Changing over tenants in fixed term tenancy

atkinsonj

Hi, I couldn't find any similar questions on the forum but please direct me if this has been answered before.

I'm currently in a shared fixed term tenancy, with no break out clause, along with two other people which ends in March 2014. Two of us can not afford to continue with the tenancy and have found a suitable couple to replace us. The landlord is aware of this and is happy to do his own reference checks to make sure he is happy with the replacement.

However our contract, and I believe our deposit, is held by Foxtons. Has anyone had experience replacing tenants in a flat in a fixed term and knows what sort of costs are involved, especially with Foxtons?

I am under the impression that it is not a simple case of the new tenants moving in as the previous tenants still have accountability on the agreement (effectively sub-letting the flat). Do we need to involve Foxtons to draw out a new contract for all new tenants and pay any incurred costs for doing so? If so how much?

Ideally, the landlord and I would prefer to avoid using Foxtons based on our previous experience with them and the likelyhood of fees involved. However I can't see any other viable solution to hand over responsibility to the new tenants and cut any ties with the flat and retrieve my held deposit without involving Foxtons?

Does anyone have advice on what the best course of action is?

BitterAndTwisted

The deposit has nothing to do with the agent. The final, legal responsibility lies with the landlord. Are you all paying your rent via Foxton's? If so, expect them to fight tooth-and-nail to get the maximum amount of fees out of both you and your landlord to draw up a new tenancy agreement. The old deposit will need to be repaid and a new one registered if the lead-tenant is changing.

atkinsonj

Thanks for the response.

Yeah, the rent goes through Foxtons so that's where it's getting complicated. Any idea what sort of costs we'll be looking at?

The landlord suggested drawing up a private contract for the new tenants alongside our existing one involving Foxtons. Although this could potentially avoid the costs of involving Foxtons is this actually legal? I'm assuming we'd still not be clear of responsibility for the flat until the end of our original tenancy term?

BitterAndTwisted

Your landlord can do what he likes, as the contract you have signed is between you and the landlord. The agent is just that: the landlord's agent acting as intermediary.

If the landlord is happy to draw up a new tenancy agreement then that's that. The issue of Foxton's demanding fees, and they will, is for your landlord to resolve as he's the only party who has a contract with them. Once a new tenancy agreement has been drawn up and signed between the LL and the new tenants your own responsibility will end.

atkinsonj

Ah OK then, so we are able to avoid involving Foxtons then? The landlord is able to draw up a new contract and if all agreed can go from there with new tenants and us cutting ties.
Is this effectively 'surrendering' the tenancy then, before drawing up a new agreement for the new tenants & one person staying on?

Sorting out switching deposits will involve us contacting the company that currently holds it right? As a separate matter, again not involving Foxtons?

dancingfairy

It's going to depend on the exact nature of the contract between the landlord and foxtons. Was it to find new tenants? to credict check them? to collect rent and to manage the property on his behalf?He needs to sort it our with Foxtons.
if the landlord is happy for you all to agree a mutual surrender then that's what will happen. He will then have a new contract with the new tenants. Whether this will be done through Foxtons or not is up to the contract he signed with them.
In terms of your deposit have you checked where it is registered? You should be able to log on and request your deposit back and your landlord should be able to authorise it from his end.
df

BitterAndTwisted

Yes, it will entail a surrender of the current tenancy and a new agreement being drawn up. The outgoing tenants should fully expect to be asked to cover the costs of this.

Speak to your landlord about how the current deposit is going to be handled. If Foxtons registered it on the landlord's behalf but are currently physically holding the funds you can fully expect them to attempt to insinuate themselves into the surrender and the new tenancy agreement. Not all schemes require that the funds are transferred to the scheme's bank account but are insurance-based ones which attract a premium.

As I said, Foxtons will fight tooth-and-nail in order to extract the maximum fees possible from both you and your landlord. They are well-known for this and didn't get to float on the stock-market by being reasonable or fair.

Jeffrey_Shaw

BitterAndTwisted wrote: »

The deposit has nothing to do with the agent. The final, legal responsibility lies with the landlord.

atkinsonj wrote: »

Yeah, the rent goes through Foxtons so that's where it's getting complicated.

BitterAndTwisted wrote: »

Your landlord can do what he likes, as the contract you have signed is between you and the landlord. The agent is just that: the landlord's agent acting as intermediary.

Not quite! The Housing Act 2004 lumbers L's Letting Agent with the same responsibilities re Deposit Protection as L, you see. Section 212(9)(a) says this:

In this Chapter references to a landlord or landlords in relation to any shorthold tenancy or tenancies include references to a person or persons acting on his or their behalf in relation to the tenancy or tenancies...

atkinsonj

So there is effectively a separate agreement between Foxtons & the landlord which affects weather he has the freedom to amend or re-draw up on any of his contracts Foxtons have been part of? OK will chase him to find out what he has with them.

Yes I have info about the company where the deposit is held. Sounds straight forward enough. Thanks