Exiting tenancy early. Is this unreasonable?

mrginge

ViolaLass wrote: »

But it's not (apparently) written in the contract that the OP signed. Neither is the 'you can't sublet without staying in the property' condition.

How, therefore, can the OP be held to them?

Why do you think an early surrender charge has to be written in the contract?

ViolaLass

mrginge wrote: »

Why do you think an early surrender charge has to be written in the contract?

Doesn't any charge to which the agency might want to hold them have to be written into the contract?

My bank can't suddenly add ERCs to my mortgage if I overpay, without it having been in the T&Cs at the beginning (and my having agreed to them).

mrginge

ViolaLass wrote: »

Doesn't any charge to which the agency might want to hold them have to be written into the contract?

My bank can't suddenly add ERCs to my mortgage if I overpay, without it having been in the T&Cs at the beginning (and my having agreed to them).

I agree, no they can't. Specifically because that mortgage contract does contain terms outlining the exit fees.

The OPs contract does not contain such terms. Therefore the exit conditions are up for negotiation if the OP wishes to leave early. The OP is perfectly entitled to reject those conditions if they wish and continue fulfilling their continuing obligations under the contract.

bris

The letting agent also has a contract with the LL and that is to collect 10% or there abouts of the rent for fees every month. They want paid regardless of the conversation the LL had with the tenant.


The tenant can if they choose to just leave when the time comes, this forces the LL to mitigate the loss by finding a new tenant. £1500 + VAT exit fee plus still paying the rent would be seen as a penalty and be unenforceable. The LL would have to prove to the courts that he was active in seeking a new tenant and show the reasonable cost associated with this, he could then claim for these costs plus the rent from leaving too finding a new tenant.


This is how the courts deal with broken contracts, the tenants are liable but mitigating losses must be done, unfair penalties over and above the loss are unenforceable.

mrginge

bris wrote: »

The tenant can if they choose to just leave when the time comes, this forces the LL to mitigate the loss by finding a new tenant. £1500 + VAT exit fee plus still paying the rent would be seen as a penalty and be unenforceable. The LL would have to prove to the courts that he was active in seeking a new tenant and show the reasonable cost associated with this, he could then claim for these costs plus the rent from leaving too finding a new tenant.


This is how the courts deal with broken contracts, the tenants are liable but mitigating losses must be done, unfair penalties over and above the loss are unenforceable.

Landlord has no duty to mitigate loss of rent.

ViktorOnopko

Hi

I've just had this very conversation with my LA. Our contract runs until Sept 1st 2015 and we've been offered a 2-bed private rental in the same village which we've been to see and really like. I was aware my contract stated that if we leave early /some/ costs could be incurred but was thinking it'd be in the order of £100-£200, I'm absolutely shocked that it's one months rent + VAT. The LA is talking to the LL tonight and he's a reasonable man (a vicar) so he might be ok, especially given our proximity to the end date.

If we have to pay 1 months rent + VAT and also support any additional costs until a new tenant is found I seriously don't think I can move out. However, that then means I'm left with no option but to find somewhere, anywhere, when our contract expires.

This is not an agreement/rule which supports people and is a major drawback of renting.

Currently feeling stuck between a rock & a hard place as we've been desperately looking to find an affordable 2 bed place in the village we're currently in.

Kevie192

ViktorOnopko wrote: »

This is not an agreement/rule which supports people and is a major drawback of renting.

What? No it isn't. You signed up for a contract, knowing full well that the end date was in September. Now you want to move out sooner the Landlord can pretty much hold you to ransom as only with his agreement can the tenancy end before that date.

If you wanted the flexibility of moving whenever you wanted you should have taken a SPT.

ViktorOnopko

Kevie192 wrote: »

What? No it isn't. You signed up for a contract, knowing full well that the end date was in September. Now you want to move out sooner the Landlord can pretty much hold you to ransom as only with his agreement can the tenancy end before that date.

If you wanted the flexibility of moving whenever you wanted you should have taken a SPT.

Valid, yes. However, naturally people will want to move - either when buying or finding a different property (change of location, bigger/small etc) and if you can only move at the end of your tenancy with no costs then you're in a position where you probably have to make do, rather than find a property which ticks all of your boxes.

It's also evident, from both my contract and the detail above, that the contract does not do enough to inform you of the potential costs and impact associated with wanting to end your tenancy early.

Kevie192

ViktorOnopko wrote: »

Valid, yes. However, naturally people will want to move - either when buying or finding a different property (change of location, bigger/small etc) and if you can only move at the end of your tenancy with no costs then you're in a position where you probably have to make do, rather than find a property which ticks all of your boxes.

It's also evident, from both my contract and the detail above, that the contract does not do enough to inform you of the potential costs and impact associated with wanting to end your tenancy early.

I think the contract probably makes is crystal clear that the contract continues until the end or it is mutually agreed. That's how contracts work.

You don't always have to have a fixed term contract. If you do nothing at the end of a fixed term the contract will turn into a SPT or 'rolling' monthly contract, meaning you only have to give 1 'contract period's notice to end the contract. So, allow the first 6 month fixed term roll into an SPT and then give notice when you find somewhere else if you want to move. Simples.

G_M

Every contract I have ever seen shows, on the front page, near the top, usually in pretty large print, the start date and the end date (or 'term' ie length.

You can hardly not see it. So you can either accept it (and then nticipate there will be costs in changing it later, if possible) or reject, or negotiate a different type of tenancy.

You benefit from this fixed term, and the clarity, by knowing the landlord cannot evict you during this time (except in rare cases eg rent arrears) unless you agree. And of course if he asks, you can impose any conditions you want on your agreement.

And vice verse.