Rolling Contract query and Letting Agent fee

psyduck

Hi

I'm nearing the end of a 6mth tenancy agreement with a letting/estate agent. I'm possibly looking to stay on for an extra couple of months which my landlord is happy for us to do a rolling contract. The letting agent has wrote to us to ask what we want to do in terms of renewing on 6, 12mths or other. He has indicated that if tenancy is granted, a legal fee of £50+vat is payable.

Why would I have to pay a legal fee to extend my contract? I'm assuming that they'll be charging me £50 just so that I can extend by a couple of months. My view is on it that after the original fixed contract, I would be entering a periodic contract of which by law I'd have to give 1mth notice, landlord has to give 2. As long as I do this, I can't see why I have to pay this legal fee. I'd be grateful if someone more experienced could give me some advice/legalities on this.

Thanks

westv

If your tenancy goes periodic (on a month by month basis) then it will cost nothing.

psyduck

westv wrote: »

If your tenancy goes periodic (on a month by month basis) then it will cost nothing.

Many thanks for replying. Unfortunately it says in our contract with estate agent that the cost of any renewal tenancy agreement will be £50+VAT and borne jointly by landlord and tenant.

We wasn't planning on renewing our contract as we were only planning on being here during our fixed term. As it happens, we're likely to only want to renew another month (maximum 2mths). I'm not happy however if I renew for a month (another £50) and then circumstances mean that we need to renew another month (another £50).

Seems ridiculous as what legal work do they need to do for this £50 seeing as it will just go on to a rolling contract anyway.

Anyones help on this matter or if they've been in this circumstance would be much appreciated.

Thanks

poppysarah

Periodic isn't renewing. It's a process that happens, naturally and legally.


Thread here about whether this sort of charge is unfair and should be banned.
http://forums.moneysavingexpert.com/showthread.html?t=2412571

They're taking away your legal right to go periodic on your tenancy - by not offering you this option.

G_M

Many thanks for replying. Unfortunately it says in our contract with estate agent that the cost of any renewal tenancy agreement will be £50+VAT and borne jointly by landlord and tenant.

As explained you are not renewing your contract. You are continuing the existing contract on a periodic basis.

No fee.

clutton_2

just say no

tbs624

Some LLs and LAs have little knowledge of Housing La. - tell the LL (in writing) that once a Fixed Term AST has expired the Housing Act 1988 allows for a Statutory Periodic Agreement to arise, under which all the terms of the original Fixed Term remain in force except for any that "determine" the contract ( ie fix a date on which it would end) You as the T have to give the LL one month's notice, and s/he has to give you two months' notice, both to tie in with the rental period. If your original Fixed Term ends on say the 15th of the month, then your rental period (if paying monthly) would run from 16th of one month to the 15th of the next

You will still get idiot LAs who ask a T to"come in and sign your periodic agreement"...........

G_M

You will still get idiot LAs who ask a T to"come in and sign your periodic agreement"...........

Not so idiotic if they get to charge a fee though...

adg1

poppysarah wrote: »

They're taking away your legal right to go periodic on your tenancy by not offering you this option.

What about the landlords legal right to a new fixed term agreement?

Just for the point of argument, if the landlord actually wants a new fixed term agreement as it offers him more security of tenure, then maybe, just maybe, the LA are acting on his wishes and in his best interests by getting OP to take a new 6/12 month etc agreement.

OP hasn't mentioned if they even know what the LL wants to happen. If the LL wants a new fixed term agreement rather than the risk OP can leave with just 1 months notice leaving him without a tenant and income then that is his right too.

You may find that the LL, via the LA, will offer a notice to quit to OP if this is the case. Then OP will have to find a far higher admin fee than just £50.

Just wanted to put the other side across as this board in general is very Tenant focussed.

tbs624

adg1 wrote: »

What about the landlords legal right to a new fixed term agreement?

Just for the point of argument, if the landlord actually wants a new fixed term agreement as it offers him more security of tenure, then maybe, just maybe, the LA are acting on his wishes and in his best interests by getting OP to take a new 6/12 month etc agreement.

Agreed.

However,

adg1 wrote: »

Just wanted to put the other side across as this board in general is very Tenant focussed.

....that'll be because the site is about "consumer revenge" and in a T/LL relationship its the T who is the consumer.

Planner

adg1 wrote: »

What about the landlords legal right to a new fixed term agreement?

Easy - The landlord has no legal right to a further fixed term, as there is no law which says the tenant must sign a further fixed term after completion of the previous fixed term.