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Tenant Fees Act 2019
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- UK Public General Acts
- 2019 c. 4
- SCHEDULE 1
- Paragraph 7
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Payment on termination of a tenancy
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7(1)A payment is a permitted payment if it is a payment to a landlord in consideration of the termination of a tenancy at the tenant’s request—
(a)in the case of a fixed term tenancy, before the end of the term, or
(b)in the case of a periodic tenancy, without the tenant giving the period of notice required under the tenancy agreement or by virtue of any rule of law.
(2)But if the amount of the payment exceeds the loss suffered by the landlord as a result of the termination of the tenancy, the amount of the excess is a prohibited payment.
(3)A payment is a permitted payment if it is a payment to a letting agent in consideration of arranging the termination of a tenancy at the tenant’s request—
(a)in the case of a fixed term tenancy, before the end of the term, or
(b)in the case of a periodic tenancy, without the tenant giving the period of notice required under the tenancy agreement or by virtue of any rule of law.
(4)But if the amount of the payment exceeds the reasonable costs of the letting agent in respect of the termination of the tenancy, the amount of the excess is a prohibited payment.
(5)In this paragraph “fixed term tenancy” means any tenancy other than a periodic tenancy.
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