Exiting tenancy early. Is this unreasonable?

ashtray_heart

Hi all,

I have been renting a property since 2012. Each year we have renewed for one year as we were told that we couldn't have a rolling contract. We specifically asked for a break clause and were told that there was one. They put in a subletting clause but that apparently (upon clarifying it with letting agents) requires us to remain in the property.

We are buying a property so need to leave early. Landlord said it is fine with him. However letting agent want to charge us 1 months rent + VAT (£1500) and pay rent until they get new tenants. There is nothing in our contract about this just what we were told on the phone. Digging round on their website I found this:

Should a request be made to terminate your agreement early, the landlord is under no obligation to grant this, however should they grant permission to do so an Early Termination Fee will be due equivalent to one months rent + VAT, payable in full before marketing commences. You will be responsible for all costs and obligations within the agreement including rent until such time as new tenant takes occupation.

We still have a contract to the end of October so this could be a lot of money. Additionally there is a problem with damp in kitchen where shower above leaked. The landlord wants to redecorate before letting again which could be a long time.

Is our contract between our landlord or the letting agency? Landlord thinks the fees are unreasonable but he has never done this before so will go with whatever letting agency tells him. Can we agree to surrender contract directly with the landlord?

Thanks for your help.

atolaas

This clause has been added into the contract by the agency to stop/dissuade people from moving out before the end of their contract. You and the LL could approach the agency and explain that its mutually advantageous for you to move out at this time. It can't hurt to ask, but seeing as you've signed a contract agreeing to this clause it would be purely at their discretion. If you found another tenant to move in after you left...that could help the situation.

G_M

ashtray_heart wrote: »

Hi all,

I have been renting a property since 2012. Each year we have renewed for one year as we were told that we couldn't have a rolling contract.
Rubbish. see Ending/renewing an AST:
We specifically asked for a break clause and were told that there was one.
irrelevant. Either there is or there isn't. Read the contract.
They put in a subletting clause but that apparently (upon clarifying it with letting agents) requires us to remain in the property.

We are buying a property so need to leave early. Landlord said it is fine with him. However letting agent want to charge us 1 months rent + VAT (£1500) and pay rent until they get new tenants. There is nothing in our contract about this just what we were told on the phone. Digging round on their website I found this:

Should a request be made to terminate your agreement early, the landlord is under no obligation to grant this, however should they grant permission to do so an Early Termination Fee will be due equivalent to one months rent + VAT, payable in full before marketing commences. You will be responsible for all costs and obligations within the agreement including rent until such time as new tenant takes occupation.

We still have a contract to the end of October so this could be a lot of money. Additionally there is a problem with damp in kitchen where shower above leaked. The landlord wants to redecorate before letting again which could be a long time.

Is our contract between our landlord or the letting agency? Landlord thinks the fees are unreasonable but he has never done this before so will go with whatever letting agency tells him. Can we agree to surrender contract directly with the landlord?

Thanks for your help.

Landlord.

The website is irrelevant, it's the contract that matters, but of course the landlord can choose to impose any terms of Early Surrender he wishes (or none) and you and he can agree or not. If you can't agree, the contact continues.

The agent works for the LL and must do whatever he instructs them to do.

Pixie5740

Your contract is with the LL. It's the LL who has a contract with the LA, and the LA works for him, not the other way round.

That said, there is usually some penalty when a mutual surrender is being agreed, especially if there's a LA involved.

Who said that you couldn't have a periodic tenancy? Was it the LA? If so then your LL has been a bit of a tit. Did you have to pay a fee every time you renewed? I bet your LL was charged a fee too. Kerching for the LA for doing pretty much SFA.

G_M

atolaas wrote: »

This clause has been added into the contract by the agency to stop/dissuade people from moving out before the end of their contract. .....but seeing as you've signed a contract agreeing to this clause it would be purely at their discretion. If you found another tenant to move in after you left...that could help the situation.

Errrr, what?

In what way is this clause 'added to the contract'? Has the tenant signed the clause?

And enforcement of the contract is, of course, entirely up to the landlord, not the agent.

The contract is between LL and tenant. The agent simply works for the LL as his... errrr.... 'agent', so must do as he instructs.

Nobbie1967

The OP says the landlord is fine with leaving early, so I suggest they write to the LL requesting early surrender and get agreement in writing from them, or may a text, but something to indicate agreement that they could present in court should they need to. The contract is between the LL and the tenant so ignore the letting agent. Once you have this just tell the letting agent to arrange the handover of the property on the date agreed with the landlord.

jjlandlord

Is the landlord registered for vAT?

ashtray_heart

Thanks for replies so far.

There is nothing in our contract about ending tenancy early just a clause that says with landlord's permission we can sublet. When I spoke to Landlord about leaving he didn't want us to pay any fee. He said to let letting agent know and it was at this point I was told about their terms and that I had to pay an exit fee and rent until they find someone new. I'm happy to pay one or another but both seems extreme. Is there some law that I can show landlord that agreement is between us? He is unhappy with letting agency as it is as they haven't fixed problems but he will go with whatever they tell him to do as he says he is new at this and does not understand the law.

benjus

If you can get agreement in writing from the landlord agreeing to a surrender, the letting agency can take a hike. Just reply, accepting the surrender agreement and leave on the agreed date - if they try to take an exit fee from your deposit, dispute it.

However, until you do get that written surrender agreement you should consider yourself bound to the terms of the tenancy agreement.

pyueck

jjlandlord wrote: »

Is the landlord registered for vAT?

As rental income is exempt from VAT surely the VAT would be zero. However if the payment is deemed to be a charge for a service, then it could be subject to VAT. Only if the landlord is VAT registered though.

westernpromise

Who exactly is getting the 1 month's rent - the landlord or the letting agent?

If it's the former he can choose to waive it but if it's the latter they're going to want to take your money.