Contract renewal

Palacerich

Hi, I rent my property via Countrywide and had a years rental contract, that year is up at the end of January and countrywide have sent me a letter asking if I wish to continue renting the premises. If I want to extent my contract they want to charge me £125 for the privilege of doing so. Is this the norm?
Thanks in advance.

dancingfairy

I don't know what the going rate is in your area, but basically they will charge what they think they can get away with :mad:.
If you don't sign anything you will automatically go on to a rolling periodic tenancy. The letting agents don't like this as it means they can't charge a fat fee for doing not a lot.
Basically you can a) move out, b) pay the fee (and feel hard done by and ripped off) or c) negotiate.
Would you prefer to sign a new fixed term contract or to go onto a rolling tenancy? Is it worth paying the fee for the sake of getting a fixed term contract for you or would you prefer a rolling tenancy?
Do you have the contact details of the landlord? You can always write to him or her, explain that you are happy in the house and want a rolling contract or a fixed term contract but that you are not happy with the fees. You will probably find that the letting agents will also be charging the landlord a tenancy renewal fee
All they really would need to do is photocopy a piece of paper.
Good luck if you decide to negotiate.
df

Pixie5740

Yes it's normal for letting agencies to try and charge both tenants and landlords for getting you to sign another fixed term contract. You don't have to sign or pay for anything though. If you do nothing you'll automatically start a statutory periodic tenancy when the fixed term ends.

dancingfairy

Pixie5740 wrote: »

Yes it's normal for letting agencies to try and charge both tenants and landlords for getting you to sign another fixed term contract. You don't have to sign or pay for anything though. If you do nothing you'll automatically start a statutory periodic tenancy when the fixed term ends.

Although sometimes they know they have you over a barrell and it's less stressful to pay the money and be done with it, knowing you at least have a tenancy for a year, rather than playing hardball and fearing a S21
df

Pixie5740

This is true

Perhaps if a section 21 is issued the OP could go to the organ grinder and just continue on a SPT.

G_M

Read:

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?)

stator

Unfortunately many of us find ourselves in a situation similar to yours. It's really just a form of blackmail and you have to decide yourself whether you want to take the gamble vs pay the money.
It's a very small chance that they will want to evict you because you haven't paid them for a new tenancy. The vast majority of the time they will just let you roll onto a periodic tenancy. However there might be a few circumstances where they really do want a fixed contract, so you might want to contact your landlord directly and ask what they are happy with (if you can get the LL details)

harrys_dad

Why would a LL want to evict a good tenant because the tenant will not pay the LA fees? It also saves the LL fees to the LA. Tell the LA to clear off.

G_M

harrys_dad wrote: »

Why would a LL want to evict a good tenant because the tenant will not pay the LA fees? It also saves the LL fees to the LA. Tell the LA to clear off.

The risk is that the LL is not on hand (eg overseas) and has delegated all responsibility to the LA who will happily evict a good tenant because of the multiple new fees he can charge.

stator

I've also heard of landlords wanting to remortgage and needing a long term tenancy to show the lender.