide legal grounds to let you leave the tenancy.
What are the legal implications of breaking a tenancy agreement?
Breaking a tenancy agreement without justification or mutual consent can lead to:
Loss of your deposit: Landlords may withhold your deposit to cover unpaid rent.
Legal action: Landlords can pursue legal claims for unpaid rent.
Impact on future tenancies: A negative rental history could make it harder to rent in the future.
Understanding your rights and responsibilities under the agreement is crucial to avoid unnecessary disputes or financial loss.
What are your options?
If you need to end your tenancy early, there are several pathways to consider. Each option comes with its own set of considerations, so it’s essential to choose the one that best suits your situation and complies with your tenancy agreement.
Using a break clause
A break clause is often the simplest and most straightforward way to terminate a tenancy agreement early. It is included in some tenancy agreements and allows either the tenant or the landlord to end the contract before the fixed term has expired.
Key considerations:
Break clauses often specify a minimum period before they can be activated. For example, you might only be able to use it after the first six months of a 12-month tenancy.
You must give your landlord written notice, typically one or two months, depending on the agreement's terms.
Failing to follow the exact procedure outlined in the agreement (like how and when to deliver the notice) may invalidate your attempt to terminate the contract.
How to activate a break clause
If a break clause is available, it can provide a smooth and stress-free way to exit a tenancy early. Here's how you might typically activate a break clause:
Review your tenancy agreement: Check the exact wording of the break clause, including any conditions and timelines.
Serve notice correctly: Write a formal notice to quit letter, ensuring you include all required details, such as your name, address, and intended end date.
Confirm receipt: Deliver the notice via a method that provides proof of delivery, such as recorded mail or email with read confirmation.
Negotiate with your landlord
If your tenancy agreement doesn’t include a break clause, or if you’ve missed the opportunity to use it, negotiating directly with your landlord is the next best option. Many landlords are willing to accommodate tenants’ needs if a mutually beneficial solution can be found.
⭐Editor's top tips to negotiate effectively
Communicate openly: "Be honest with your landlord about why you need to end the tenancy early. Personal circumstances like relocation for work, family needs, or financial hardship may help them to understand."
Propose a replacement tenant: "You can also offer to help find a new tenant to take over your tenancy. This reduces the landlord’s financial risk and minimises the inconvenience of re-letting. And if finding a replacement tenant isn’t feasible, you could also propose paying an agreed sum to cover the landlord’s losses, such as a portion of the remaining rent or re-letting fees."
Get it in writing: "I see a lot of tenants slip up on this. Any agreement you reach with your landlord should be documented in writing to protect both parties."
Seek a surrender agreement
If negotiation leads to an agreement, you and your landlord can sign a surrender agreement, which is a formal document that ends the tenancy by mutual consent. The key elements of a surrender agreement include:
It confirms that both parties agree to terminate the tenancy on a specific date
It can outline any financial settlement agreed upon, such as compensation for the landlord
Once signed, it releases you from any further obligations under the tenancy agreement
Subletting or assigning the tenancy
If your tenancy agreement permits subletting or assigning the lease to another tenant, this can also be a practical solution. Just keep in mind that some landlords are hesitant to allow subletting or assigning, so it’s crucial to discuss this option early. You can learn more in our guide to what is subletting?
Subletting: You find someone to rent the property from you while you remain legally responsible for the tenancy.
Assigning: The new tenant formally takes over the lease, relieving you of further responsibilities.
Steps to sublet or assign a tenancy:
Check your agreement: Ensure that subletting or assigning is allowed and whether you need your landlord’s consent.
Find a suitable tenant: The new tenant should meet the landlord’s requirements, such as passing reference and credit checks.
Secure approval: Obtain the landlord’s written consent before proceeding.
What to do if you can’t get out of the agreement?
If neither a break clause nor negotiation works, you may need to stay in the property until the end of your fixed term. However, there are ways to mitigate the impact:
Seek professional advice: Legal experts or tenant advocacy groups can provide guidance on your specific situation.
Plan ahead: Start preparing for the end of your fixed term early to minimise disruption.
FAQs
Can you leave early if served a Section 21 notice?
Yes, you can leave early if you’ve been served a Section 21 notice or possession order, but it depends on your tenancy agreement. If your agreement includes a break clause or you negotiate an early departure with your landlord, you may leave before the notice expires. Otherwise, you’re usually obligated to pay rent until the end of the notice period or the tenancy’s fixed term.
Can you back out of a tenancy agreement after signing?
Once you’ve signed a tenancy agreement, it becomes legally binding. However, you may be able to withdraw before the tenancy starts if the landlord agrees. If the landlord refuses, you might still be responsible for rent payments until a replacement tenant is found or the fixed term ends. Always communicate clearly with your landlord and seek advice if needed.
Final thoughts
Ending a tenancy agreement early can be complex, but understanding your options and rights can make the process smoother. Whether you use a break clause, negotiate with your landlord, or explore other alternatives, it’s essential to act responsibly and professionally.
If you’re struggling to navigate the process, don’t hesitate to seek advice from a legal professional. Taking the right steps will help you protect your financial and legal standing while moving on to the next chapter. If you need support, get in touch today to see how one of our landlord and tenant lawyers can help.
References
Private renting for tenants from Gov.UK