Surrender vs Assignment of lease.....Difference?

arambol

I've split with my girlfriend and we have had to cut a tenancy agreement short. There was no break clause for a further 6 months so we have had to ask the landlords to find new tenants.

They agreed and had their estate agents find new tenants. Fine so far.

However I understood that this was an "Assignment of the Lease" and while we would be released for the rent liability we would still be liable for the 10% agents fees that the landlord paid upfront until the end of the lease (6 months).

However the agents are now saying as we have Surrendered the Lease and "any other breach by the Tenant of the Terms of the Agreement" that we are liable to loose all the deposit. However this only applies for losses to the landlord, and as far as I can see they aren't making a loss. They have new tenants filling our tenancy, no gap in rental income and potentially double the 10% commission from us and the new tenants.

The deposit is twice as much as the 10% landlord contribution so it is a concern.

Can they do this? Initially they said we would be only liable for the 10%.

Thanks guys.

arambol

This is what it says on the agents website. Nothing about keeping ALL the deposit.

"The primary liability is for rent until the end of the contract or its break clause point.

If the landlord agrees to re-market the property and once a new tenant is found, then your liability will be reduced to covering the landlord's commission and any other expenses from when the property is re-let. Payments would be calculated on a pro-rata basis for the unexpired term of the contract".

G_M

The LL is under no obligation to release you from the contract. You signed the contract and could be held liable for rent till it ends in 6 months. If he agrees to early surrender (note it is the landlord's decision, not the agents) it is likely he will want to cover any associated costs.

Such costs could include gap in rent (you say none), marketing/advertising, agents fees, cleaning, etc.

You have not breached the terms of the contract as you have reached a mutual agreement to surrender.

The deposit should therefore be returned to you, less the costs above, any rent outstanding, and an amount required to cover any damage (if any).

Write to the LL direct and copy the agents confirming your willingness to pay his reasonable costs but requesting your deposit be returned.

I assume you have written confirmation of the LL's agreement to surrender, the date this will take effect, and the date the new tenants take possession. If not, get it!

arambol

Yes the landlord has agreed, new tenants move in on 23rd April. No gap in rent. No damage (they have already checked) and no cleaning fees. I will pay for professional cleaners etc.

I have the written agreement of the date of surrender.

G_M

Then I see no problem. Which scheme is the deposit with? As soon as you leave, contact the scheme (check its procedures here) requesting your deposit. They should contact your LL to confirm and then release it to you.

In the event of arguement there is a dispute process. Neither the LL nor agents can unilaterally decide to keep the deposit.

arambol

Not sure which scheme the deposit is with. The agent is Foxtons.

So the estate agents are just trying it on.

Seems cheeky as initially they said the 10% agent fee liability, now they expect to keep the whole deposit (ie twice the amount).

Fire_Fox

Write and ask for a breakdown of the costs incurred and chargeable to you. They cannot withhold your deposit without justification, deposit protection scheme will not permit that.

G_M

arambol wrote: »

Not sure which scheme the deposit is with. The agent is Foxtons.

So the estate agents are just trying it on.

Seems cheeky as initially they said the 10% agent fee liability, now they expect to keep the whole deposit (ie twice the amount).

You should have been told which scheme within 14 days of paying your deposit. Contact each of the scheme on the link I gave you to check which one it's with. If none, tell us as the LL is breaking the law.

arambol

According to the tenancy agreement my deposit is being held by the estate agents. They are acting as the "Stakeholder".

arambol

This is what they say on their webiste:

"Your deposit will be protected by the Tenancy Deposit Protection Scheme.

In line with legislation introduced in April 2007 all deposits being paid by a tenant for an Assured Shorthold Tenancy must be registered with a recognised deposit protection scheme within 14 days. Where appropriate, Foxtons will register the deposit on your behalf".

I will check which one.