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New owner wants to change tenancy agreement I signed only a week ago! HELP!

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mmmmmchellebelle
mmmmmchellebelle Posts: 8 Forumite
edited 11 March 2016 at 9:12PM in House buying, renting & selling
I have lived in my current flat for near 3 years. The time to renew my tenancy came, I paid the £60 fee and only last week signed a new contract for the same rent £425 for a further term of 24 months. I'm a model tenant. The letting agent emailed the landlord to ask about the 24 months term and they said no problem. Contract signed job done.

Prior to signing through my door I had received a bill for flat lease fees etc. I pay my rent to the letting agents the lease details had nothing to do with me. Our flat is in a residential complex. The name on the bill was not my current landlords. Fishy. So I took it to the letting agent anyway.

The day of my signing I received and took in another letter to my letting agent. This time to the 'new owners' and the bill was for the complex maintenance and fees. I handed this into my letting agent and asked what was happening. The letting agents replied 'they must have got the name wrong'.

So I signed a new contract, same rent £425, 24 months with the same landlord I have always been with. Happy days.

Today however the letting agent rang me to ask me if I could sign a new contract as the name of the landlord had changed and that they were happy to draw up a new contract free of charge for me for the term of 6 months.

So I asked, hang on a minute, I've just been allowed to sign a new contract for 24 months. What has happened? It's obvious the flat has been sold with sitting tenants. The letting agent said the landlord was the same it's just their relative had took over the mortgage and hence needed a contract with their name on.

Ok fine, they need a contract with their name on. I'm happy to sign again to get this changed for them but why only 6 months when I was allowed last week to sign for 24 months? I'm happy where I am and you've never had any issues with me as a tenant. In 6 months time I'm not paying £60 fees again for you to draw up another contract when I've just paid the fees and had one agreed for 24 months.

The letting agent said they'd ring the landlord and just check that the 24 months is still fine as it's the 'same landlord'.

Call back: The landlord is willing to offer you a 24 month contract but they want to up your rent £25 a month to £450 starting next month as other properties in the area can fetch up to £500 a month. :eek:

I checked online regarding changes to the tenancy a new landlord can make and it said that the terms of my tenancy will not change if the property is sold/passed on. Only the fact that the identity the landlord has changed. (landlordlawblog)

HANG ON I have a legally binding contract here saying I can remain in the property for 24 months and pay £425. That rent amount was fine last week!! AND I've just been told by the letting agent that they are willing to draw me up another contract for 6 months (with no mention of rent increase). The new landlord cannot just 'up' my rent as I've now shown interest in staying in the property for longer, hence ruining their chances of upping the rent when the rent renewal period comes around.

The letting agent said they'd ring their Manager and ask.

Help!!! Please :( I cannot worry about this until they decide to return my call on Monday

EDITTED TO ADD THE FOLLOWING AS ADVISED BELOW

My recently signed contract in mine and the previous landlord's name has no clause saying the rent can be increased. First line says 1. The Landlord agrees to let and the tenant agree to take the Property and Contents for the Term at the Rent payable as above. (24 months term, £425 rent)

It does say that the landlord can terminate the agreement by giving two months written notice, but a further clause says this notice cannot start within the first 6 months of the contract term. I signed on the 25th Feb.
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Comments

  • marksoton
    marksoton Posts: 17,516 Forumite
    What a mess.... I'm sure others will advise...
  • mildredalien
    mildredalien Posts: 1,057 Forumite
    Part of the Furniture Combo Breaker Debt-free and Proud!
    I'm pretty sure that once you have signed a tenancy agreement it is valid no matter who owns the property or claims to be the landlord, and I don't think they can force you to sign a new contract. I'm hoping to buy a house soon in an area with a lot of rented properties, so I've looked into it and basically unless you buy with vacant possession (no tenants currently in place) the tenants are entitled to continue with their tenancy agreement until it ends, they'd just pay you instead. I'd assume it would be the same for a general change of landlord and you are entitled to continue with your tenancy agreement.

    Rent increases can only be enforced through new contracts or with your agreement if you are on a fixed term tenancy (which it seems you are if you signed a 24 month contract) unless there is a clause within the agreement that says they can increase the rent.

    I'm not 100% sure on the above so hopefully someone else will confirm, but basically I think they are trying their luck!
    Savings target: £25000/£25000
    :beer: :T


  • [Deleted User]
    [Deleted User] Posts: 7,323 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 11 March 2016 at 6:25PM
    You are correct, the TA you have signed remains legally binding. The 'new' LL cannot put your rent up. However in two years time, you may well find yourself under notice. You could have problems getting repairs done.

    Is it worth paying £25 a month, with no further increases if that is written into the contract?

    But you don't have to.

    I would also be looking for official notification from the old LL that the new LL is really your new LL and with hold rent until you receive that. You find yourself in a very difficult position, unfortunately. I'd get advice from the CAB or preferably Shelter.

    I suspect the LA are finding themselves right in the middle of this mess, but you need to protect yourself.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Presumably the OP pays the rent to the letting agent who in turn pays it to the landlord so there's no reason for the OP to withhold rent. In fact withholding rent will just make things worse.

    Your tenancy agreement can't just be changed because the landlord has changed so if you've signed a 24 month contract at £475 then that's still your contract. Was it signed by your landlord or an agent acting on his behalf?
  • Guest101
    Guest101 Posts: 15,764 Forumite
    I have lived in my current flat for near 3 years. The time to renew my tenancy came, I paid the £60 fee and only last week signed a new contract for the same rent £425 for a further term of 24 months. I'm a model tenant. The letting agent emailed the landlord to ask about the 24 months term and they said no problem. Contract signed job done.

    Prior to signing through my door I had received a bill for flat lease fees etc. I pay my rent to the letting agents the lease details had nothing to do with me. Our flat is in a residential complex. The name on the bill was not my current landlords. Fishy. So I took it to the letting agent anyway.

    The day of my signing I received and took in another letter to my letting agent. This time to the 'new owners' and the bill was for the complex maintenance and fees. I handed this into my letting agent and asked what was happening. The letting agents replied 'they must have got the name wrong'.

    So I signed a new contract, same rent £425, 24 months with the same landlord I have always been with. Happy days.

    Today however the letting agent rang me to ask me if I could sign a new contract as the name of the landlord had changed and that they were happy to draw up a new contract free of charge for me for the term of 6 months.

    So I asked, hang on a minute, I've just been allowed to sign a new contract for 24 months. What has happened? It's obvious the flat has been sold with sitting tenants. The letting agent said the landlord was the same it's just their relative had took over the mortgage and hence needed a contract with their name on.

    Ok fine, they need a contract with their name on. I'm happy to sign again to get this changed for them but why only 6 months when I was allowed last week to sign for 24 months? I'm happy where I am and you've never had any issues with me as a tenant. In 6 months time I'm not paying £60 fees again for you to draw up another contract when I've just paid the fees and had one agreed for 24 months.

    The letting agent said they'd ring the landlord and just check that the 24 months is still fine as it's the 'same landlord'.

    Call back: The landlord is willing to offer you a 24 month contract but they want to up your rent £25 a month to £450 starting next month as other properties in the area can fetch up to £500 a month. :eek:

    I checked online regarding changes to the tenancy a new landlord can make and it said that the terms of my tenancy will not change if the property is sold/passed on. Only the fact that the identity the landlord has changed. (landlordlawblog)

    HANG ON I have a legally binding contract here saying I can remain in the property for 24 months and pay £425. That rent amount was fine last week!! AND I've just been told by the letting agent that they are willing to draw me up another contract for 6 months (with no mention of rent increase). The new landlord cannot just 'up' my rent as I've now shown interest in staying in the property for longer, hence ruining their chances of upping the rent when the rent renewal period comes around.

    The letting agent said they'd ring their Manager and ask.

    Help!!! Please :( I cannot worry about this until they decide to return my call on Monday


    Ok. A person cant 'take over' a mortgage, so the flat has indeed been sold (privately by the sounds of it)


    However, you have a valid contract on the face of it.


    Key issues to consider:


    1: Did the letting agent have authority to issue the 24 month contract? - On balance of probabilities it seems yes
    2: Is the contract valid? - it certainly looks like it is. The only real consideration being, did the ownership change prior to you signing the contract (yes it did) - so does that negate it? Not necessarily.


    In your shoes, I'd be offering to sign a new contract for 24 months for £350 (or whatever sum you wish) per month.


    Or simply refuse and carry on.


    The new landlord typically steps into the shoes of the old (as LL Blog describes). So timings are important


    in your favour:


    Even if the contract you signed is with the old landlord, and not the new owner, it changes little.


    If the old landlord cannot fulfil their contractual obligations (which is to provide you with a property for 24 months) you can of course sue them for your losses. I don't think that the contract would become frustrated as the LL must've known the property was being sold.
  • Rent increases can only be enforced through new contracts or with your agreement if you are on a fixed term tenancy (which it seems you are if you signed a 24 month contract) unless there is a clause within the agreement that says they can increase the rent.

    I'm not 100% sure on the above so hopefully someone else will confirm, but basically I think they are trying their luck!

    I don't see no clause saying they can increase their rent. First line says 1. The Landlord agrees to let and the tenant agree to take the Property and Contents for the Term at the Rent payable as above.

    It does say that the landlord can terminate the agreement by giving two months notice, but a clause says this notice cannot start within the first 6 months of the contract. I signed on the 25th Feb.

    It was awful it was like the letting agent was trying to negotiate with me on behalf of the landlord 'you can only stay here if'. I'm like you can't do that I have a legally binding contract that says I can stay here regardless of what you are telling me now. The letting agent was like well the name is wrong that makes the contract invalid. What gets me is how they allowed me to sign the new contract knowing that the name of the landlord was wrong. (I'd previously taken in a letter addressed 'as you are the new landlord we would like to introduce ourselves.' prior to signing my new contract.)
  • You are correct, the TA you have signed remains legally binding. The 'new' LL cannot put your rent up. However in two years time, you may well find yourself under notice. You could have problems getting repairs done.

    Is it worth paying £25 a month, with no further increases if that is written into the contract?

    But you don't have to.

    I would also be looking for official notification from the old LL that the new LL is really your new LL and with hold rent until you receive that. You find yourself in a very difficult position, unfortunately. I'd get advice from the CAB or preferably Shelter.

    I suspect the LA are finding themselves right in the middle of this mess, but you need to protect yourself.

    I was intending to move after the two years was up anyway. We went without a washing machine for 6 weeks because the previous landlord was useless at repairs. I'm only not moving now because I need to save to be able to move. I guess at least I know if the LL is going to kick up a stink about the rent increase they can't attempt to terminate the TA for 6 months. There's a clause saying they need to give two months notice to do so and it has to be six months into the TA.

    Best start saving :/
  • Pixie5740 wrote: »
    Presumably the OP pays the rent to the letting agent who in turn pays it to the landlord so there's no reason for the OP to withhold rent. In fact withholding rent will just make things worse.

    Your tenancy agreement can't just be changed because the landlord has changed so if you've signed a 24 month contract at £475 then that's still your contract. Was it signed by your landlord or an agent acting on his behalf?


    I pay the letting agent my rent. My contract was signed by the letting agent on their behalf 'the Landlord's Agent' and was witnessed by another member of LA staff.
  • Guest101 wrote: »
    Ok. A person cant 'take over' a mortgage, so the flat has indeed been sold (privately by the sounds of it)


    However, you have a valid contract on the face of it.


    Key issues to consider:


    1: Did the letting agent have authority to issue the 24 month contract? - On balance of probabilities it seems yes
    2: Is the contract valid? - it certainly looks like it is. The only real consideration being, did the ownership change prior to you signing the contract (yes it did) - so does that negate it? Not necessarily.


    In your shoes, I'd be offering to sign a new contract for 24 months for £350 (or whatever sum you wish) per month.


    Or simply refuse and carry on.


    The new landlord typically steps into the shoes of the old (as LL Blog describes). So timings are important


    in your favour:


    Even if the contract you signed is with the old landlord, and not the new owner, it changes little.


    If the old landlord cannot fulfil their contractual obligations (which is to provide you with a property for 24 months) you can of course sue them for your losses. I don't think that the contract would become frustrated as the LL must've known the property was being sold.

    I'm happy to sign a new contract for the same terms and for the same rent only with a view to help correct the name change. Other than that the LA knew there was a new owner from the correspondence I took in, why let me sign?

    I was wanting to move after the 2 years anyway. I guess if the landlord wants to end the agreement earlier he can serve me a 2 months notice (which the TA says he can) but it also says he cannot do that until 6 months after the TA commences. So at least I have another 8 months here?
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    edited 11 March 2016 at 9:38PM
    The letting agent is either lying or ignorant. You do not have to sign a new tenancy agreement just because your landlord has changed. My money is on the agent having eff'd up by offering you that new tenancy agreement in the first place and are now trying to back pedal.

    From what you describe it sounds as though whilst you've signed a 24 month contract there might be a 6 month break clause meaning you could be evicted sooner than you think. That's something to consider whilst deciding what you're going to do.
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