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Dispute with future Landlord. Please share your views

Hi,

Basically the story is, me and the landlord HAS SIGNED a one year contract with a 6-month break clause to rent a property from the 12th Feb to the 11th Feb of next year. I paid 6 months rent in advance (because I have no UK gaurantor and I am not a UK citizen) on the 9th Feb which is £9450. Then on the 11th (one day before tenancy can you believe this!) the agent called and told me that there has been a mistake, the current tenant at the property has actually paid the rent up til the 23rd Feb and therefore he will not move out before then. Which means I can't move in on the 12th as agreed in the contract. And the contract has to be amended to start on the 23rd Feb.

Now the problem is that I can only stay at my current place until the 20th, and have to find place to stay until 23rd. I asked my current landlord if I can extend, he said yes with additional rent of £165. Do you think this extra rent is the new landlord's responsibility or mine? Also has she broken the law of the contract since both of us signed accordingly?

Comments

  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 16 February 2010 at 12:44AM
    There is some ambiguity about whether a binding contract exists when the lease is signed, or whether it becomes binding when the money, AND keys, are exchanged.

    However reading this thread here, I believe you have a strong case. Especially as in your case (unlike the one I refer to) there is clear evidence of intention for the contract to proceed even if at different dates.

    Please note the forum I'm referring you to, and the specialists there, are more authoritative than we are here (though there's some pretty hot advisor's here too!)

    So yes, I think you could claim your costs due to breach of contract.

    Morally I think you have an even stronger case, so I would hope the LL would be sympathetic to your position and would refund you the £165, though some might argue that you should not expect to live rent-free from 12th Feb till 23rd (assuming a new 12 month contract is signed from 23rd)
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 16 February 2010 at 12:46AM
    The landlord has to make arrangements for you to stay elsewhere (e.g. a hotel, or another property they have that's suitable/vacant). This is the landlord's problem to sort out because the agreement is signed by you both.

    The landlord should therefore be glad/grateful that you have got a solution ... and it'll cost him £165.

    In answer to the two questions:
    1] New landlord's responsibility
    2] Yes, broken law, but so long as you get your £165 and he finds you somewhere for 20th to 23rd that should settle it.

    An alternative, better for you, is if you can get the landlord to refund you the £9450 pro-rata, for the dates 12th to 23rd of February which is 11 days = £284.79 and you pay the £165 out of that and use the rest to book yourself into a hotel or somewhere
    Maths: http://www.google.co.uk/#hl=en&source=hp&q=9450%2F365*11&btnG=Google+Search&meta=&aq=f&oq=9450%2F365*11&fp=33a9a577caa4e7cb
  • The tenancy agreement you have signed is I believe binding because it has become a contract. Just signing an agreement is not enough to make it a contract (unless it is witnessed as a deed) - you need to have 'consideration' too, which is a thing of value which passes between the two parties. This is why you hear about people buying bankrupt companies for 1 pound plus debts!

    The fact that you have paid the money over is a pretty big lump of consideration.

    Now I don't know the full ins and outs - and landlordzone should give you a definitive answer - but I believe that the new landlord is duty-bound to offer you alternative accomodation of a similar quality whilst the currenct place is uninhabitable by you.

    Be careful here - if the old tenant is actually digging their heels in they might be in for a couple of months.
  • chappers
    chappers Posts: 2,988 Forumite
    You definitely have a binding contract here as you have already handed over your deposit and rent, your new LL is obliged to house you from the 12th of FEB, I would be writing to him pointing this out and at the very least asking him to pay the rent you are incurring.
    As POP says there could be trouble if the current tenant refuses to leave.
  • Yes, WRITE and send your letter to the letting agents by Recorded Delivery and keep a copy of it and the documentation from the Post Office for your own records.
  • adg1
    adg1 Posts: 670 Forumite
    Oh dear clever letting agents!

    In this situation you have a legally binding tenancy agreement. CAB and trading standards list a 'secured property' via an estate agent as when both contracts are signed and witnessed and the full deposit and 1st months rent have been paid in full, cleared funds.

    In this instance this is the case and hence the landlord has a legal obligation to house you in comparable accommodation until such time that you can move in. The offer from your current landlord is very lucky for your future landlord as £165 is cheap compared to 3 nights in a hotel and all meals etc.

    Do everything by recorded delivery and keep copies of everything yourself for your records.

    Is the current tenant definitely leavig on the 23rd? If not there is some proper issues for you and your future landlord. I woudl speak to the EA and see if they can get a Deed of Surrender from the current tenants, just to be sure.
  • Nawin
    Nawin Posts: 68 Forumite
    edited 17 February 2010 at 2:59AM
    Thank you for all your advice, truly appriciated.

    By the way, I made a minor typo in the first post, I actually asked for the current landlord to extend my stay until the 24th. So that I have time to move my stuff and also have the property professionally cleaned on the 23rd, before check-out on the 24th morning.

    My current situation is that the first contract still stands and I haven't signed the amended contract. Moreover the LL has agreed to pay the extra rent from the 20th to the 23rd but would refuse to pay up until the 24th. The extra day is essential to make time for the "man with the van" and cleaning services.

    So LL pays £124 and I pay £41 for the rent from 20th to 24th morning, fair? I haven't agreed to it yet. But I think the LL should pay the full £165 because before I had 7 days to complete the move over.

    An alternative, better for you, is if you can get the landlord to refund you the £9450 pro-rata, for the dates 12th to 23rd of February which is 11 days = £284.79 and you pay the £165 out of that and use the rest to book yourself into a hotel or somewhere
    Maths: http://www.google.co.uk/#hl=en&sourc...a9a577caa4e7cb

    I have already told the LL about the pro-rota =)
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Where do you live.

    4 nights(2bookings) in a holiday inn on the 2-4-1 might be and alternative they go as low as £15pn in the express.

    http://forums.moneysavingexpert.com/showthread.html?t=1535105&highlight=holiday+inn

    Depends how much stuff you need to store.
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