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AST - ultimatum - sign up or leave

Hi there, I'm wondering if I can pick your brains for a moment.

I'm currentley renting a house on a 6 month fixed term AST that is due to expire in August 08.

This week I recieved the 2 month notice period from our letting agent. Included with the letter was a form giving us two options - sign up for a new agreement (and pay the agents a sum of money) or vacate the property.

When we first signed up for the house the letting agents said that after the initial 6 month period the contract would begin rolling on a month by month basis (we actually have this in email correspondance).

I'm assuming that when they say sign a new agreement they mean sign for another 6 months.

Is what the agents have done legal?

Whilst we have no issues staying for another 6 months, we would much rather prefer the flexibility of a rolling contract and our correspondance with the agents (regarding rolling contracts) was a big factor in us signing up for the original lease.

Any advice would be greatly appreciated.
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Comments

  • clutton_2
    clutton_2 Posts: 11,149 Forumite
    they cannot force you to sign another 6 months agreement, but, they can give you 2 months notice at any time after 2 months before the end of the 6 months are ended, and at any time if you stay on with a Periodic Contract after August.

    they just want a new tenancy signing fee
  • tbs624
    tbs624 Posts: 10,816 Forumite
    LAs often have a vested interest in getting you to sign up to another fixed term in that they get to charge both you and the LL a renewal fee. They may also try passing on the cost of re-registering your tenancy deposit for the new agreement.

    You could just drop them a friendly note to say that you'd be happy to stay on under a periodic agreement as originally discussed. Sometimes these letters are generated by poorly set up computer systems and signed off by the least experienced member of the office who simply has no idea of what may or may not have been discussed previously.

    If you have the LL's name & address, which you are entitled to have, you could also copy your note to him/her as LLs frequently have little idea what their LA is up to. If you've been a good tenant they won't want to lose you.
  • franklee
    franklee Posts: 3,867 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    This week I recieved the 2 month notice period from our letting agent. Included with the letter was a form giving us two options - sign up for a new agreement (and pay the agents a sum of money) or vacate the property.

    Can you just clarify what you mean by "I recieved the 2 month notice period from our letting agent". Do you mean you were served with an S21 notice requiring possession and that this was in with the form? If so then notice has been served.

    Like tbs624 I would email them with a copy of the previous discussion about allowing a periodic tenancy and copy your landlord and ask for periodic. But if notice has been served you need to get written agreement that it's withdrawn if you remain on a periodic tenancy otherwise you are in a position of uncertainty as to future notice you'd get. I'd say an S21 isn't valid if it came with an offer of renewal or if you are given written permission to remain afterwards but apparently not everyone agrees!
  • Hi thanks for the response. To confirm this is what we recieved last week.

    * A letter saying as a matter of procedure they are serving notice and they will happily draw up a new agreement if we want it
    * The S21 notice requiring posession
    * A form that gives us an option to vacat the property or renew our agreement for a fee.

    We see ourselves staying here for the next month but don't want to be forced to stay in six months blocks. Is it legal for them to force this on us without giving us the option to go rolling?
  • barnaby-bear
    barnaby-bear Posts: 4,142 Forumite
    Hi thanks for the response. To confirm this is what we recieved last week.

    * A letter saying as a matter of procedure they are serving notice and they will happily draw up a new agreement if we want it
    * The S21 notice requiring posession
    * A form that gives us an option to vacat the property or renew our agreement for a fee.

    We see ourselves staying here for the next month but don't want to be forced to stay in six months blocks. Is it legal for them to force this on us without giving us the option to go rolling?

    sadly sounds legal BUT your contract should have your LLs name + address on it and even if it doesn't unless fully managed (i.e. LA essentially the LL) they are legally obliged to supply it. The LL and you probably have to pay contract costs for what they are suggesting and possible to recheck in the deposit to a scheme (shady area).... at the end of the day if the LL was happy to let you go periodic (I wouldn't mention it's for the flexibility of moving as less incentive to keep you happy - more you don't want to be doing this every 6 months) - the LL has the ultimate say as they employ the little LA monkeys.
  • SouthCoast
    SouthCoast Posts: 1,985 Forumite
    they just want a new tenancy signing fee

    Agreed.

    I refused to sign mine and have been on a Periodic AST for two years.

    It takes greedy/stupid letting agents out of the contract.
  • poppysarah
    poppysarah Posts: 11,522 Forumite
    Refuse.

    Good tenants are hard to find.
    There's no legal benefit for you in signing it.
  • zebulon
    zebulon Posts: 677 Forumite
    SouthCoast wrote: »
    I refused to sign mine and have been on a Periodic AST for two years.

    It takes greedy/stupid letting agents out of the contract.

    sure, but were you served a notice to quite though?

    the best option here i think is to contact the LL - to say that they might end up with void because of the LA wanting to sign new lease with you when you were expected to roll into periodic and LA giving you notice to quite (LL probably does not know that!)

    so it's all very well to refuse a new AST - but to refuse to moved if you've been given proper notice (S21 etc), that's another matter!
  • dhassen
    dhassen Posts: 759 Forumite
    LL's and LAs are gagging for good tennants..... call their bluff... I can't see them willing to ask you to leave and risk having the property empty and losing money. LAs are just being greedy !!!!!!s
    Official DFW Nerd Club - Member no. 784 - Proud to be dealing with my debts
  • Doozergirl
    Doozergirl Posts: 34,082 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Are these people a member of ARLA? I think it's dreadfully underhand tactic to only offer two options but then to put a Section 21 in as well is tantamount to blackmail IMHO. The only point to serving official notice and then offering a six month tenancy in the same letter is to extort money from you.

    I'd speak directly to the LL and then report the LA to ARLA.
    Everything that is supposed to be in heaven is already here on earth.
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