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Agent wants to renew tenancy with fixed term contract! Feel trapped!

The tenancy on our one bedroom flat ends at the end of November. Our flat is managed on behalf of the landlord by a letting agency. We had a letter from the managing letting agents saying that if we want to stay, we have to commit to a fixed 7 month (minimum) period, which will be June 2016! This means we cannot move out before the 7 months is up. If we do not agree to a fixed extension, we have to move out of our flat at the end of November, when our contract expires. In 15 years of renting I have only ever had contracts that revert to rolling with 2 months' notice after the 12 month tenancy is up.

Our situation is; we have a 2 week old baby. We are ready to buy a house and have been searching for 2 months but not found anything. So we want to stay where we are for now and give 2 months notice when we find somewhere. But committing to a 7 month contract means that if we find somewhere to buy it will be impossible to move while being committed to rent - we cant afford both. Do they want us to be trapped renting forever?!

The letting agents kindly explained that this is the way things are because it is better for the landlord who doesn't want to risk our flat being empty for a couple of weeks. To me, 2 months' notice seems like a fair option for both parties.

I hope this is clear! I am so angry. Is there anything I can do?
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Comments

  • His_Dudeness
    His_Dudeness Posts: 124 Forumite
    edited 30 September 2015 at 12:26PM
    Classical case of focussing only on the options provided to you by the agent instead of all the options actually available to you.

    You have the option to stay without signing a new fixed term.
    They might then give you notice but why would they if their concern is to have an empty flat?
  • RAS
    RAS Posts: 37,062
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    Which country are you in? Scottish law is different.
    If you've have not made a mistake, you've made nothing
  • Have you explained about the baby and wanting to buy a home? We are in a similar position. Our tenancy ran out in Feb, and they wanted us to resign but explained that we are looking at buying a house this year, and when we told them that, they let us go on a rolling month by month.
  • HappyMJ
    HappyMJ Posts: 21,115
    10,000 Posts Combo Breaker
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    Taucher wrote: »
    The tenancy on our one bedroom flat ends at the end of November. Our flat is managed on behalf of the landlord by a letting agency. We had a letter from the managing letting agents saying that if we want to stay, we have to commit to a fixed 7 month (minimum) period, which will be June 2016! This means we cannot move out before the 7 months is up. If we do not agree to a fixed extension, we have to move out of our flat at the end of November, when our contract expires. In 15 years of renting I have only ever had contracts that revert to rolling with 2 months' notice after the 12 month tenancy is up.

    Our situation is; we have a 2 week old baby. We are ready to buy a house and have been searching for 2 months but not found anything. So we want to stay where we are for now and give 2 months notice when we find somewhere. But committing to a 7 month contract means that if we find somewhere to buy it will be impossible to move while being committed to rent - we cant afford both. Do they want us to be trapped renting forever?!

    The letting agents kindly explained that this is the way things are because it is better for the landlord who doesn't want to risk our flat being empty for a couple of weeks. To me, 2 months' notice seems like a fair option for both parties.

    I hope this is clear! I am so angry. Is there anything I can do?
    You don't have to tell them you're leaving on the last day of the tenancy. You can just go and hand in the keys. It's polite to tell the landlord but you don't have to. Technically for the landlord a periodic tenancy is better as you need to give a minimum of one months notice to move out. Then the landlord can start marketing the property and avoid a long void.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • Guest101
    Guest101 Posts: 15,764 Forumite
    You will, automatically, switch to a rolling monthly contract (with 1 month's notice, not two) if you stay even a second past the fixed term.


    The LL is of course able to serve a two months notice of court, then court, then bailiffs, which takes in total 4-5 months - which should fit nicely with your house purchase.
    I would tell the agents you are considering your options and then not reply any further.
  • ViolaLass
    ViolaLass Posts: 5,764 Forumite
    Not being able to move until June 2016 wouldn't kill buying somewhere next year though. By the time you've found somewhere, the chain has completed and everyone is happy, that could easily get you to May or so (leaving you free to give notice to move out in June or, as pointed out above, just leave in June).
  • mrginge
    mrginge Posts: 4,843 Forumite
    Are you saying that the LL should forgoe their requirements to just fit in with yours?

    Is it the LLs fault that you haven't found somewhere to buy?

    Have you explained to the LL that you are looking to purchase and you would prefer the flexibility of an SPT and that you will work with them to ensure that when you do look to leave, that you'll be accommodating with their re-letting process to help minimise any void period?

    It's interesting that you seem to want to be able to organise your life so that you can minimise the amount of time that may cost you money, yet the evil landlord gets a kicking for trying to do the same thing.
  • mrginge it's 99% likely that the landlord has nothing to do with this it's the letting agent trying to get fees from landlord and tenant for redoing the agreement.
  • mrginge wrote: »
    Are you saying that the LL should forgoe their requirements to just fit in with yours?

    Is it the LLs fault that you haven't found somewhere to buy?

    Have you explained to the LL that you are looking to purchase and you would prefer the flexibility of an SPT and that you will work with them to ensure that when you do look to leave, that you'll be accommodating with their re-letting process to help minimise any void period?

    It's interesting that you seem to want to be able to organise your life so that you can minimise the amount of time that may cost you money, yet the evil landlord gets a kicking for trying to do the same thing.

    Ha! Landlord yourself, are you? Yes, I think it is unethical to try and force someone into a fixed 7 month (minimum) contract at the end of 2 years renting. I think it is unethical of the letting agent to present it as the only option so that they can extract more money from me (£100 'admin' fee for the new contract), especially as the letting agent does not, and has never, provided a service to me.

    The letting agent has made it clear that the Landlord has instructed them to offer a minimum of a 7 month fixed contract. The letting agent has told me that they will re-market the property for rent in the middle of November if we do not sign the 7 month extension.

    A rolling contract with a notice period for EITHER landlord or tenant seems like the best option for all parties.

    Or should we do everything in our power to make life easier for landlords and who cares about tenants?
  • Alter_ego
    Alter_ego Posts: 3,842
    Part of the Furniture 1,000 Posts Name Dropper
    Forumite
    Don't sign, don't move, pay the rent. Simples!
    I am not a cat (But my friend is)
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