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Should we be charged a lease renewal fee?
verandi
Posts: 166 Forumite
Hi 
My partner and I have been renting via a LA since September, on a 6 month AST. During January we were sent a Section 21 notice stating that the tenancy is due to expire in March and asking us what we wanted to do after this time. The letter states "Should you wish to renew the tenancy there will be a £40 lease renewal fee".
As we are graduating this summer and potentially moving cities before another six months are up, we phoned them up and said we'd like to go onto a rolling contract rather than sign a new 6 month contract. They were fine with this and have agreed that that's what will happen. They've then said that we'll still have to pay the £40 renewal fee.
Now I'm not sure whether or not we should have to pay it so I thought I'd check on here before handing over 40 quid. From my point of view, we are not signing a new contract, and we are not renewing anything. As our contract already mentions that at the end of the fixed term the contract will move onto a month by month basis, I don't see why this would be classed as a renewal.
Our original contract contains a clause saying "If the Tenant stays beyond the end of the fixed term, a new tenancy will arise that will run from month to month, or week to week.". Do the words "a new tenancy will arise" mean the same thing as "If the Tenant renews the lease" (as mentioned in a clause saying that a fee will be charged)?
Any opinions would be greatly appreciated Thank you!
My partner and I have been renting via a LA since September, on a 6 month AST. During January we were sent a Section 21 notice stating that the tenancy is due to expire in March and asking us what we wanted to do after this time. The letter states "Should you wish to renew the tenancy there will be a £40 lease renewal fee".
As we are graduating this summer and potentially moving cities before another six months are up, we phoned them up and said we'd like to go onto a rolling contract rather than sign a new 6 month contract. They were fine with this and have agreed that that's what will happen. They've then said that we'll still have to pay the £40 renewal fee.
Now I'm not sure whether or not we should have to pay it so I thought I'd check on here before handing over 40 quid. From my point of view, we are not signing a new contract, and we are not renewing anything. As our contract already mentions that at the end of the fixed term the contract will move onto a month by month basis, I don't see why this would be classed as a renewal.
Our original contract contains a clause saying "If the Tenant stays beyond the end of the fixed term, a new tenancy will arise that will run from month to month, or week to week.". Do the words "a new tenancy will arise" mean the same thing as "If the Tenant renews the lease" (as mentioned in a clause saying that a fee will be charged)?
Any opinions would be greatly appreciated
Thank you! 0
Comments
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You do not need to pay. Don't make an issue of this or get into discussion/negotiation, just ignore.
On the day following the expiry of your current 6 month contract, provided you a) stay and b) continue to pay (the same) rent, you will automatically create a Periodic Tenancy. No paperwork is needed, and no fee is payable.
Just ignore the letter and stay.
This is statutory, so it is irrelevant what the contract says.0 -
Thank you, G_M, I had a feeling that may be the case. Glad I didn't just pay it now! I bet my landlords have paid theirs.
I'll just ignore the request for the fee and continue as normal 0
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