Joint rental agreement - what happens when one person leaves?

wobblebits

3 couples have an rental agreement with Foxtons. The agreement is jointly held by all of them (one agreement, all names listed).

One of the couples want to leave at the end of the current tenancy period. Foxtons has said that if the other 2 couples are staying at that point, it is up to the leaving couple to find new tenants, and they will have to keep paying until they do find replacements.

According to them, the only situation where Foxtons would be responsible for finding new tenants is if all couples left at the same time.

Questions:

1. Is this correct? If so, is there any way round it?
2. What happens to the deposit if only one couple leaves? Do the leaving couple get their share?

Thanks for any advice!

pmlindyloo

Have a read of this:

http://england.shelter.org.uk/get_advice/private_renting/private_renting_agreements/joint_tenancies

BitterAndTwisted

Foxtons are correct. The tenancy continues as no surrender has occurred.

In a joint-tenancy one person is the "lead tenant" and the deposit is registered under their name, so the sharing of the deposit between all parties is for them to undertake.

If the remaining two couples don't want to be left with the responsibility of the full rent then they need to surrender the current tenancy and negotiate a new one, with or without a replacement for the departing couple.

If a new couple is found they will need to provide references and be credit-searched in the usual way.

BigAunty

The Shelter website has excellent info on how a joint tenancy can be ended. (It's not my forte but I thought a joint AST has a maximum of 5 tenants? How is 6 + tenants dealt with?)

http://england.shelter.org.uk/get_advice/private_renting/private_renting_agreements/joint_tenancies

You need to stop thinking of yourself as 3 couples or 6 tenants. There is only 1 tenant as such on a joint tenancy, it doesn't recognise individuals.

wobblebits

BitterAndTwisted wrote: »

If the remaining two couples don't want to be left with the responsibility of the full rent then they need to surrender the current tenancy and negotiate a new one, with or without a replacement for the departing couple.

Thanks for this. Does that mean that as an alternative to having to find a new tenant, they can all end their tenancy and start a new one - and then it would be up to Foxtons to fill the remaining place?

BigAunty

I don't believe there is any legal obligation for a landlord (or their agent) to proactively find a replacement tenant. After all, the remaining ones are legally obliged to pay the full sum of rent regardless under the joint/several liability that comes with that type of contract.

Certainly Shelter does not put the onus on the agent/landlord in replacing tenants that have effectively ended the current tenancy by serving notice.

http://england.shelter.org.uk/get_advice/private_renting/private_renting_agreements/joint_tenancies

Can one joint tenant end the whole tenancy?

The rules on how and when a tenancy can be ended depend on whether the tenancy is fixed-term (ie for a set period of time) or periodic (ie rolling from week to week or month to month). See the section on ending a tenancy for more information. If you're thinking about leaving, be sure to discuss it with the other joint tenant(s) before you take any action.

If you have a fixed-term tenancy the tenancy cannot be ended early unless all of the joint tenants agree and either:

• your landlord agrees that the tenancy can end early (this is called a ‘surrender’), or
• there is a ‘break clause’ in your tenancy agreement, which allows you to give notice and leave early.

If you have a periodic tenancy, or the fixed-term has ended and your tenancy has not been renewed, one tenant can end the whole tenancy and does not need the agreement of the other joint tenants. However, the landlord must be given a valid written notice and there are special rules about how and when this must be done.
What if someone wants to leave and others want to stay?

If you want to leave a joint tenancy, it is usually best to discuss it with the other joint tenant(s) before you take any action.
If the other joint tenant(s) don't want to move out, they can try to negotiate a new agreement with the landlord.
The remaining tenants may be able to:

• find another person to take on the tenancy of the person who wants to leave (the landlord would have to agree to this), or
• agree with the other joint tenants to stay on and pay the extra rent themselves.

Your landlord may decide to:

• give the other tenants a new tenancy agreement, listing the new tenants (in practice, your landlord might not bother to do this)
• accept the rent from the new tenant – in which case the new tenant should have the same rights as a tenant whose name is actually on the tenancy agreement.

However, this is a very complicated area of law and you should get advice from a solicitor or an adviser specialising in housing law.

BitterAndTwisted

wobblebits wrote: »

Thanks for this. Does that mean that as an alternative to having to find a new tenant, they can all end their tenancy and start a new one - and then it would be up to Foxtons to fill the remaining place?

No, not necessarily. I would say that if the two remaining couples want to enter into a new tenancy agreement and don't want to cover the leaving couple's share of the rent then it's the tenants who should offer a replacement and not the landlord or their agent.

The landlord just wants the full rent for the property so he shouldn't have to incur additional costs if the current joint-tenants want to change the goal-posts.

G_M

If 2 people out of the 6 leave, and 4 remain, the original tenancy continues.

And all 6 original remain equally liable in law for the rent. In practice, it is easier for the LL/agent to demand the (full) rent from the remaining 4.

Ther are 2 ways to introduce 2 new 'repalcement' tenants:

1) end the original tenancy and start a brand new one, with the 6 names (4 old and 2 new).
2) A Deed of Variation can be Executed substituting 2 new names for 2 old names on the original tenancy

In either case, the agreement of all 8 tenants (6 old + 2 new) AND the landlord, is required.

The 2 new tenants would need to be found by the tenants, not the LL, since in 1) above they would need to apply as a group of 6 for the new tenancy, and in 2) above likewise the 'substitution' would need to be proposed by the tenants.

But in both cases, the LL would need to agree to the new tenants, probobly after the normal vetting/referencing.

The only time the LL/agent would seek new tenants is if the original tenancy ended, the existing tenants ALL vacated, and the LL wished to replace them.