Advice needed ending a tenancy & buying new house

buddabudda

I'll try to keep this concise and accurate:

1. Currently in a 12 month AST ending on September 8th

2. Currently in process of purchasing a new build property

3. Mortgage application submitted June 28th, valuation set for July 17th (why so long??!). So could still very easily all go t*ts up.

4. Expected exchange date is probably July 26th give/take

5. Expected completion is some time in October

6. Letter recieved June 29th from lettings agency reitterating that AST ends on Sept 8th and do I want: new 12 month AST, new 6 month AST, month to month. I have yet to respond.

I havent responded to the letting agency's letter yet as I had hoped the motgage process would have been quicker, but given we've recently been told the valuation isnt set untill July 17th its obvious its a slower process than I'd hoped. Thats prompted me to consider telling them something about our plans before exchange/mortgage approval.

Obviously if the house purchase goes through Id like to be on month to month. But I dont want to opt for month to month and then the house purchase falls through. Im loathe to tell the lettings agency anything untill my position is solid as Im feaful of a section 21 notice meaning we'd be without housing for a month or so.

The lettings agency and landlord are one and the same (house owned by partner in the firm) and the whole thing is a profit making enterprise. So whilst they havent been nasty, it is very clear this is all about investments and returns for them. Hence my fear there'll be a sectio 21 notice as they want security of income .... not a tenant who may only give one months notice.


Advice?
Anyone?
Please?

BitterAndTwisted

Just because you get a Section 21 Notice does not man you will have to move out after the two month's notice. Only a court can end your tenancy if the LANDLORD is so minded. Going to court is expensive, so most sensible landlords would be keen to avoid it if possible.

Under the circs I would ignore the agent for the time being and get in contact with the landlord, tell them that you would rather go on to a periodic tenancy from September and why. And then assure the landlord that you fully intend to be really flexible about viewings during your notice period.

Guest101

Bigger question, why 3 months between completion??? Normally exchange and completion are 2-3 weeks apart, not months!

As for s.21, they would have to serve it in time for the 8th August, so 2 months, would be 8th October anyway. And if you weren't ready to leave, you could stay until they get court order which is 3-6 weeks.

And its not like you'll need a reference.

buddabudda

Thanks to both of you.

So can a section 21 only be served at the start (or end?) of a rental period? (in this case the 9th of a month.... rental period runs 9th - 8th)

In the event of them starting the court order process after serving a section 21, would I be liable for costs?

I do realise this is all worst case.... but I'd like to know the extent of worst case

buddabudda

OH!!

3 months between exchange and completion because its a new build. House wont be finished untill October

BitterAndTwisted

If they issue you with a S21 today they will only be able to go to court to enforce it on or after the 7th of October. And yes, the court could award costs against you.

As the agent has asked you whether you would prefer to go on to a month-to-month periodic tenancy I can't see any reason why you wouldn't signify your intention to do precisely that now. It's really only fair to the landlord to let them know as soon as possible.

Guest101

A s.21 can be served at any point, but can only be effective, at the end of the fixed term of the AST (IE end of 6 month/12 months, whatever your contract says.) and can only be served with 2 months notice, before the rent due date. So Yesterday, would've be set for september. But now even if they serve you today, it still be 2 full rental months, so 8th August for a period of 2 months.

The notice must be before the rental due date. - as does your 1 month notice.

Just a query, is your deposit protected in a DPS? If not a s.21 cant be served legally anyway.

I wouldn't expect you to be liable for court costs, but i wouldnt rule it out either. It's a no contest judgement. The judge must award possesion to the Landlord, its more the time it takes to get to court that is 3-6 weeks. + then bailiffs etc.

Re 3 months - makes perfect sense. Just word of warning, i dont know any builds that compete on time, so it may be closer to november before you move.

You're best bet in all honesty, is to ignore the agent. You automatically go onto a periodic tenancy after the fixed term ends, and that's month-month.

so on the 9th September, you would be secure until december, and could leave yourself in november - i reckon that's your best bet.

Mr_Moo_2

Your only real risk on a new build is an uncertain completion date - other than that and as long as the valuation isn't very silly, there is no real reason for the transaction not to go through. Which makes going onto a periodic a bit of a no brainer.

Partly depends on how orgainsed the LA is - they are likely to have been asked to provide a reference as part of your mortgage application? If they are organised they will therefore know that you are likely to up sticks in the near future.

If they serve a S21 and its valid, and you do stick it out beyond the expiry of the S21 they maight go to court to obtain posession and might then seek to claim costs (someone quoted the actual amounts on a thread recently so do a search if you need them) - but in reality they'd be better off just agreeing a leaving date with you. And this can potentially buy you enough time to have the new place sorted.

Edit - what G101 says above makes sense.....

Good luck

buddabudda

Thanks to you all again.

Bitter and Tiwsted: I didnt want to tell the lettings agency everything as I was fearful of putting myself in a situation where I could be asked to leave via a s.21 before the new build was finished. In an ideal world I could be certain theyd be reasonable and Id tell them everything right away... but I believe there are threads on this forum where people have been open with lettings agencies about buying a house and ended up threatened with homelesness as the agency was unreasonable.

Guest 101: Yes the deposit is protected. Regarding completion date and possible delays, Im actually amazed theyre saying october because the place looks about a month away from finishing. Roof on, windows in, all internal walls up, 1st & 2nd fix on plumbing/electricals done. It just seems the finishing work needs to be done. They told us when we first viewed it that September was the intended completion date but they like to add in a month for over-runs so have told us October.

Mr. Moo: I asked the broker if Nationwide were likely to contact the lettings agency (as they asked for the contact details). The broker told me that they normally dont bother. I told him I only asked because if anyone was going to be telling the lettings agency what was going on, Id prefer it was me.

G_M

They've offerredyou a Periodic (rolling, monthly) Tenancy.

Accept. You then have flexibility.

What's the issue?

More here:

Ending/Renewing an AST (what happens when the Fixed Term ends?)(What is a Periodic Tenancy?)(How can a LL remove a tenant?)(How can a tenant end a tenancy?)

BitterAndTwisted

buddabudda wrote: »

Thanks to you all again.

Bitter and Twisted: I didn't want to tell the lettings agency everything as I was fearful of putting myself in a situation where I could be asked to leave via a s.21 before the new build was finished. In an ideal world I could be certain they'd be reasonable and I'd tell them everything right away... but I believe there are threads on this forum where people have been open with lettings agencies about buying a house and ended up threatened with homelessness as the agency was unreasonable.

Which is the reason why I suggested you let the landlord know of your intentions now.

Even if the LL/agent decides to bring your tenancy to an end, they won't be able to go to court to enforce it until 8th October. And then it could take another month or two before they get a court-date. By which time, God willing, you will have moved.

The one thing which could encourage the LL to issue a S21 is to receive absolutely no communication from you at all. Remember, the agent has ASKED whether you want to go on to a periodic tenancy. This is not normally the action of a party who is going to issue a S21 at the drop of a hat.