Admin charge to renew lease

poppysarah

Fee for what happens in law? That's even more outrageous. Everyone being hassled by these fees should write to watchdog and their MPs. It only takes a few complaints to watchdog to get them looking into it further. This needs stamping out. It isn't up to tenants to make up the cash flow year on year of letting agencies. They take a % of the rent for doing their job already.

PJD

franklee wrote: »

Sorry but if you've just gone onto a periodic tenancy why should one of the above apply. I do not see how you could have known that the agent would call doing nothing to allow a periodic tenancy a supplementary lease, frankly it isn't. I would ask them to explain which of the above applies to your case and why. Do you have an extended period, a renewal or or a periodic tenancy? You really do need to understand what you've got anyway. Did you ask for a new lease? Did they offer and you agree? What exactly happened. If they just wrote telling you that you have a supplementary lease without your agreeing then I don't see it stands. If you are on a periodic tenancy what is the relevance of the another year you mention here as a periodic tenancy just runs on till either side gives notice, there is nothing yearly about it:

Hi,

thanks again for your comments, - they wrote to me and asked me if I am in agreement with a 3% rent increase, and said "if you are in agreement with the increase we will issue a Supplementary Agreement for a further 12 months. One month's written notice must be given on or before the 2nd day of the month if you wish to end the tenancy before the end of the extended period. If your Landlords wish to regain possession of the property before teh end of the extended period they will give you two months written notice on or before the 2nd day fo the month".

I rang them and told them that i would agree to pay the extra 3%.


So maybe the supplementary agreement is because the rent changed for another 12 months? In which case, it will make my case weaker?

PJD

I've decided that I will probably pay this fee, and put it down to #1 administration costs in the same way that you have to pay a car insurance company £20 admin fee to change something small on the policy. #2 Experience.

Anyway, i've decided to get some more clarity before i part with my money

"
Can you please break down the costs involved for me? As you are aware, there is nothing that needs to be done by either yourselves or myself after the first 12 months tenancy has expired, as Period Tenacy happens automatically (by law), so I am still confused as to what exactly I am paying for. Also, can you clarify exactly what terms are “Supplementary” (in regards to my new agreement) to the Housing Act 1988?

Also, you’ve stated in your lettter dated 24th July 2008, that the Supplementary Agreement extends the tenancy for a further 12 months, my understanding is that a Periodic Tenancy will run until either the Landlords or the Tenant/s give notice, so I do not understand what terms are “yearly”?
"

Big thank-you to tbs264 for that big post, - although I haven't taken you up on your suggestions is clarified my options well, and I do not think £30 is worth the the hassle of the firght and facing a possible eviction.

In future I will remember to state that I am happy with a periodic "to avoid unnecessary paperwork/costs" - as you point out.

Cheers all

poppysarah

I'm a bit sad you've given in but understand why.

I suspect there'll be more fees invented by letting agents in the future to fill their pockets.

PJD

I've mainly given in because #1 I agreed to pay this supplementary fee and #2 they incurred *some* admin costs stating that my rent has gone up. I know that's not much, and as I say, i've asked them to clarify what the costs are.

One upside however is that I have reported this lettings agency and this particular charge to the Office Of Trading Standards. They said that if they get enough complaints they will look further into it.

PJD

I have had a reply from the letter I sent (above):


The cost of £29.38 is broken down as £25 administration fee for the preparation of the paperwork and £4.38 VAT. I enclose a copy of the applciation form which yo usigned on 6th July 2007 agreeing to this fee.

We prepare Supplementary Agreements so that we and the landlord are aware of the situation as to the tenant's intentions to stay or go after the initial period completes. If this is a problem for you, please disregard the fee and we will not issue any future paperwork in connection with renewals.



What would you reply to that?


Just to double check, am I missing out on anything if I agree for them not to issue any more paperwork in connection with renewals? There isn't any renewals now is there, as the Period will go on year on year until one party gives notice?

redcar_2

I'd say result!

You won't be missing anything. There is no other paperwork needed for the periodic tenancy.

By paperwork I think they mean their letters!

PJD

I just replied with a quick; Thank you for your letter dated

I am aware of when a fixed term turns into a periodic tenancy, so I hereby confirm that I do not wish to be issued with any further “Supplementary Agreements” which clarify this roll over which happens automatically by law.

Yours sincerely

BridgetJones_2

PJD wrote: »

I just replied with a quick; Thank you for your letter dated

I am aware of when a fixed term turns into a periodic tenancy, so I hereby confirm that I do not wish to be issued with any further “Supplementary Agreements” which clarify this roll over which happens automatically by law.

Yours sincerely

What happened next? I'm in the same boat at the moment but my useless LA is trying to charge us £60! I can't find my blooming contract to check whether I agreed to it. Grr :mad:

skintandscared_2

Our letting agents must have been a lot fairer. They said that we would be charged £50 if we wanted to renew our 6 month tenancy agreement, but there was no charge to just carry on as a rolling agreement with a month's notice either side.