Q&As

An occupier of residential property is granted a 12-month fixed term ‘licence’. If the ‘licence’ includes a clause purporting to automatically renew the licence for a further 12-month term unless the ‘tenant’ serves three months’ notice on the ‘landlord’ to terminate the licence on expiry of the initial fixed term: would such a clause be valid? and is such a clause an unfair contract term?

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Produced in partnership with Alexander Campbell of Field Court Chambers
Published on LexisPSL on 13/03/2020

The following Property Disputes Q&A produced in partnership with Alexander Campbell of Field Court Chambers provides comprehensive and up to date legal information covering:

  • An occupier of residential property is granted a 12-month fixed term ‘licence’. If the ‘licence’ includes a clause purporting to automatically renew the licence for a further 12-month term unless the ‘tenant’ serves three months’ notice on the ‘landlord’ to terminate the licence on expiry of the initial fixed term: would such a clause be valid? and is such a clause an unfair contract term?
  • Validity of a clause providing that licence or tenancy will automatically renew for a further fixed term unless the licensee or tenant has served a written notice to terminate the licence or tenancy

An occupier of residential property is granted a 12-month fixed term ‘licence’. If the ‘licence’ includes a clause purporting to automatically renew the licence for a further 12-month term unless the ‘tenant’ serves three months’ notice on the ‘landlord’ to terminate the licence on expiry of the initial fixed term: would such a clause be valid? and is such a clause an unfair contract term?

Validity of a clause providing that licence or tenancy will automatically renew for a further fixed term unless the licensee or tenant has served a written notice to terminate the licence or tenancy

It is not unusual for a tenancy agreement to contain a break clause (known more formally as an option to determine the tenancy). However, a break clause is an option for one or either party to terminate the tenancy while the

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