Extend rent contract and break it, or ask for shorter contract?

phemark

Hi,

We are buying a flat and moving in in the end of January (final stages of development now). Our rent contract is finishing in the end of October and our agency is asking if we want to extend it for another 6-12 months. What would the best option be:
a) Extend for 6 months, and break 3 months early
b) Ask for 3 month extension

With a), there could be significant charges, and with b), they could say no and we would have to move out..

Please advise,
Thanks

Kevie192

or c) allow the contract to continue as a periodic tenancy, on a month by month basis.

That would be your best best in my mind.

pmlindyloo

phemark wrote: »

Hi,

We are buying a flat and moving in in the end of January (final stages of development now). Our rent contract is finishing in the end of October and our agency is asking if we want to extend it for another 6-12 months. What would the best option be:
a) Extend for 6 months, and break 3 months early
b) Ask for 3 month extension

With a), there could be significant charges, and with b), they could say no and we would have to move out..

Please advise,
Thanks

You do not have to do either of these.

When your fixed term ends you do not have to have another fixed term. You can go on to a periodic tenancy (month by month).

To end this periodic tenancy the landlord would have to give you 2 months' notice and you would have to give one month's notice. In your situation this seems to be the best option.

For further detail read this:

http://forums.moneysavingexpert.com/showpost.php?p=52421475

princeofpounds

Unless you find a S21 dropping in the post, going onto a statutory periodic contract is almost certainly the best thing. You do not have to do anything, it happens automatically when the fixed period of your tenancy ends. You don't need to ask for an extension.

The agent may not like this as they can't charge a fee for pressing 'print'. Often landlords are misinformed about SPTs and worry unnecessarily.

Another alternative is to renew your tenancy with a 6 month tenancy ASAP. There is nothing to stop you and LA/LL doing this at any point.

phemark

Thanks for replies.

This periodic tenancy sounds like the best option.
However, would it be possible, given that the agents emailed us and asked if we wanted to extend by another 6-12 months?
Should we just say that we want periodic tenancy? (Do we need to give reason?)

Thanks

rock_queen

Doesn't it automatically go onto a rolling monthly contract? Perhaps worth while checking what your current contract says. If not then personally I would renew for another 6 months and see what happens, your flat may not be ready to move into at the end of January and it would give you some breathing space when the time does come to move.

phemark

rock_queen wrote: »

Doesn't it automatically go onto a rolling monthly contract? Perhaps worth while checking what your current contract says. If not then personally I would renew for another 6 months and see what happens, your flat may not be ready to move into at the end of January and it would give you some breathing space when the time does come to move.

Contract says that it is 12 month contract, with the end of tenancy on end of October. No mention of periodic tenancy after that in the contract, hence my question.

princeofpounds

This periodic tenancy sounds like the best option.
However, would it be possible, given that the agents emailed us and asked if we wanted to extend by another 6-12 months?
Should we just say that we want periodic tenancy? (Do we need to give reason?)


Contract says that it is 12 month contract, with the end of tenancy on end of October. No mention of periodic tenancy after that in the contract, hence my question.

No need for mention in the contract. It is the law. If you want it, inform the LA/LL of your intention.

The LL may not want it, and so they can try to end your tenancy via a S21 notice at the end of the fixed term. It will take them quite a while to actually get you out however as only a court order can end the tenancy, although 3 months may be long enough, 6-8 weeks is normally doable.

Rational LLs are normally ok with it, as what is the point of kicking someone out if you are afraid they might leave?

LAs are not always honest intermediaries however as they like the renewal charges and tenancy turnover.

Sometimes a LL has a valid reason for insisting on a 6 month tenancy (mortgage or insurance restrictions), which is why I suggest an alternative of renewing for a fixed term ASAP as a plan B that is a little more secure.

phemark

Thanks for all the information guys.

I emailed back the agents asking if the landlord would agree to a rolling tenancy.
If not, what could happen if we want to cancel early in case we resigned for 6 months? I looked through my existing contract, but there is nothing to say about early cancellation - the only thing was the mention that the deposit will be used to cover all the costs of it, but nothing specifically.

princeofpounds

You remain liable for rent until the end of the tenancy. You can't just cancel part-way through a fixed term. That is why it is called a fixed term.

You may negotiate to include a break clause, but often LLs don't agree to this before 6 months as:

- a LL cannot under law exercise a break clause before 6 months, so the powers become a bit unbalanced.
- LLs often have to pay the agents a fee for every renewal. Sometimes a large fee. They may not want to be doing this again in three months time.

phemark

princeofpounds wrote: »

You remain liable for rent until the end of the tenancy. You can't just cancel part-way through a fixed term. That is why it is called a fixed term.

You may negotiate to include a break clause, but often LLs don't agree to this before 6 months as:

- a LL cannot under law exercise a break clause before 6 months, so the powers become a bit unbalanced.
- LLs often have to pay the agents a fee for every renewal. Sometimes a large fee. They may not want to be doing this again in three months time.

Makes sense. Thanks for this.
So if they don't want to do rolling contract, will then ask for a shorter period, if possible at all.
If not.... then will have to think of something else...