Fixture term contract

The_Libertine

Could I have some advice please? I moved into my house in November last year. My Assured Tenancy Agreement expired in May, so I'm on a periodical contract. I have a decent relationship with the letting agent. (who are also the landlords) They came around on Wednesday to inspect some repair work which was done, and today I have received a letter saying that they are prepared to issue me with a fixture term contract for a period of 12 months, at the same terms and conditions.

I'm assuming this is a good thing for me? I've always paid the rent on time, keep the place generally tidy, and don't give the landlord any grief, so I can see why they want me to stay.

How will going on to a fixture term contract affect me. What is in it for the landlord, and what is in it for me?

They've asked me to contact them to discuss it, but I want to find out a few facts from a third party before I agree to anything.

00ec25

benefits for you : you have security of tenure for 12 months, the rent is fixed for another 12 months

disadvantage to you: will you still need to be there in 12 months? it will cost you if you need to move out before 12 months. Rents may fall further and you can't renegotiate or move on to a different cheaper place

benefit to LL: they have a tenant for 12 months they did not have to incur costs in finding and can potentially recover costs if the T moves out early

disadvantage to LL: not many - you have proved to be a good tenant!


unknowns - is there a break clause?

Jowo_2

The good points about a fixed term contract is security of tenure for the next 12 months as about the only way that the landlord can definately get possession back early is if you default on rent for 2 payment periods. If you are certain you want to live there for the next full year and that something is unlikely to occur that makes you change your mind, that's a bit of peace of mind for you.

The downside is if you want to leave your contract early - fixed means that - and your personal circumstances are irrelevant, the contract is binding. Should you want to take up a job somewhere else for example, the landlord does not have to consent to releasing you early from it and if they do, will expect you to pay any expenses, such as advertising costs and admin fees, associated with an early surrender. Also, if rent levels fall, you are unlikely to be able to renegotiate your rent in that period (but are protected from an increase if the market rises).

It is also possible to have a 12 month contract with a break clause so that either party can change their mind halfway through so long as the correct notice is given.

If you remain a periodic tenant, this will just roll on indefinately until you give one months notice or the landlord gives you 2 months notice (timed to expire with the rental period). So the upside is that you aren't locked in for a long period and the landlord has to give you 2 months notice should they want the property back. Therefore there is a degree of flexibility but less security of tenure compared to a 12 month period.

So it really depends on what you want.

barnaby-bear

The_Libertine wrote: »

Could I have some advice please? I moved into my house in November last year. My Assured Tenancy Agreement expired in May, so I'm on a periodical contract. I have a decent relationship with the letting agent. (who are also the landlords) They came around on Wednesday to inspect some repair work which was done, and today I have received a letter saying that they are prepared to issue me with a fixture term contract for a period of 12 months, at the same terms and conditions.

I'm assuming this is a good thing for me? I've always paid the rent on time, keep the place generally tidy, and don't give the landlord any grief, so I can see why they want me to stay.

How will going on to a fixture term contract affect me. What is in it for the landlord, and what is in it for me?

They've asked me to contact them to discuss it, but I want to find out a few facts from a third party before I agree to anything.

Do they want to charge a fee?

IT's a FIXED term contract - it means your LL can't ask you to leave (unless there's a break clause) for 12 months but also that you will not be able to move for 12 months either (at the moment you only have to give 1 month and can go and the LL can give you 2 months) and if you do move you remain liable for the rent even if you don't live there.... it depends if you want to stay/know your job is safe enough to be able to pay the rent/how good is your LL at repairs (if hey know you are there for 12 months they've less incentive to do repairs whereas on a periodic you might walk)... what are rents doing in your area - your LL and LA are trying to lock you in to 12 months at the current rent. If you need stability and want to stay long term a fixed might be for you. The fact they are offering a fixed also suggests they've no intention to sell.

clutton_2

as a LL i like 12 months agreements AFTER an initial 6 monthly agreement has been seen to have worked well, it gives me security and it gives the tenant security

However, i would ask the LL for a 6 months break clause, because once you have signed a 12 month agreement you are committed legally to pay for that full term, whether you live there or not... A break clause does allow you to leave at the 6 months if you think your life circumstances may change

The_Libertine

Thanks everyone. I'm looking to stay long term, so it sounds like it's good for both parties.