Stuck in a rent contract. What happens now?

GroovyGran

Hi, I was wondering if anyone has any tips to help us?
We are renting with a private landlord. (2 years now. We lost our morgaged house so had to take what we could, but have had our name down with our local housing for the same amount of time.
I have mobility issues, so was waiting for a ground floor property. We have just recieved an offer for a property which we want to take. But our big problem is that our current landlords Agent, said we have to carry on paying rent until the 12 months contract ends! Unfortunatly this was only just renewed in October, he said we can leave, but will have to still pay 75% of the rent monthly. (something called a break clause) I am on a state pension and my husband is on long term sickness benefit. We have no savings, so there is no way we can afford to pay 2 lots of rent! We have been in touch with Citizens Advice, who told us to contact shelter. They said we qualify for Legal Aid and we have an appointment with them in a couple of weeks. This is making our lives miserable. Our daughter has rented a few places privately in the past, but has been lucky enough to have been released from the contract on every occasion. We can't speak to the landlord first hand as we have to deal with the agency? Does anyone know what will happen now, or have any tips to help us? regards, Linda

G51shopaholic

You really shouldn't have signed a new 12mth contract if you were waiting on an offer from the housing Association. It would have been better for you to have refused the renewal and went month to month.

That said, you may have a way out if your Landlord/Landlord Agent didn't serve you with the correct paperwork. Did they give you an AT5 notice BEFORE they got you to sign the contract?

I would give the landlord/Agent written notice of your intention to leave the property. It would be good if this was a few days after you took posession of the new house to give you time to move your stuff.

The landlord/agent maybe entitled to claim rental from you for the remaining period but they should remarket the property and once a new tenant moves in your liability for the rent will end. But if NO AT5 or an AT6 - sorry worked in a letting agency in Glasgow for over 7years but not worked for 4 year due to Breast Cancer so my brain is a wee bit mushy. I'm sure its an AT5 - this establishes that the property is being let on a Short Assured Tenancy and MUST be given to the tenant BEFORE the lease.

Good luck

arbrighton

Unfortunately, you have entered a contract which obliges you to pay for the term that you agreed. This is usual and it is your daughter's experience that is unusual I'm afraid.
Your agent is obliged to give you contact details for your landlord (i.e. their actual address, not just c/o agent) and you could try to appeal to their better nature, or perhaps offer to pay advertising costs and a small percentage of the rent, or give up your deposit but they are in no way obliged to do this

dancingfairy

Normally I think a break clause means you can give your 1 months notice but it can't expire before 6 months is up -so if you give your notice before 6 months is up you're stuck for 6 months, if after 6 months then you have to serve out your notice. Note that in terms of giving notice it normally runs from rent date to rent date.
The only other way out of the contract is to negotiate - some landlords will allow tenants to walk away but with conditions such as they pay for advertising costs and pay until a new tenants is found but this is very much up to the landlord - if they say 75% rent then that's up to them
The other options is of course to take the council flat, move out of the flat you are currently in and wait for the landlord to take you to court which obviously is a risky strategy.
You need to get hold of the actual landlords name and address from the agency (they have to give you this by law I believe) and write to the landlord and appeal to their better nature.
Best of Luck
df

bris

An At5 is Scottish law and doesn't apply to England and Wales, is the property in Scotland?

You could just give notice when the house offer comes through and insist they re let it, the worst that can happen is they bill you until a new tenant is found, if it's a good area then it may be a quick re let.
Insist you have no money to pay the rent and they will act quick, because no LL likes void periods. The worst case after that is they take you to court, but a court will give you time to pay.
You have to weigh up what is more important, a new house for life with the housing assosiation, or another few miserable years at the mercy of a private LL who could serve you notice after the contract is up.

Elvisia

My landlord was a complete a**e who let himself into my flat when he liked, and used to leave the windows on the ground floor open which would have null and voided my insurance. When I used to complain I got the longest emails treating me like a child, asking why I was complaining. I went to the Law Society who were able to lay down exactly where I stood legally - I didn't realise how he was breaking so many laws. Although I could have fought it and left early we agreed I would leave early on the condition I found a new tenant. It was very easy, flats go surprisingly easily. Would that help your case if you offer to get in a new tenant? Do find out exactly whether he had broken any rules and regulations, and you can write this in a formal letter to him. I completely understand how stressful this is.

GroovyGran

Thank you for all the reply's. We had no choice but to sign a new contract. They don't do month to month, or even 6 months. We were allowed to take out a six month contract only on the first one, in case we didn't like it. We will just have to see what the legal advisers have to say. But I fear it will go to court, as we have no way to afford the payments. When we send them our income and expenditure, they will be lucky to get £10 per month! We will take your advice and ask for the Landlords Name and Address, and see if we can persuade him to be reasonable. Thanks again for all the help. Linda

theartfullodger

Sorry to read your story

(Sorry it's too late now but..) you did not have to sign a new contract, the old one would have rolled on, month-by-month, automatically on the same terms.. That's the law, but agents often say you "must" sign new deal - perhaps because they are charging you & landlord for a new contract??

Write (by all means 'phone, visit or email also but WRITE - keep copy) asking for landlord's actual home address: Agent has 21 says to supply it, or it may be a criminal offence/fine..

Alternatively chance £4 with land-registry & see what address you get for the owner of the property here...
http://www.landregistry.gov.uk

(Find a property..)

Good luck!

Artful (Landlord...)

ruggedtoast

If you dont have any money and arent likely to in the future, and you have the time limited offer of a secure council house rather than a future of private renting, I would personally just leave and let them chase you for the money.

As you say the courts will decide what you can pay back.

Elvisia

Maybe go and see the CAB? They're great with these sorts of things, and if nothing else just talking to someone official who listens can be terribly therapeutic.

G_M

G51shopaholic wrote: »

You really shouldn't have signed a new 12mth contract if you were waiting on an offer from the housing Association. It would have been better for you to have refused the renewal and went month to month.

That said, you may have a way out if your Landlord/Landlord Agent didn't serve you with the correct paperwork. Did they give you an AT5 notice BEFORE they got you to sign the contract?

I would give the landlord/Agent written notice of your intention to leave the property. It would be good if this was a few days after you took posession of the new house to give you time to move your stuff.

The landlord/agent maybe entitled to claim rental from you for the remaining period but they should remarket the property and once a new tenant moves in your liability for the rent will end. But if NO AT5 or an AT6 - sorry worked in a letting agency in Glasgow for over 7years but not worked for 4 year due to Breast Cancer so my brain is a wee bit mushy. I'm sure its an AT5 - this establishes that the property is being let on a Short Assured Tenancy and MUST be given to the tenant BEFORE the lease.

Good luck

All total rubbish unless this is Scotland. The OP gives no indication that it is Scotland.
If this is Eng/Wales, ignore this post.

We had no choice but to sign a new contract.

Yes you did. No one held a gun to your head did they? You simply had to decline to sign, stay, and continue to pay rent as before.

Your option now is to reach an agreement with the landlord (forget negotiating with the agent!) to early surrender. Offer to pay the LL's associated costs (marketing for a new tenant; rent till new tenant takes over). If you are reasonable in your approach, most LLs will be sympathetic.