Renewal of lease - please help!

catewithers

We've been renting a house for almost 6 months now - lease ends on 11th August 07. It's all done through an agency.

We have an extremely poor credit rating due to our debts - which we are in the process of sorting out. When we were negotiating moving in, we were honest about this and offered to pay 6 months up front in recognition of the fact that we are considered to be a risk. This was accepted and we moved in.

We had communication from the letting agent (LA) yesterday that the landlord is happy for us to sign a new 6 month lease but requires 6 months rent up front again, or for us to provide a financial reference, or for us to provide a guarantor. On requesting clarification, they have told us that to provide a financial reference we must go through "their" referencing company and this will cost us £117.50 each. If we wish to provide a guarantor, they also have to go through the referencing procedure, also at a cost of £117.50.:eek: :mad:

They ran credit checks on both of us before we moved in so I'm not entirely sure what this "financial reference" is going to tell them that they don't already know.

Any advice as to what we should/could do? We don't have 6 months rent to give them, as we've had to use some of our savings for other expenditure during the time we've been here. I think the whole financial reference thing is outrageous and we don't have anyone who could be our guarantor - or no one we would ask anyway.

I'm tempted to write a letter to the landlord direct and try to negotiate with her minus the agent as I'm suspicious that these directives have come from the LA rather than the LL. But I'm wary of overstepping the mark and upsetting them. We really really want to stay here - simply can't face the hassle of moving again, especially as it's so difficult to find somewhere because of out credit history and our dogs and hens! :rolleyes:

Any advice would be greatly appreciated.

silvercar

Contact the landlord direct and explain, emphasise that you have been a good tenant and want to continue but can't afford £175 each that the LA wants. I bet the landlord didn't know that the LA would try this.

If you haven't been served notice to leave then I understand the tenancy becomes periodic on a rolling month by month basis. The LA won't like that as it means no commission for them but the LL may be happy.

catewithers

I thought that about the periodic tenancy, but they already served us with the section 21 when we moved in.... doesn't that mean that we have to sign a new lease?

Silvercar, am I right in thinking that you're a landlord? Would you be happy with a tenant contacting you if your property is managed by an agency? Any other landlords out there whose properties are managed by agencies? What are your thoughts?

silvercar

A landlord for less than a year, so I'm still learning.

I think you could contact the landlord. If they didn't want direct contact they would tell you to speak to the letting agent.

Having been servied a section 21 you now want something in writing to say that the landlord doesn't want the property back at the end of the term. This would be for your own security. Armed with that there is no reason why the tenancy cannot become periodic.

catewithers

Ok so I'm about to send the following email back to the agent:

Dear Ms. LA,

Further to your email to my husband, dated 5th July 2007, please accept our apologies for not having been in touch sooner. We are in the middle of our annual holiday and have been away from home for a few days.

We are somewhat confused about this issue of financial referencing. We were credit checked by your company in February prior to moving in to the property. This is less than 6 months ago. Why is it necessary for this to be done again after such a short period of time has elapsed? We were very honest with [LA] and the landlord as to what would be found on our credit record (as we are very aware it is poor) and nothing, other than that which we informed you of, was found. We are unsure as to why it is necessary to run the same checks again.

Credit records are very easily obtainable at the cost of £5-£10 each from 3 separate agencies. We fail to see why it should cost £117.50 per person to have these checks done by your company. This appears to be simply another way to maximise your company's income. We are more than happy to contact Experian, Equifax and Callcredit ourselves and request that copies of our references are sent to you personally.

I look forward to hearing from you regarding our queries.

Yours sincerely,

What do you think? Is that ok?

I'm also about to write a letter to the Landlord direct explaining the situation fully and asking them to consider accepting 3 months rent up front with the remaining 3 months paid by monthly standing order. Will also point out that we wish to remain in the property on a long term basis and would be more than happy to sign 12 month lease etc. Also including details about periodic tenancy etc.

Comments and thoughts would be appreciated.

Doozergirl

I wouldn't even bother with the LA letter. Deal directly with the Landlord. I agree that they probably don't even know that you're being asked to pay up again by the LA.

If your agreement simply ran to a periodic tenancy, the LL would be able to give you two months notice to quit so 6 months rent up front would be overkill. I'm sure you could come to a more sensible agreement between the two of you.

I should think the LL would rather have you there than have to try to find another tenant and pay out for a potential void and another fee to the LA.

catewithers

Had an email back from the agent just basically saying again what they'd said in their first email. Bloody Letting Agents! :mad: Hate the lot of them.

The problem with all of this is that we're going on holiday tomorrow morning and aren't back for 10 days. So we have some serious time constraints.

What we're going to do is this; DH's parents are going to lend us the money to pay the six months rent up front and we will set up a standing order to pay them the rent every month. While that 6 month lease is running, I'm going to write to the LL and outline the periodic tenancy thing and see if we can negotiate when we don't have the time pressure hanging over us.

Thanks all for your help.

franklee

I can fully understand your feeling time pressure as they already served you with the section 21 when you moved in (the so called Sword of Damocles ). But an S21 must be unequivocal and without reservation. Therefore the agent having written to you saying that the landlord is happy for you to sign a new 6 month lease is in itself enough to invalidate the S21, even if you don't agree the new lease.

See the following post from a very experienced poster who is a trainer in letting:

http://www.landlordzone.co.uk/forums/showthread.php?p=32964#post32964

A S.21 Notice MUST be "unequivocal" and "without reservation" i.e. unconditional, so as soon as you start entering into negotiations about a further tenancy, or conditional withdrawal of the Notice then you are effectively withdrawing it anyway. The tenant might use the Protection from Eviction Act 1977 to defend a S.21 Notice in that the landlord can't say "I want possession" and then on the other hand say "but I might not"

So if all negotiations fail at least you *should* be given a proper two months notice, hopefully this will ease the stress while you finish your negotiations.