Consequences of Activating an Interim Termination Clause

Activating an interim termination clause has immediate legal and financial consequences for both parties. The tenant must vacate the property empty and undamaged, with settlement of rent and service charges up to the termination date. Landlords may refund the deposit minus any outstanding amounts. In case of disputes over the grounds for termination, the court may intervene; unjustified activation can lead to penalties or continuation of the contract. Notification is crucial: termination must be done by registered mail with supporting documents, such as a divorce decree. Tenants risk incurring housing costs elsewhere if the property is not vacated on time. Landlords must seek alternative tenants but bear no liability if the clause is correctly applied. From a tax perspective, interim termination may affect mortgage interest relief or housing allowance. In practice, 30% of cases lead to procedures before the Rent Tribunal. Tip: document everything and seek mediation to prevent escalation.