Stuck in a fixed term rental contract

rlg6767

Hi,

I am stuck in a twelve month fixed term contract with no break clause (runs untill mid July). I live in zone 2 in London.

I have just exchanged on my first house and was led to believe by the estate agents that I could break the rental contract early by paying a penalty fee. The problem is that the managing estate agents have advertised the property for rent with a ridiculous asking rental, hence we've had no viewings in two weeks.

The estate agents are saying that I am liable to pay the rent to the end of the contract (mid July) if no tenants can be found. I get the feeling they have me by the short and curlys but would appreciate any advice as to the best course of action.

I'm thinking that if no viewings occur before next payday (early May) I cancel my rent payment and face the wrath of the law and losing my deposit (8 weeks rent). Could be a stupid idea but I'm stuck between a rock and a hard place.

Thanks for any advice.

RLG.

timberflake

My first question would be, did they say how much the penalty fee was? If not, the cost of your rent pcm x remaining months on contract = penalty fee I would imagine.

rlg6767

The penalty fee was to compensate the estate agents for not making as much money in management fees (which is b0ll0x if they are able to immediately re-let). It was approx £600 for breaking the fixed term contract 10 weeks early.

ognum

I guess my question to you is how would you feel if the landlord suddenly decided you had to leave rather than honour your contracted term?

Just because it is now not convenient for you to remain in the contract you agreed does not make it right for you to do as you please.

I agree the rental agency may be being difficult with you but try some kind of conversation or negotiation.

Your landlord is running a buisness, it costs them each time they need to secure new tenants and do inventory, clean etc so it is not surprising there is a cost to you to break a contract.

if you simply walk off then the landlord probably will take you to the small claims court and will win because it is you who has broken the contract and you will then have costs etc as well.

PLease try communications first, it usually works.

rlg6767

I've tried talking to them but they are not interested in negotiation. Obvioiusly leaving would be the last resort and something I probably won't do but I'm peeved that the rental is so high.

I live in a 1 bed and there are two bed flats in the same development going for less, exactly the same spec otherwise. If thats not the landlord/estate agents taking the p1ss I don't know what is???

timberflake

rlg6767 wrote: »

I've tried talking to them but they are not interested in negotiation. Obvioiusly leaving would be the last resort and something I probably won't do but I'm peeved that the rental is so high.

I live in a 1 bed and there are two bed flats in the same development going for less, exactly the same spec otherwise. If thats not the landlord/estate agents taking the p1ss I don't know what is???

But you signed a contract at an agreed rental price and are therefore bound by the terms.

G_M

Who are you discussing this with? The agent or the landlord?

It is the landlord's property; It's his rent; it's his business. The agent just works for him, and does wat he says, so discussing with the LL may prove more productive.

It is usual when negotiating an 'Early Surrender' for the tenant to pay the LL's reasonable extra expenses (finding a replacement tenant etc) and rent till the new tenant moves in, but everything is up for negotiation.

In strict legal terms, as you seem aware, you have no rights, and leaving early risks court action for rent till July.

More here on ending a tenancy.

rlg6767

Thanks for the advice.

I've been dealing with the estate agents who are the managing agents. It may be worth trying to speak with the landlord directly (its a property company however).

I'm fully aware of my obligations, I'm just annoyed that I was told that I could break the contract early subject to a penalty fee and new tenants moving in, and to find that they have set the asking rental price ludicrously high so there is no chance of new tenants moving in.

What hurts even more is that this is the second year I've been in the flat and when I came to renew after the first twelve months the LL refused to put me on a rolling contract and insisted on a new 12 month fixed term.

I thought everything had been going to smoothly.....;-)

mildred1978

rlg6767 wrote: »

Thanks for the advice.

I've been dealing with the estate agents who are the managing agents. It may be worth trying to speak with the landlord directly (its a property company however).

I'm fully aware of my obligations, I'm just annoyed that I was told that I could break the contract early subject to a penalty fee and new tenants moving in, and to find that they have set the asking rental price ludicrously high so there is no chance of new tenants moving in.

What hurts even more is that this is the second year I've been in the flat and when I came to renew after the first twelve months the LL refused to put me on a rolling contract and insisted on a new 12 month fixed term.

I thought everything had been going to smoothly.....;-)

If you were thinking of buying a property, why on earth did you sign a tenancy agreement with a break clause in it?

rlg6767

I didn't decide to buy until earlier this year. The managing agents said I could break the contract early as long as I paid the penalty fee and new tenants could be found. I didn't think they would set the asking price so high!

Thanks to the poster who sent the link to the housing act. I've just found out the managing agents may have broken the law by refusing to allow me to move to a statutory periodic tenancy which would mean I wouldn't be in this position! Going to see them tomorrow with my proof! I have all the email trails still so hopefully they will play ball.

jjlandlord

rlg6767 wrote: »

I've just found out the managing agents may have broken the law by refusing to allow me to move to a statutory periodic tenancy which would mean I wouldn't be in this position!

And what law would that be?

A SPT arises after a fixed term tenancy ends, so they cannot 'refuse'.
At the same time both parties are free to sign up for a new fixed term tenancy...

Now of course, they 'forgot' to tell you about this. But they had no obligation to.