Section 21 Agreement

Posted on June 10th, 2011 by admin in Section 21

Section 21 Agreement

A Section 21 Agreement is served in England & Wales, by a landlord to end an Assured Shorthold Tenancy Agreement before or following the finish of the fixed term.

To legally terminate an Assured Shorthold Tenancy Agreement at the end of the fixed term, the landlord is legally obliged to serve a Section 21 Notice on the tenant and must provide their tenant with a minimum of 2 months’ notice.

If possession is sought by the landlord during the fixed term then it can only be obtained if a breach of contract has been proved and a Section 21 Notice would not be appropriate. In these circumstances a Section 8 Possession Notice should be served in its place.

Section 21 of the Housing Act 1988 is divided into subsections with various rules applying to either; notice given during the fixed term of a tenancy or notice for possession that is served during a statutory periodic tenancy. The differences between the two are now explained.

Section 21 Notice – Before end of fixed term

This notice applies to a fixed term Assured Shorthold Tenancy Agreement where notice for possession is served during the fixed term. Notice under this criterion can be served on a tenant at any time during the fixed term of the tenancy but not before the fixed term begins, as long as the tenant is given a minimum of 2 months’ notice. This is applicable, even if the 2 months’ notice ends after the Assured Shorthold Tenancy Agreement has expired.

For example, if the Section 21 Notice is served on the final day of the Tenancy Agreement, the tenant will not have to hand over possession of the property until 2 months after the date that the notice was served or until the date written on the notice, if it is more than 2 months away. It should be remembered that where the tenant is in the original 6 months of the tenancy, then the Section 21 Notice may not expire before the end of that 6 months.

Section 21 Agreement

Section 21 Notice served – After expiry of fixed term

This notice applies to a statutory periodic tenancy which is a tenancy that automatically continues after the expiry of a fixed term Assured Shorthold Tenancy. A minimum of 2 months’ notice is required and the day on which the notice expires must be the last day of a period of the tenancy. The period of a tenancy depends on how often the rent is paid. Thus, if the rent is paid monthly, then the period of the tenancy is one month. The periodic tenancy begins directly after the fixed term expires.

For instance, if the period of the tenancy is monthly and the first day of the current period is 15th June then the last day of that period will be 14th July and so a notice served during the current period would need to be completed so as to expire on the last day of a period after a further 2 months (i.e. 14th Sep).

Section 21 Agreement

Finally, it’s prudent to send any Section 21 Agreement by recorded delivery, allowing 3 days for delivery.

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Next Article – Free Section 21 4 A Notice

Link To This Article – Section 21 Agreement

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Section 21 Agreement

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Section 21 Agreement

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