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yes the notice seeking possession should contain a catch all phrase of 'or the day on which a complete period of your tenancy expires next after the.........', to avoid precisely the problem you have stated. I wouldn't have done it if I didn't feel comfortable doing it. The problem lies with the excess of hubris from the man down the pub who 'helped' them in the first place.

Once they realised the possession order wasn't valid they should have just applied for another one.
£700 is a fair price for a possession order, and I expect your firm does more business because of it.