Real Estate things you once knew but may have forgotten - When do leases start and finish

When do leases start and finish

Establishing exactly when leases start and finish can be crucial to landlords and tenants alike. Certainty is necessary, for example, when exercising break options, for rent reviews and when serving statutory notices under the Landlord and Tenant Act 1954.

Most leases today state the commencement date of the term clearly, but in documents where no such express statement is made, the term will commence on the date of the lease itself.

Take an example of a lease for a five year term. If the lease term is expressed to ommence "on" or "with" a date that date is the first date of the term. It will expire on the day before the anniversary of the commencement "on" or "with" date. If, however, the lease term is for a period commencing "from" a date, the term will generally start on the next day and expire on the anniversary of the "from" date.

Care must be taken with these "from" dates, as the general rule can be varied by the provisions of the lease. For example, where rent is collected to include the "from" date, the term will include that date too and terminate on the date before the anniversary of the "from" date. Similarly, "from and including" means that the first day is the "from" date.

Another exception is if a lease commences or ends on the last day of February. If a lease started on 31st January for a one month term, it would expire on 28th February (except in a leap year), but if a lease started on 28th February for a term of one month, it would expire on 28th March, and not 31st March.

When dealing with section 25 notices under the Landlord and Tenant Act 1954, the end date of the lease is of critical importance, as it is not possible to terminate a statutory tenancy earlier than the contractual end date of the lease. If you do not wish your tenant to "hold over", it is essential to identify the date on which the lease ends.

Practically speaking (and unless time is critical), it is prudent to add one or two more days to ensure that your notice does not specify a termination date that is too early, thus invalidating your notice. This will avoid argument about the true interpretation of the lease.

By way of example, for ease of reference:

• A lease for five years commencing on/with 25th March 2004 will start on 25th March 2004 and will end on 24th March 2009
• A lease for five years from 25th March 2004 will start on 26th March 2004 and will end on 25th March 2009
• A lease for five years from and including 25th March 2004 will start on 25th March 2004 and will end on 24th March 2009
• A lease for five years from 25th march 2004 (where rent collected for 25th March 2001) will start on 25th March 2004 and will end on 24th March 2004

For further information please contact Kate Halsall at [email protected] or on +44 (0)20 7367 2981.