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Rent contract renewal due but never signed the previous contract

A year after renting the property I live in the estate agent/landlord said I had to renew my contract by signing a 12 month contract and paying a £125 fee, for the privilege of pressing 'print' and sending me the same contract when I first moved in.

However, the contract I signed when I first moved in had an error because it stated that the tenant had to give 2 months notice to terminate the tenancy, when in actual fact it is suppose to be 1 months notice. The agency crossed out the word 'two' and wrote the word 'one' and asked me to initial the change before taking a copy.

The renewal contract had the same error and stated two months notice instead of one, so I informed the agency and shockingly they had no record of this amendment to the original contract. I explained how it was amended when I signed the contract and asked for it to be amended on the renewal contract, but they told me they would need to confirm with the landlady before making any changes.

A few weeks later the amended contract arrived, but it still stated two months to end the tenancy. All they had done was to reword the paragraph, so because of this I never signed the contract and expected the agency to chase me, but surprisingly they never did. Therefore I am not legally bound to the contract, but it wouldn't surprise me if they had forged my signature !

Now they are asking me to renew my contract again, so I am tempted to say that I will only sign the contract if they correct the error but refuse to pay the £125 fee, because the last time the contract was renewed I never signed it and they never chased me for it.

Therefore I paid £125 for a contract that was incorrect and never valid. Where do I stand legally in refusing to pay another £125 to renew the contract, when the last renewal was never corrected or signed ?

I am prepared to sign the contract renewal providing
the agency correct the error, but I am not prepared to pay another £125 fee as I paid this last year for a contract that has been invalid for the last 12 months.
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Comments

  • mrginge
    mrginge Posts: 4,843 Forumite
    Why not just not sign a new contract?
  • sky_rat
    sky_rat Posts: 268 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    mrginge wrote: »
    Why not just not sign a new contract?

    I thought I have to sign the contract ? I would prefer a monthly rolling contract, thats what Ive done with the previous 5 properties Ive rented. But the agency or landlady are insisting on a 12 month contract... but allow one months written notice to end the tenancy after 6 months (although the contract is incorrectly worded as 2 months notice). They also want to increase the rent by £10 a month.

    They tried to increase the rent £25 a month last year but I kicked off and the landlady said she would rather keep me as a tenant (being as I am a good tenant, ALWAYS pay my rent on time, take care of the property and never cause any problems). So she was prepared to keep my rent the same.... until now.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    * Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

    I would prefer a monthly rolling contract,...

    Then don't sign.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    sky_rat wrote: »
    A year after renting the property I live in the estate agent/landlord said I had to renew my contract by signing a 12 month contract and paying a £125 fee, for the privilege of pressing 'print' and sending me the same contract when I first moved in.
    You have a choice: sign and pay, or don't sign and stay on a periodic.

    However, the contract I signed when I first moved in had an error because it stated that the tenant had to give 2 months notice to terminate the tenancy, when in actual fact it is suppose to be 1 months notice. The agency crossed out the word 'two' and wrote the word 'one' and asked me to initial the change before taking a copy.
    1) what error? If the contract said 2 months in a subsequent Contractual periodic, then it's 2 months.
    2) if the LL/agent offered to reduce this to one month, great! The fact you did not sign is irrelevant. Did they?


    The renewal contract had the same error and stated two months notice instead of one, so I informed the agency and shockingly they had no record of this amendment to the original contract. I explained how it was amended when I signed the contract and asked for it to be amended on the renewal contract, but they told me they would need to confirm with the landlady before making any changes.
    Of course. Only the LL can agree a change. Wait and see if she agrees.

    A few weeks later the amended contract arrived, but it still stated two months to end the tenancy. All they had done was to reword the paragraph, so because of this I never signed the contract and expected the agency to chase me, but surprisingly they never did. Therefore I am not legally bound to the contract, but it wouldn't surprise me if they had forged my signature !
    So has the original fixed term now expired? You now have either
    * a Statutory Periodic Tenancy or
    *
    a Contractual Periodic Tenancy
    We'd need to see the precise wording to be sure which
    Now they are asking me to renew my contract again, so I am tempted to say that I will only sign the contract if they correct the error but refuse to pay the £125 fee, because the last time the contract was renewed I never signed it and they never chased me for it.
    Either
    1) get the contract amended, sign and pay or
    2) sign as it is and pay or
    3) don't sign and remain on a periodic tenancy

    Therefore I paid £125 for a contract that was incorrect and never valid.
    The original one was correct, and valid.
    Where do I stand legally in refusing to pay another £125 to renew the contract, when the last renewal was never corrected or signed ?
    Forget the last, expired, contract. The choice you have is what to do next, as explained above

    I am prepared to sign the contract renewal providing
    the agency correct the error,
    I repeat - what error? Whether the contract says 1 month or 2 months is down to what the 2 parties decide/agree
    but I am not prepared to pay another £125 fee as I paid this last year for a contract that has been invalid for the last 12 months.

    * Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Is it the landlord or the letting agent who want you to sign? I'd put money on it being the letting agent who will be trying to charge both you and the landlord for a renewal.
  • sky_rat
    sky_rat Posts: 268 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    edited 4 June 2015 at 8:38PM
    G_M wrote: »
    * Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

    Below is the paragraph in the original contract when I first moved into the property. I was verbally told that the notice period was one month but before signing the contract I noticed that it said two months. I pointed this out to the estate agent and they realised it was wrong so corrected it by crossing out two and writing one...

    Contract.png

    The following renewal contract also stated two months and when I explained that the original contract was amended to one month they had no record of it (which is concerning). I asked them to change the renewal contract to one month instead of two, but they only reworded the paragraph and still stated two months notice. I never go round to signing it and they never chased me, so as I preferred a rolling contract I just left it.... although it cost me £125 for the privilege !

    This is why I refuse to pay another £125 seeing as the last time I paid the fee the contract was never signed.

    Can I refuse to sign the 12 month renewal contract and keep it as a rolling contract ? Or could the landlady kick me out of the property if I dont sign the renewal contract ?
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Ah!

    That clause is a 'Break Clause'.

    It only applies if you wish to end the tenancy early ie before the end of the agreed 12 months. It does NOT apply if you are ending the tenancy at the normal (12 month) expiry date. Nor does it apply after the 12 months if the tenancy goes periodic.
    Can I refuse to sign the 12 month renewal contract and keep it as a rolling contract ? Or could the landlady kick me out of the property if I dont sign the renewal contract ?
    Have you yet read the link provided? It's all there!

    * Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?
  • sky_rat
    sky_rat Posts: 268 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    G_M wrote: »
    Ah!

    That clause is a 'Break Clause'.

    It only applies if you wish to end the tenancy early ie before the end of the agreed 12 months. It does NOT apply if you are ending the tenancy at the normal (12 month) expiry date. Nor does it apply after the 12 months if the tenancy goes periodic.

    Have you yet read the link provided? It's all there!

    * Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

    Thanks for your help G_M.

    So just to clarify:

    - it is perfectly legal for me to stay in the property and it will automatically become a statutory periodic tenancy (SPT) ?
    - I am not obliged to pay a fee for a fixed term contract (FT) and sign the contract ?
    - I am not obliged to pay the increase in rent (£10 pcm) ?

    The only worry is the following statement:

    It is worth warning that where a landlord, and/or his agent, really want a new FT, there is the possibility they they might issue a S21 Notice (1st step to eviction) if the tenant just moves to a SPT. As stated, a SPT offers far less security.

    But at the end of the day, is the landlady/estate agent really going to kick me out when:

    1. I've been a good tenant for the last 2 years
    2. I have always paid my rent on time
    3. The cost of finding a new tenant will cost more than the £10 a month rise in rent
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    sky_rat wrote: »
    Thanks for your help G_M.

    So just to clarify:

    - it is perfectly legal for me to stay in the property and it will automatically become a statutory periodic tenancy (SPT) ?
    - I am not obliged to pay a fee for a fixed term contract (FT) and sign the contract ?
    - I am not obliged to pay the increase in rent (£10 pcm) ?

    The only worry is the following statement:

    It is worth warning that where a landlord, and/or his agent, really want a new FT, there is the possibility they they might issue a S21 Notice (1st step to eviction) if the tenant just moves to a SPT. As stated, a SPT offers far less security.

    But at the end of the day, is the landlady/estate agent really going to kick me out when:

    1. I've been a good tenant for the last 2 years
    2. I have always paid my rent on time
    3. The cost of finding a new tenant will cost more than the £10 a month rise in rent
    Again:
    Have you yet read the link provided? It's all there!
    and since that link is one of mine, if you wish to check my legal knowledge there is little point me repeating it: if I was wrong there I'll be wrong here too!

    Maybe someone else will reassure you.
  • sky_rat
    sky_rat Posts: 268 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Sorry G_M I wasn't suggesting you were wrong or needed reassuring from someone else !

    I have read the link (and the link about rent increase)... I just wanted to clarify that my understanding is correct. I just want to be sure as I dont want to risk loosing the property and having to find an alternative and move (I am reluctant to move again until I am able to buy a house).

    BUT more importantly, I wanted an opinion about whether the landlady / letting agent is likely to end the tenancy if I insisted on SPT and refused to pay the £10 increase in rent. Especially considering the points I made:

    i.e.
    1. I've been a good tenant for the last 2 years
    2. I have always paid my rent on time
    3. The cost of finding a new tenant will cost more than the £10 a month rise in rent
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