Getting out of rental lease

Ch4rlieB

Not sure if anyone can help.

We've just paid a holding deposit for a house, and are due to move in on Thursday. First months rent and bond have been paid, but no lease has actually been signed.

I've learnt today that my employer is shutting down, and have no idea how much longer I'll have a job.

Can I rightful ask for my bond and first months rent back considering I've not signed a lease yet, only the holding paperwork? For reference its in England if that makes any difference?

G_M

You can ask! Hopefully the LL will be understanding and return your money in full.

It could be argued that a verbal contract has been agreed since you have paid rent and security deposit. After all, if the position were reversed and the LL changed his mind, would you not consider he had commited himself to renting you the place by accepting your rent in advance?

However, the fact that you have not yet moved in, means a tenancy has not yet been created. And the fact that no tenancy agreement has been signed could imply the contract is not yet complete.

A reasonable LL would return your rent and security deposit (bond), but as for your 'holding deposit', that is more likely to be forfeit - the LL has probobly removed the property from the market and quite possibly turned away other interested tenants.

jjlandlord

G_M wrote: »

A reasonable LL would return your rent and security deposit (bond), but as for your 'holding deposit', that is more likely to be forfeit - the LL has probobly removed the property from the market and quite possibly turned away other interested tenants.

It'd depend what sort of 'holding deposit' was taken and what the landlord commit to do in exchange.

In any case, from OP's description it seems very possible that a contract has been formed, so as LL I would seek to cover my losses, which would include lost rent.

theartfullodger

What did the receipts you were given (you did get receipts didn't you - or an email outlining terms..) say about returning rent & deposit is you didn't move in?? I can't read them from here...

As ASTs for less than 3 years can be verbal no tenancy would have to be signed anyway.. I think you & LL have verbal contract in place: Difficultly is proving what the terms are/were

Assuming they say nothing then you are probably dependent on landlord being helpful.

Landlord COULD sue you through the courts for the rent he would have got for the rest of the initial fixed term.. so maybe don't be too shouty...

Sorry to hear about your employer, hope it gets better...

princeofpounds

Make it clear to the LL that whilst this may be annoying, the circumstances are out of your control and he is avoiding a non-paying tenant being in place, which is much worse than a void.

jjlandlord

theartfullodger wrote: »

Landlord COULD sue you through the courts for the rent he would have got for the rest of the initial fixed term..

No, he cannot.
At this point there is no tenancy, so the rent payable for the fixed term is not a debt, and LL cannot treat tenancy as continuing.
If a contract has been formed, landlord is just entitled for his loss (which he must minimize) resulting from a breach by the other party.

sparkly_momma

hmm, seems a little odd that you have paid the 1st month's rent and deposit before signing anything. In my experience that has always happened the day we moved in. The deposit should be easy enough to get back as that is your money and only needed as security against damage etc to property which you wouldn't be living in. The 1st month rent may be a little harder? What I would ask is if you would qualify for housing benefit (I mean if you are the only breadwinner), as that is a whole lot easier to claim if you are actually in a rental to begin with, and you don't have to then worry about finding a rental that accepts DSS.

Ch4rlieB

Thanks for the comments guys.

Spoken to the agent, and explained the situation, and how I'd rather pull out now then be a none paying tenant in a few months.

Housing benefit would be a no go anyway, both me and my wife earn a good wage, so wouldn't be eligible.

I say earn.. I should start saying earned a good wage!

Agent was understanding and is sending back the bond, and first months rent (This was only paid early as funds needed to clear before signing later in the week, and I paid by cheque)

No idea what the LL said, as I dealt with the agent, but obviously was ok with the situation.

Thanks again everyone. Now to sort out the job front