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Landlord wants to increase rent by 35%!!

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Comments

  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 1 November 2011 at 11:55AM
    I signed a doc that the landlord provided when I moved in which states:

    "The T&Cs of the amendment to this tenancy have been agreed between the landlord and the tenants, subject to any variations set out below, and are in accordance with the T&Cs of the original tenancy agreement.

    Date 01/09/11 until 17/01/12

    rent £1,300

    deposit £1,300 being held by the landlord from the previous tenancy

    other conditions - 1 month notice to terminate, with no minimum period

    All other T&Cs of the original tenancy agreement remain unchanged."

    Is that valid?
    I'm afraid (for th landlord!) this document is a piece of ****!

    The original tenancy (was it 12 months? perhaps 18 Jan 2011 till 17 Jan 2012?) was a contract betwen the landlord and the named tenants on that contract. It IS possible for one or more of the original tenants to assign their contract obligation to a new tenant (ie you) but this

    a) needs the permission/agreement of all tenants and landlord and
    b) must be done via a deed of assignment (see here). Note also that to be valid, a Deed must always be witnessed by someone independant.

    This does not seem to have happened. So the document you signed has probobly no legal force (I say probobly because judges are never 100% predictable!).

    What does this mean?
    1) the original tenant(s) is still bound by the contract and can be chased for non-payment of rent if there are arrears
    2) you can NOT be bound by the contract and chased for non-payment of rent if there are arrears
    3) the original tenancy is still in force, with the original start/end dates, and the same original fixed rent. So the rent cannot be increased till the fixed term ends (jan 17)
    4) if the LL wishes to increase the rent from Jan 18 he can offer you all a new Fixed Term tenancy at the new rent. You can agree/sign or not. If not, you can
    a) move out or
    b) stay, on a monthly Periodic tenancy at the old rent.

    If you stay, the landlord can
    a) do nothing or
    b) give you 2 months Notice or
    c) issue a notification of rent increase (the one he's sent now is invalid). This must either be in accordance with the current tenancy terms (does it specify how/when rent can be raised and by how much? CHECK!) OR by issuing a S13 Notice.

    5) the deposit held by the LL is the original tenant's deposit, held in his name it seems by the deposit scheme.
    6) your own deposit payment is simply a 'gift' you gave to the outgoing tenant. However this document you signed implies that the landlord believes he holds your deposit (even though legally he does not) so he might return it to you at the appropriate time

    How/when did the notification of the rent increase come and what date was given for it to start?
  • Interesting. I suspected it was not fully legit, but stupidly as was moving in with a friend who has been in the property for 5 years trusted his word that it was all above board. Don't think he knows much better though.

    So basically the 'good' news is I'm not actually tied into the house in any way, the worse news in I have no claim on the deposit...? In that case, if I decide to move out anyway, would it be a good idea to withhold my last month's rent as insurance against not getting my deposit back? (seeing as I'm moving out anyway, he can't kick me out and I can't be pursued for it?)

    Also please could you clarify with point 4) then point 3) within that - is the reason this notice of rent increase is not valid, because the landlord has not issued it to the 'current' tenants (of which I replaced one?).

    The notification came via email yesterday (supported by 2 valuations from estate agents) and he has proposed increasing it by making us sign a new AST starting when our current one ends on 17 January.
    plus ça change........
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    If he is simply offering you a new fixed term tenancy to start on 18th Jan, then that is fine. It is an offer - nothing more. You can agree, and sign a new contract when he presents it to you, or you can decline. No one is holding a gun to your head to make you sign a new contract at the new rent.

    If you decline, the landlord has the options I listed. Of course, tactically, you may wish to 'delay' rather than refuse, so that he does not issue you with Notice. That way you gain time.
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