AST to statutory periodic query

Out,_Vile_Jelly

My first ever thread started all by myself, and a very dull subject I'm afraid....

Thanks to these forums, I have learnt alot about the rental process from the knowledgeable and helpful posters on here. I've looked up on this topic, but can't find a specific answer.

My 12 month AST expires next month. I have been offered a renewal at the same rate, plus the usual Money For Old Rope LA fee (not as unreasonable as some I've been stung by in the past, to be fair). I have replied stating I would like to go onto a Statutory Periodic Tenancy. The response from the LA is that the LL doesn't want this, and that there are implications for my deposit (I don't have the paperwork in front of me, but from memory think it's held in the insurance based one).

What are the implications of my refusing to sign up again? I suppose the LL could serve notice on me, but that would be a bit silly on their part to lose a perfectly good tenant, risk a void and have to pay LA fees again, I'd have thought? And surely deposits in the proper schemes remain protected under Statutory Periodic Tenancies?

I've never rolled onto a periodic tenancy before, and want to be sure I fully understand this.

N79

Out,_Vile_Jelly wrote: »

What are the implications of my refusing to sign up again? I suppose the LL could serve notice on me, but that would be a bit silly on their part to lose a perfectly good tenant, risk a void and have to pay LA fees again, I'd have thought?

Indeed it would but having an irrational LL is the risk you take by not signing a new agreement with security of tenure.

Out,_Vile_Jelly wrote: »

And surely deposits in the proper schemes remain protected under Statutory Periodic Tenancies?

I believe that the LL may have to pay a renewal fee to some of the protection schemes (not DPS) but that is their problem, not yours.

BitterAndTwisted

It's no surprise to me and I daresay a lot of other posters on this forum that letting agents often don't know their as**s from their elbows. I believe this is the case where your deposit is concerned. Going from an AST to a statutory periodic does not entail re-registering the original deposit. it sounds like the agents are intent on getting another fixed-term contract signed so they can screw more fees out of you OR the landlord doesn't want to have to give you 2 months notice instead of one.

G_M

If you sign, yo have security for 12 months and cannot be evicted. On the other hand, if you decide to move, you can't as you are committed to 12 months.

If you don't sign, you'll have a periodic tenancy. The LL can give you 2 months notice at any time (and if he's really annoyed, he might). On the other hand
a) you avoid the renewal fees
b) you have flexibility and can leave early if you need to and
c) the LL probobly will keep you anyway as evicting you wil cost him a lot in lost rent between tenants, not to mention the costs of finding and checking a new tenant.

Call their bluff.

theartfullodger

The response from the LA is that the LL doesn't want this, and that there are implications for my deposit

Fine, we don't always get what we want: The LL will have a choice between (presumably) a known, reliable, regular-paying, non-wrecking tenant or a leap in the dark. I reckon LL will carry on. LA was bound to say they didn't like it as LA wants their fee..

As regards the deposit I doubt very very very much that rolling over into periodic has any implications as regards the deposit.

Hope it works out & the LL doesn't give you notice...

Cheers!

Lodger

adg1

Aside from your position, there are two things to consider here. What the LA wants and what the landlord wants.

The landlord may well want another fixed term tenancy as it offers him security for another 6/12/18 months. Remember you only have to offer 1 months notice when on a statutory periodic, to expire on a rental due date.

The LA may want another fixed term as they can then get the renewal fees from the landlord for another fixed term contract, plus your fee.

If it goes to periodic the LA will get nothing from either party.

Remember that, if you say no to the LA, and call their bluff as G_M says, the landlord may actually WANT a new tenant and a new contract. If so, you'll be moving out soon enough.

Have you contacted your landlord directly? If not, write to him (and phone as time schedules will be pressing) and see exactly what he wants. It could be that a periodic suits him too.

Try to negotiate the fees with the agent as well as contacting your LL.

Your deposit is fine, I think one of the schemes needs to be renewed each year but that'll be all.

Out,_Vile_Jelly

Many thanks for your responses. Until I came across these forums I had no idea such a thing as a periodic tenancy existed, and I would consider myself a reasonably well educated person! It would never have occurred to me that after the fixed term expired you could carry on, and I imagine many tenants are similarly in the dark- assuming that once they get the letter asking for £x00 that their only option is to pay up if they want to continue. I was described as the perfect tenant by my last LL, but flexibility is important to me (I like the idea of randomly being offered a dream job somewhere exotic...) so hopefully the LL will want to keep a reliable occupant.

My only nagging worry is that I want to be 100% sure that I do not automatically have to leave on the date at the end of my 12 months. As I understand it, I only have to leave if the LL serves a Sec 21 via the correct process?

N79

Out,_Vile_Jelly wrote: »

My only nagging worry is that I want to be 100% sure that I do not automatically have to leave on the date at the end of my 12 months. As I understand it, I only have to leave if the LL serves a Sec 21 via the correct process?

You only have to leave when a court issues a possession order against you for the property.

A correctly served S21 is a notice from the LL that they want possession (technically, it is a notice that they intend to seek possession). While you can chose to comply with the LL's request (and in most cases this is certainly the right thing to do to protect your reference etc) you do not have to and can wait for a court to award possession (which it will because as you are aware there is no defence to a correctly served S21 possession proceedure).

Out,_Vile_Jelly

Well, I just spoke to the agent- I was reassured that the new renewal will continue on the current terms of notice (ie not locked in for another 6 months). They did state that it's "impossible" for them to do Statutory Periodic, as the deposit scheme they use (My Deposits) can only offer protection to those on ASTs.

My inclination is to pay the fee for peace of mind, but investigate this claim as I think it may be misleading.

N79

Out,_Vile_Jelly wrote: »

Well, I just spoke to the agent- I was reassured that the new renewal will continue on the current terms of notice (ie not locked in for another 6 months). They did state that it's "impossible" for them to do Statutory Periodic, as the deposit scheme they use (My Deposits) can only offer protection to those on ASTs.

My inclination is to pay the fee for peace of mind, but investigate this claim as I think it may be misleading.

Check the paperwork carefully as the only way I can think of to do this would be to have a fixed period of 0 months which, in effect, would mean you are on a periodic tenancy anyway. Money for nothing I suspect. As a bonus, the new agreement would mean that your LL would be unable to seek possession for 6 months though.

Out,_Vile_Jelly

Well they want me to pay the admin fee without seeing the new contract which I think is a bit cheeky.

I've also just confirmed that My Deposits don't cover periodic tenancies. I think tenants should be given the choice of which scheme their money is held in, so they know about potential issues like this in advance.