End of fixed term AST, do we have to sign again?

black_wings

Hi there.
Our fixed term 12 month assured shorthold tenancy agreement is coming to an end in May. The estate agents have sent us a new AST for signing another 12 months. Which was all well and good until we found we may be in a position to buy a flat around September. Though it's not confirmed so i don't really want to signal to the estate agents that we are thinking of leaving in case they try to serve us notice. If I don't sign the agreement do I automatically go on on periodic rolling? I assume they will be chasing me up to sign though.
I have read the new AST and I can't see anything in there with regards to a 6 month break clause or anything (do they have to offer that?) it just states that "Strictly with the landlord’s or his agents prior written consent and subject to certain conditions that may include
the landlord’s reasonable costs associated with the re-letting of the premises, the tenant might be allowed to surrender or give up this tenancy before it could otherwise lawfully be ended. "

So I'm a bit concerned that if we did try to leave early we would be liable for the full 12 months rent. Is there any sensible way around this?
I'm worried about asking them to simply go on to a periodic rolling in case they sniff that we may be looking to move out and simply serve us notice at the end of our current AST. Is that likely to happen?

pmlindyloo

black_wings wrote: »

Hi there.
Our fixed term 12 month assured shorthold tenancy agreement is coming to an end in May. The estate agents have sent us a new AST for signing another 12 months. Which was all well and good until we found we may be in a position to buy a flat around September. Though it's not confirmed so i don't really want to signal to the estate agents that we are thinking of leaving in case they try to serve us notice. If I don't sign the agreement do I automatically go on on periodic rolling? I assume they will be chasing me up to sign though.
I have read the new AST and I can't see anything in there with regards to a 6 month break clause or anything (do they have to offer that?) it just states that "Strictly with the landlord’s or his agents prior written consent and subject to certain conditions that may include
the landlord’s reasonable costs associated with the re-letting of the premises, the tenant might be allowed to surrender or give up this tenancy before it could otherwise lawfully be ended. "

So I'm a bit concerned that if we did try to leave early we would be liable for the full 12 months rent. Is there any sensible way around this?
I'm worried about asking them to simply go on to a periodic rolling in case they sniff that we may be looking to move out and simply serve us notice at the end of our current AST. Is that likely to happen?

You are correct that if you do not sign the new tenancy agreement you will automatically go onto a statutory periodic tenancy.

So what are your options?

: Do not sign the new agreement and go onto a statutory periodic agreement
: Sign and then ask to surrender the tenancy and see what terms they will agree to - cost of re letting property etc as stipulated in the agreement although legally you are liable for the rent until the end of the tenancy
: ask for a 6 month break clause in new tenancy agreement
: move to somewhere new with a 6 month tenancy agreement
: sign the new agreement and don't buy until later

You are correct that if you do not sign a new tenancy agreement then the LL could start possession proceedings but this could take months. A risk you would have to take.

Even if you 'came clean' and said you might move then the above might still apply.

itchyfeet123

black_wings wrote: »

I'm worried about asking them to simply go on to a periodic rolling in case they sniff that we may be looking to move out and simply serve us notice at the end of our current AST. Is that likely to happen?

The agents have incentives to either regularly turn over tenants or to get tenants to (pay to) sign new contracts.

The LL has an incentive to keep known good tenants on with the possibility of having to find new tenants of unknown quality at some future date over having to find new tenants of unknown quality now.

If you have some kind of relationship with your LL -- eg, you contact them directly for repairs rather than the agent -- you could get in touch and see how they feel. The LL who is in contact with his/her tenants is more likely to see things the way I describe above.

But if your LL has the agent handling everything, they're probably not open to you starting a discussion with them directly. They are more likely to agree to whatever the agent suggests (see the difference in incentives for the agent and LL above). They value low hassle and certainty over optimising their investment, and are likely to prefer fixed terms to periodic tenancies, even if the periodic tenancy is for a known tenant and the fixed term is for an unknown.

So, the agent will probably try to bully you into signing a new AST with the threat of being served notice if you don't. You are in the best position to judge whether the threat will carry any weight based on your knowledge of the LL.

black_wings

Thanks. Unfortunately we don't have any relationship with the landlord and everything is through the agent. The agent wants us to sign a new AST for another 12 months but has confirmed there are no fees for signing this - so at least they have an ounce of decency
I remember when we originally viewed the flat before moving in the agent said there was going to be 'a standard 6 month break clause' but looking over the current AST and the new AST there is no such mention of one. It was maybe an oversight on their part.
It didn't occur to me to ask them to write one in so I guess I can try contacting them and get one written into the new contract.
It's a new build HTB we are going for and reservations are coming in the next few weeks so perhaps we can delay signing the AST for a few more weeks as if we aren't able to reserve (there is high demand) then we will be happy to sign for a further 12 months.

Guest101

Some agents are decent, so worth speaking to them.


It's rare to evict paying tenants, especially if their income in from management rather than fees

black_wings

Guest101 wrote: »

Some agents are decent, so worth speaking to them.


It's rare to evict paying tenants, especially if their income in from management rather than fees

Thanks for the reassurance. We are good tenants so I hope that they wouldn't evict us just because they thought we might be leaving soon anyway. It would probably just be easier for them to wait until we serve notice wouldn't it?
I'm just terrible worrier.
i suppose the answer is I SHOULD JUST CONTACT THE AGENTS ANDSEE WHAT THEY SAY.

Guest101

black_wings wrote: »

Thanks for the reassurance. We are good tenants so I hope that they wouldn't evict us just because they thought we might be leaving soon anyway. It would probably just be easier for them to wait until we serve notice wouldn't it?
I'm just terrible worrier.
i suppose the answer is I SHOULD JUST CONTACT THE AGENTS ANDSEE WHAT THEY SAY.

The agent cant evict you anyway, only the landlord can as that is who your contract is with.


Even if they wanted to, recent figures put avg eviction at 42 weeks (though that figure does include a huge number in London, where courts are more overwhelmed), 4-5 months is typical

black_wings

Guest101 wrote: »

The agent cant evict you anyway, only the landlord can as that is who your contract is with.


Even if they wanted to, recent figures put avg eviction at 42 weeks (though that figure does include a huge number in London, where courts are more overwhelmed), 4-5 months is typical

Lucky for us we are in London then
Our current AST is ending on 6th May. If I understand it correctly, they don't need to organise eviction if the fixed term is just naturally coming to an end anyway?

Guest101

black_wings wrote: »

Lucky for us we are in London then
Our current AST is ending on 6th May. If I understand it correctly, they don't need to organise eviction if the fixed term is just naturally coming to an end anyway?

Sorry not sure what you mean.


When your fixed term ends there are 2 possibilities


1: you stay (whether you sign a new tenancy or not)
2: you move out voluntarily (no notice required, if you are out on the last day - though polite to do so)

black_wings

Guest101 wrote: »

Sorry not sure what you mean.


When your fixed term ends there are 2 possibilities


1: you stay (whether you sign a new tenancy or not)
2: you move out voluntarily (no notice required, if you are out on the last day - though polite to do so)

Sorry I just meant for example if we say to the agent we don't want to sign another 12 month AST we want to go periodic and they say okay we don't want you we want another tenant in, when the current AST ends on 6th May do we have to leave straight away or legally are we allowed to stay in the property continuing to pay rent but wait for them to start eviction proceedings?

Guest101

black_wings wrote: »

Sorry I just meant for example if we say to the agent we don't want to sign another 12 month AST we want to go periodic and they say okay we don't want you we want another tenant in, when the current AST ends on 6th May do we have to leave straight away or legally are we allowed to stay in the property continuing to pay rent but wait for them to start eviction proceedings?

Oh I see.


There are only 2 entities which can end a tenancy


1: the tenant - serve notice or leave as above
2; The courts - by eviction.


(a joint agreement, which I feel falls under '1' is also possible - ie you both agree to end (surrender) the tenancy)


So no, they cant get you out on May 7th. (unless you choose to go)