Ending a Part VII contract

There are four ways in which a Part VII contract that is a tenancy can be ended:

It is possible for a contract to allow either party to terminate the tenancy before the full contract term. For example, it might say that the occupier must give the landlord 28 days written notice, and vice versa.

Even if the contract does not provide for this, the landlord and occupier can come to an agreement about ending the contract prematurely.

Where the occupier abandons the accommodation and the landlord rents it out to someone else, this will be taken as an implicit agreement to end the Part VII contract. [1] However, until such times as the landlord takes back possession (for example, by granting the right to occupy to someone else), the occupier will remain liable for rent.

The landlord may terminate the Part VII contract at its expiry by serving a notice to quit on the tenant. Where there does not appear to be any fixed term (ie a term is not specified) then the rental period may be indicative of the term of the contract. Where the contract is of more than four months' duration, the minimum period of notice to be given is 40 clear days. [2] For Part VII contracts of a shorter duration, the minimum is one-third of the duration of the contract, [3] subject to the absolute minimum in residential tenancies of 28 clear days. [4]

The tenant may terminate the Part VII contract by giving the landlord a written notice to quit at the end of the contract's duration. Where there does not appear to be any fixed term (ie not specified in the contract) then the rental period may be indicative of the term of the contract, eg if the rent is paid monthly, then one month's notice is required. The length of the notice is subject to the statutory absolute minimum duration of four weeks. [5] If the lease is for a year's duration or more, the minimum period is 40 days. [6]

Part VII contracts that are not leases (in that they do not contain all of the elements essential for the creation of a lease - see the section on leases for more information) are very rare. This is fortunate, as there is an almost complete absence of rules about accommodation arrangements that are not tenancies.

Where a written contract exists, the parties will be bound by its terms. If the arrangement is verbal, the terms may be unclear and subject to dispute. If there is no clear agreement about how long the Part VII contract is to endure, it may be considered to be a recurring agreement coinciding with the rent payments. So, for example, if rent is paid monthly, the contract may be a recurring monthly contract. Requirements of notice to terminate the contract also seem to be unclear. It is suggested that either party should give 'reasonable' notice. [7]