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How to get out of a letting contract due to mold and flat sold issues

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Hi,

I am posting on behalf of my friend who is in a bit of predicament and would like to get feedback on opinion/rights:

- Originally rented a flat in London via agency from Jan 2016, renewed in Jan 2017 for 6 months, advised the letting agency that may she will not be able to contract for the full period as UK visa expiring Apr-17.
- Agency confirmed it will not be an issue to find someone else to sublet however believe my friend is on the contract until Sept-17
- My friend left flat on Apr-17 as she was not able to extend her UK visa. She tried to find someone to take over the lease, however two things happened since:

1. Mold problems was discovered in the bedroom - root cause ended up being faulty piping in the building and lack of air circulation in the flat. Letting agency (representing the owner) is disputing ownership of problem with building management.
2. Property sold, agency advised tenants (including my friend) they need to move out as soon as possible wanting to terminate the lease by July.

The impact of the above made it extremely difficult to my friend to find someone to take over the lease. The agency is holding her reliable for paying the rent as the contract is still under her name and threatening legal action if they refuse. My friend is trying to organize the council to assess the property to see if it is uninhabitable due to spreading mold problem.

1. What level actions can by friend take to protect herself?
2. What would you advise as the best course of action if you were in her position?

Thanks

Comments

  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    6 months from January is July so what is the bit about September?

    Why did you friend ask for another fixed 6 month term if they knew there was a possibility they would have to leave in April why not just go onto a rolling periodic tenancy for 4 months?

    If someone signs a contract for 6 months they are liable for the rent for the whole of the 6 months. The dispute with the freeholder doesn't alter this.
  • lincroft1710
    lincroft1710 Posts: 18,943 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    You say her visa expired last month (Apr 17). Is she still in UK?
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • benjus
    benjus Posts: 5,433 Forumite
    Part of the Furniture 1,000 Posts
    So where is your friend now? Has she left the UK? Has she tried negotiating a surrender of the tenancy with the landlord (not the agency)?
    Let's settle this like gentlemen: armed with heavy sticks
    On a rotating plate, with spikes like Flash Gordon
    And you're Peter Duncan; I gave you fair warning
  • gingercordial
    gingercordial Posts: 1,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    pred02 wrote: »
    Hi,

    - Agency confirmed it will not be an issue to find someone else to sublet however believe my friend is on the contract until Sept-17

    They presumably meant that if your friend found someone willing to take on the lease they wouldn't have an issue with that happening.

    They would not have guaranteed that a sub-lease would definitely happen. How on earth would they know if a willing sub-tenant would be found at the right time?

    Your friend signed a legal contract to pay rent to September (or July? why September if 6 months from January?) and she is obliged to do so. If she can find a sub-tenant, great. If she can't, she will need to keep paying. Just because the property is now not attractive to a sub-tenant doesn't excuse her from her obligations to keep paying the rent.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Your OP is confusing.

    Is this property in England or Wales?

    What is the exact start date of your friend's tenancy agreement in January 2017?

    If your friend has a 6 month fixed term contract and wants to leave the property and it seems the landlord wants her to leave the property, why is she trying to assign the tenancy to someone else?

    Has your friend been served any kind of notice by the landlord? If so, what?

    Note that the property being sold does not end the tenancy. The tenant will just have a new landlord.

    See G_M's guide to Ending/Renewing as AST for more information.
  • pred02
    pred02 Posts: 220 Forumite
    Part of the Furniture 100 Posts I've been Money Tipped!
    Hi,

    Apologies I was not clear, I have some more details:

    1. The flat is in London.
    2. Tenancy lease is from 21 December 2016. The lease is 12 months with a 6 month minimum period to reside with a 2 month notice period.
    3. No notice has been served by either tenant or landlord
    4. She has been notified that the sale of the property has fallen through
    5. She has not tried to negotiate directly with the landlord
    6. She assumed she would find a way to extend the visa. This has not worked out so she is no longer in the UK

    Questions:
    1. Is it possible to negotiate a break of the lease? How would we going about doing that?
    2. Can we prove that the flat is uninhabitable? The mold problem is severe and is a health risk. How would we go about proving that?

    There are two strategies that can be pursued:
    1. Attempt to fix the mold problem and then find a sublet to cover for the remaining period
    2. Stipulate that the flat is uninhabitable due to the mold problem and/or try to break or negotiate out of the lease

    Should we get a solicitor involved? Any feedback on the above strategies is much appreciated.
  • Red-Squirrel_2
    Red-Squirrel_2 Posts: 4,341 Forumite
    Are you the guarantor?
  • bris
    bris Posts: 10,548 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Why would the LL negotiate an existing tenancy? That horse has bolted. Your friend is liable for any and all losses due to the breach, no excuses will wash.


    The LL or agent will need to mitigate this loss by finding a new tenant but all costs of this are passed onto you friend, once a new tenant is found the missed rent and costs to that point can be calculated.


    The upside is if they are no longer in the UK then they can't be chased for the shortfall and there is very little chance the LL will even bother chasing it, unless of course there is a UK guarantor, if so they are liable now.
  • pred02
    pred02 Posts: 220 Forumite
    Part of the Furniture 100 Posts I've been Money Tipped!
    Thanks, I am not the guarantor. What about the mould problem, can't the tenant withhold rent until this is resolved? The room is uninhabitale.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    No the tenant cannot just withhold the rent. Has your friend reported the mould issue to the landlord in writing to the address for the serving of notices given in the tenancy agreement? If not that's the first step to take before eventually escalating the matter to environmental health.

    https://england.shelter.org.uk/housing_advice/repairs/what_to_do_if_your_landlord_wont_do_repairs

    From what you describe it sounds as though your friend has a 12 month fixed term with a break clause. Why doesn't your friend just use the break clause to end the tenancy? That would seem like the most simple solution.
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