Breaking Tenancy Agreement

deggs_2

We are currently renting a property but have taken an opportunity to buy a new house. We are cntracted to rent the property for another 5 months but would to break this contract. What are our rights? We accept that we should pay something to the landlord in respect of this as we want to break the contract. We have also asked to negotiate the rent to a mutually acceptable level. However, they are currently holding us to the 5 month period at the full rent.

Could we simply stop paying rent? I understand we would lose our deposit but is this the only implication?
Financially we may not be able to meet both rent and mortgage payments.Any thoughts on how we can resolve this?

Anihilator

No,

The landlord could take you to court for all his losses( rental loss, legal costs, admin etc ). He would have to mitigate his losses though (i.e seek a new tenant).

Your best bet is to assist him with this and try and speed this up and then you are only legally liable for the rent til a new tenant moves in. Sadly I think in this case it could be near enough 5 months.

rsykes2000

deggs wrote: »

We are currently renting a property but have taken an opportunity to buy a new house. We are cntracted to rent the property for another 5 months but would to break this contract. What are our rights? We accept that we should pay something to the landlord in respect of this as we want to break the contract. We have also asked to negotiate the rent to a mutually acceptable level. However, they are currently holding us to the 5 month period at the full rent.

Could we simply stop paying rent? I understand we would lose our deposit but is this the only implication?
Financially we may not be able to meet both rent and mortgage payments.Any thoughts on how we can resolve this?

Your contract is binding on both sides. If you can persuade him to take a new tenant with you paying for all the marketing, this could take months and you would be also liable for any of his costs. It really is something you should have looked at *before* buying a house.

cyberbob

I could be wrong but i'm sure I read somewhere that the landlord has to make efforts for a new tenant. I'd make an appointment for CAB they should be able to give more accurate advice it may depend on the type of tenancy as there may be a legal way out

rsykes2000

cyberbob wrote: »

I could be wrong but i'm sure I read somewhere that the landlord has to make efforts for a new tenant. I'd make an appointment for CAB they should be able to give more accurate advice it may depend on the type of tenancy as there may be a legal way out

Not sure if that is correct or not, but the landlord shouldn't have to do anything, it is the tenant's decision to try and get out of the legally binding contract, so IMO they should have to do any work and pay whatever is necessary. Put yourself in their place - why should the landlord put him/herself out ? They haven't done anything wrong.

Anihilator

rsykes2000 wrote: »

Not sure if that is correct or not, but the landlord shouldn't have to do anything, it is the tenant's decision to try and get out of the legally binding contract, so IMO they should have to do any work and pay whatever is necessary. Put yourself in their place - why should the landlord put him/herself out ? They haven't done anything wrong.

The landlord would have to try and mitigate his losses.

However he can then sue for any residual loss after doing so.

neilmcl

Anihilator wrote: »

The landlord would have to try and mitigate his losses.

However he can then sue for any residual loss after doing so.

That would mean that the landlord couldn't sue the OP for the full remaining rent if he managed to get a new tenant in. It doesn't mean the landlord has an obligation to find a new tenant though.

missymugwump

Have you checked your tenancy agreement for any break clause ?

You are liable in full for any shortfall the LL suffers if there is no clause,have you offered him two months notice as it were rather than just saying were leaving
How much notice are you giving him ?
Your best bet is to try and help him find a tenant ie..be helpful over viewings etc..

You don't want to end up in court

neilmcl

neilmcl wrote: »

That would mean that the landlord couldn't sue the OP for the full remaining rent if he managed to get a new tenant in. It doesn't mean the landlord has an obligation to find a new tenant though.

Actually, I'm wrong. The landlord does have a duty to try and cover his losses by trying to re-let the property. I suppose it'll depend on how hard he tries though.

Anihilator

I'd imagine it would depend on them.

If they were a full time letting agent then quite a bit, if its a one off landlord then an ad in a paper probably would do.

N79

The LL probably (almost certainly) does not have to mitigate losses. This comes from the case of Reichmann and Dunn v Beveridge and Guantlett (2006). This was a commercial tenancy case (and hence the amounts involved were sufficient for the Ts to risk the 10000s pounds in taking the case to appeal) but there is no reason to believe that the courts would apply a different test or standard to residential tenancies (any T wishing to force a LL to mitigate would have to provide such a reason).

OP - you are liable for the rent of the full fixed period of the tenancy to your LL unless you negotiate a lower amount.