How do we avoid being homeless?!?

forevergrey

Our six month tenancy agreement ends on 6 July and we have now had an offer accepted on a property to purchase. The vendors have agreed to move in with family and all parties involved are aware of our deadline. Nevertheless we are aware that there could be an overlap period during which we could be homeless.

The letting agents will soon be asking our intentions. If, as I suspect, we will not be given the option of going periodic once they know of our proposed move, and the landlord issues notice during the six month period, does this have to coincide with a rent day or is that only applicable once periodic? There doesn’t appear to be a section 21 notice with our agreement. Short of refusing to move I can’t think of any way to buy more time if it becomes necessary!

Sisyphus

Why would you tell them about your proposed move? It's none of their business at the moment. If the letting agents ask, tell them that you are fine with that your existing AST becomes a periodic tenancy. You do not have to sign a new AST. They have to give you 2 months notice if they want you to leave at the end of the existing 6 months. You will have to give 1 months. Notice has to be on or before the exact date.

silvercar

The risk is that the letting agent asks you to sign a new contract by 6th May or will give you notice, via a section 21, before 6th May to leave on that day.

Letting agents generally prefer new contracts - more reliable commission than periodics.

I would contact landlord and explain situation. If you are happy to allow viewings near the end of the tenancy, I don't see why he would refuse to allow you to go periodic for a short while.

The other option is to say that you are renewing, not sign the renewal and invent excuses why you are late returning the new contract until your house purxhase is clearer.

Sisyphus

silvercar wrote: »

I would contact landlord and explain situation. If you are happy to allow viewings near the end of the tenancy, I don't see why he would refuse to allow you to go periodic for a short while.

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this course of action could also lead to an instant Section 21.

Personally, I'd say nothing. Wait for them to contact you. Tell them you are very happy to stay but that the existing contratc is perfectly valid. Periodic is fine with you. Why would you want to change a personally valid contract. If they want another 6 month fix they should make it worth your while - why should you give up your flexibility. Periodic is very common after the intial fixed AST. Negotiations could last a while. If you've been a good tenant they don't want to lose you straight away and risk a void any way.

As a last resort you could offer higher rent vs periodic vs rent reduction if you do agree a new 6 monther. Remember that until they give you an section 21 you still have at least 2 months leeway. Do not let them try to fool you into thinking you have to leave on the last day of the AST. It's up to them to give you notice.

forevergrey

Sisyphus, Silvercar... thanks for replies.

To be clear about this, if a section 21 is issued before or on 6 May then we would have to vacate 6 July. If after 6 May, then two months from that date (not from a rent day?).

We've been here nearly two years on a mixture of fixed and periodic contracts for reasons I won't bore you with. There isn't an oversupply of properties in this area, so we're not really in the driving seat!

Our big concern obviously is that if purchase is delayed or worse falls through that we won't be able to stay on if notice has been given and prospective new tenants shown around.

Sisyphus

forevergrey wrote: »

Sisyphus, Silvercar... thanks for replies.

Our big concern obviously is that if purchase is delayed or worse falls through that we won't be able to stay on if notice has been given and prospective new tenants shown around.

As you would only have one moth's notice to give on a periodic, that shouldn't be a big issue should it?

We've been here nearly two years on a mixture of fixed and periodic contracts for reasons I won't bore you with. There isn't an oversupply of properties in this area, so we're not really in the driving seat!

what you've gone from periodic back to AST? Sounds like they're running rings around you. I presume you mean no oversupply of rental properties? That could work both ways - there might not be that many tenants about either.

silvercar

letting agents and landlords and some tenants like ASTs rather than periodic tenancies because it gives security that the tenant will continue to let the property for another year.

Say you have a mum and kids on a 12 month AST, if they continue periodic they can be given two months notice, in any month, to leave. With a year's AST they know they have the place for another year.

Sisyphus

silvercar wrote: »

letting agents and landlords and some tenants like ASTs rather than periodic tenancies because it gives security that the tenant will continue to let the property for another year.

Say you have a mum and kids on a 12 month AST, if they continue periodic they can be given two months notice, in any month, to leave. With a year's AST they know they have the place for another year.

the flipside of that is that if your situation changes or you need to move you could still be obliged to pay the rent until the end of the contract.

forevergrey

Sisyphus wrote: »

As you would only have one moth's notice to give on a periodic, that shouldn't be a big issue should it?

what you've gone from periodic back to AST? Sounds like they're running rings around you. I presume you mean no oversupply of rental properties? That could work both ways - there might not be that many tenants about either.

I wouldn't say they are running rings around us. It's like a game of poker - we pushed hard to stay on periodic but the fact is that there would be no shortage of takers in this area at the moment and they know it.

Can I nail this point down please?

'To be clear about this, if a section 21 is issued before or on 6 May then we would have to vacate 6 July. If after 6 May, then two months from that date (not from a rent day?).'

Sisyphus

forevergrey wrote: »

I wouldn't say they are running rings around us. It's like a game of poker - we pushed hard to stay on periodic but the fact is that there would be no shortage of takers in this area at the moment and they know it.

Can I nail this point down please?

'To be clear about this, if a section 21 is issued before or on 6 May then we would have to vacate 6 July. If after 6 May, then two months from that date (not from a rent day?).'

if your contract expires on the 6th July and they give notice on the 8th May say, then notice would be for the 6th of August not the 8th of July. That is how i understand it.
There are letting agents here who may be able to confirm this.

franklee

forevergrey wrote: »

Can I nail this point down please?

'To be clear about this, if a section 21 is issued before or on 6 May then we would have to vacate 6 July. If after 6 May, then two months from that date (not from a rent day?).'

OK, if you want the nitty-gritty. It depends on when the notice is served, there are two cases:

1. Notice served during the fixed term.

The landlord/agent should serve a Section 21(1)(b) Notice requiring possession giving a minimum two months notice. This does not have to end on any given day but cannot expire before the end of the fixed term. So it could expire on 20th July so long as the notice was at least two months long.

2. Notice served after the fixed term has ended and the tenancy has gone periodic, in your case after 6 July.

The landlord/agent should serve a Section a 21(4)a giving a minimum two months notice but this time the notice has to end on the last day of a period. In your case that would be the 6th of the month.

More detail here, note the cunning use of the word after with the expiry date, that matters but they explain it better than I would:

http://www.letlink.co.uk/letting-factsheets/factsheets/factsheet-21---section-21---notice-requiring-possession-of-an-assured-shorthold-tenancy.html

You do not have to leave when the S21 notice expires. Indeed if you were waiting for council housing the council would TELL you to stay put. The next stage, after the S21 expires, is the landlord goes to court for a possession order. This will be granted unless there is a mistake in the S21 such as the date being wrong. Then if you still don't move the landlord has to get the bailiffs to chuck you out. Each of these stages takes several weeks if not longer.

Normally I wouldn't recommend staying on past S21 expiry as it will damage your references. But if you are not planning to rent next time as you are buying that doesn't matter. Also you will have to pay the landlord's court fees. About 150 pounds for the first round etc, but this is going to be much cheaper than moving twice.

So the best thing to do is keep quiet for now, when the time comes ask for a periodic tenancy, which will happen by default if you don't sign another contract. I'm sure the landlord won't mind if you explain why, the alternative is court which he will be wanting to avoid. I'm sure you will be able to negotiate something you have a strong hand and have been a good tenant for a long time.

Good luck!