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Early Release fee from my 12-month tenancy agreement

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Comments

  • tbs624
    tbs624 Posts: 10,816 Forumite
    My view is that the LL is of course entitled to expect the OP to meet his reasonable costs in finding a replacement T. The OP has not said that he is not prepared to do just that. He has explained that the LA is used merely as a "tenant finder" rather than as a "manager" of the tenancy itself.

    Clutton - yes, we are generally bound by what we sign but, as you know, there is a grey area when contract terms are not definitive, and or may be deemed to be unfair.

    Notwithstanding that it is the T who wishes to break the contract, to ask a T to be contractually bound to a "fee of not less than £xx plus vat" for doing so is a nonsense because it's in effect an open ended fee, a potential "penalty" charge to the T rather than a cost which reflects the actions of a reasonable LL in these particular circumstances.

    The LL *should* have stated that he wished to use the services of x LA, whose fee would be the equivalent of one month's rent or perhaps "not more than £xxx plus VAT" , plus obviously the continuing rent payments until the new T moved in. The OP has already said that these are sought after properties and the LL is therefore unlikely to suffer a void.

    Some LLs are clearly able to function as reasonable human beings, capable of "real world" negotiation and others are not: some LLs are on power trips and incapable of reaching a compromise that will be fair to both parties.
  • N79
    N79 Posts: 2,615 Forumite
    OP - You may have covered this point but if so I missed it.

    Were you in private accommodation through personal preference or because of non availability of quarters at your current (previous) posting?
  • Note_of_Dis-accord
    Note_of_Dis-accord Posts: 21 Forumite
    edited 9 August 2010 at 10:49AM
    I thought I'd update this thread to mainly thank those who had helped and offered very valuable advice.

    To answer N79, I was in private accommodation through personal choice based upon an assignment that was very commutable to work; my work changed the goal posts and gave me no notice - I'm working in a better place but the domestic turmoil has been tough; first time it has happened to me!

    blackshirtuk - I did rent from the same LA

    To conclude, the LL was not interested so I went to the LA, with whom I have a very good relationship and I asked them what they meant by the minimum fee in the clause. They told me that it was the minimum fee they charge to find a tenant and each LL has their own rate. Without me asking as they understood my circumstances they changed the fee my LL would have to pay for replacing me at this address. They had a two fold view:

    1. It was extra cash as they had not expected this property to come back onto the market.
    2. They had 4 people very interested as it had been inadvertently marketed early.

    They are a good company but I didn't want to pay nearly £1000.

    My LL did nothing - in fact when I wrote to him (2 weeks ago) to formally notify him of my departure, I have yet to receive a reply; that may tell you a lot about the type of person I have been dealing with.

    My advice to others - make sure you know exactly what is in your AST, if unsure ask the LA. Always be prepared to negotiate. My wife and I very much felt similar to the view expressed by tbs624, ie trapped with an open ended penalty clause. Finally asking people on here has been excellent - so thank you to you all.

    I will be paying the minimum fee as stated in my AST agreement. New tenants follow the day after my tenancy finishes.
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