Being Charged £180 to RENEW tenancy agreement (London)

AnnoyedGuy

Hi All,

My username on here is actually quite relevant as I'm quite annoyed about this email my landlord sent me today. It reads:

Dear Tenants,

Amendments to Tenancy Agreements

During the last 12 months, we have seen many changes in the legislation that deals with tenancies and how they are regulated, together with an increase in tenants wishing to move out and be replaced during the term of the contract. We, together with your landlord have always been flexible with regard this matter and have assisted on all occasions, albeit that there is a considerable amount of work involved in this process.

As a result of this, we have incurred additional costs which we are no longer able to support. We are charged for preparing new tenancy agreements, un protecting and re protecting tenancy deposits, together with additional time and the administration this entails.

So, from today’s date, if a tenant who is in a Joint Tenancy Agreement with others, wishes to vacate earlier than the expiration of said contract, there will be a fee charged of £180 to the tenant who wishes to vacate. It will still be their and/or the other joint tenants responsibility to find a replacement tenant to fill their place.

Tenancy Renewals

In addition, if you wish to renew your tenancy for another fixed term, the same fee will now apply, as the same process as described above needs to be undertaken.

If you would like to discuss this matter in more detail, please contact our office and we will be happy to assist.

They've just dropped this on me and it doesn't say anything about paying an additional £180 in my contract - only in this email - if I choose to leave early.

On the renewal date, are they seriously charging £180 to RENEW with the same person?

I re-read the contract and the only thing that is REMOTELY related is the fact that they 'may' increase the rent (which they have already by 10% - to keep it in line with 'market rents') at renewal, but not charge £180 for renewal. I also question if whether I left early, that they could charge the £180? It doesn't say this in the signed contract at all. :mad:

How should I respond to this email from the letting agency?

G_M

Read:

* 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?

from today’s date, if a tenant who is in a Joint Tenancy Agreement with others, wishes to vacate earlier than the expiration of said contract, there will be a fee charged of £180 to the tenant who wishes to vacate. It will still be their and/or the other joint tenants responsibility to find a replacement tenant to fill their place.
Since a landlord is under no obligation to agree to a tenant leaving early (there's a contract!), this fee is both fair, and legally enforcible.

Tenancy Renewals

In addition, if you wish to renew your tenancy for another fixed term, the same fee will now apply, as the same process as described above needs to be undertaken.

This fee is also enforcible IF a tenant signs a new fixed term. Of course, the tenant has other options though. see the link above.

As to how to respond? by doing nothing. If and when your fixed term ends, either

* leave
* pay the £180 and sign a new fixed term contract, or
* pay nothing and move to aperiodic tenancy

mrginge

AnnoyedGuy wrote: »

Hi All,

My username on here is actually quite relevant as I'm quite annoyed about this email my landlord sent me today. It reads:

<snip>

They've just dropped this on me and it doesn't say anything about paying an additional £180 in my contract - only in this email - if I choose to leave early.

On the renewal date, are they seriously charging £180 to RENEW with the same person?

I re-read the contract and the only thing that is REMOTELY related is the fact that they 'may' increase the rent (which they have already by 10% - to keep it in line with 'market rents') at renewal, but not charge £180 for renewal. I also question if whether I left early, that they could charge the £180? It doesn't say this in the signed contract at all. :mad:

How should I respond to this email from the letting agency?

Renewal - they can charge whatever they want. You do not of course have to renew.

Early termination - what makes you think you have a right to leave early? Does it say so in your contract? If so, then please quote exactly what it says. If not then they are under no obligation to let you without requesting whatever fees they want.

thesaint

Sounds fine to me.
Don't renew or leave within the fixed term of the contract that you agreed to, and it will cost you absolutely nothing.

AnnoyedGuy wrote: »

How should I respond to this email from the letting agency?

Thank them, and say you understand.

AnnoyedGuy

G_M wrote: »

Read:

* 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?

This fee is also enforcible IF a tenant signs a new fixed term. Of course, the tenant has other options though. see the link above.

As to how to respond? by doing nothing. If and when your fixed term ends, either

* leave
* pay the £180 and sign a new fixed term contract, or
* pay nothing and move to aperiodic tenancy

I think I may leave, although the AT option sounds interesting. Though I assume that I can still be charged a processing fee for whatever they need to process?

mrginge

AnnoyedGuy wrote: »

I think I may leave, although the AT option sounds interesting. Though I assume that I can still be charged a processing fee for whatever they need to process?

I assume you mean for moving to a periodic?

They have nothing to process. It is an automatic right.

pinkteapot

If you simply stay in the property after a fixed term contract, it automatically becomes a periodic tenancy. If the rules are the same as when I rented, on a periodic tenancy you can leave on one month's notice (though the date must coincide with a rent payment date - eg pay rent on the 1st then you give a month's notice to the 1st), and the LL can chuck you out with two months' notice.

I liked the flexibility of a periodic tenancy as I wasn't tied in. If you're a good tenant then most LLs won't mind you rolling on to a periodic. However, letting agents hate it as they love to charge their admin fees for new fixed terms. So they may say that you're "not allowed" to stay without a new fixed term. I suspect that if you asked the LL direct, and nicely, that they'd say it's OK.

As above there's nothing to process as you won't get a new contract. The notice periods for a periodic tenancy are set in law.

Pixie5740

Assuming the OP's tenancy agreement doesn't say anything about a Contractual Periodic Tenancy then at the end of the fixed term he will automatically start a Statutory Periodic Tenancy, it's statutory law, the clue is in the name. What exactly would a letting agent have to process other than the acceptance that they won't be receiving £180 plus whatever the landlord was going to be charged?

OP whilst you might be tempted just to leave at the end of the fixed term keep in mind that to rent somewhere else you are likely to face letting agency fees for referencing, admin, etc. You may as well stay put and start the SPT. Is a landlord really going to go to the effort of serving notice (which does not end the tenancy) and then going to court to get an eviction order for a tenant who pays the rent on time and doesn't cause any hassle. £5 says the letting agent is also trying to charge the landlord a fee for you renewing. A further £5 says the letting agent would be quite happy if you left as they can then charge the landlord for finding another tenant as well as charging tenants for referencing. Kerching!

agrinnall

thesaint wrote: »

Saying there is nothing to process for a periodic tenancy is a childs way of thinking about things.

Please do teach us children what it is that needs to be processed on moving to a periodic tenancy.

csgohan4

about 100+ sounds about right for what EA change now a days for paper copy fees

thesaint

agrinnall wrote: »

Please do teach us children what it is that needs to be processed on moving to a periodic tenancy.

Are you of the opinion that nothing needs to be done?

If you think even a small task might need to be done, then there is nothing else to say.