Are we allowed a rolling monthly contract?

Guest101

How would this affect a s.21 notice? my mind has gone blank

G_M

As saajan and pixie say:

* You have an initial 6 month fixed term with rent payable on a 6 month basis.
* when the FT expires (21/1/18) a 6 month periodic tenancy arises.
* rent for that periodic (rolling) tenancy is payable 6 monthly (in advance)
* notice must expire at the end of a period (ie after a further 6 months)

You need to get this contract altered or walk away.

The problem is that because of your referencing problem (whatever it was) the landlord wants additional security - not just now, but in the future too ie after 6 months.

So he wants either a guarantor, or 6 months rent in advance every 6 months.

If he's willing to permit a monthly periodic tenancy after the initial 6 months, the contract needs altering to specify monthly payment via a Contractual Periodic Tenancy following the expiry of the initial fixed term.

G_M

Guest101 wrote: »

How would this affect a s.21 notice? my mind has gone blank

Interesting question.

In a periodic tenancy that follows a fixed term, a S21 must provide 2 calender months notice - so LL could evict at any point in the 6 month period.

The tenant could not.

At least that's my belief.

Guest101

G_M wrote: »

Interesting question.

In a periodic tenancy that follows a fixed term, a S21 must provide 2 calender months notice - so LL could evict at any point in the 6 month period.

The tenant could not.

At least that's my belief.

That's what I thought and was similarly interested in how consumer protection would view this.


And how, if we are correct, a court may feel about eviction costs

ThePants999

Apparently the Deregulation Act (that's the thing that changed how S21s work in 2015, right?) creates a statutory right for tenants to claim back "excess" rent if they're evicted via S21 before the end of a rental period.

cybervic

I wrote to the agent asking then to change the contract, here is their reply:

With regards to going rolling after, because you are paying 6 months in advance, this means your tenancy can’t just rolling month by month. However, at the end of this 6 month agreement, normally around month 4 we will make contact with you to see how you want to renew. If you still want to pay monthly, we will just need to draw up a new monthly agreement, and if the landlord wants extra refereeing carry these out then. So it is absolutely an option for you. Please renewal is strictly subject to no notice being served.

I then check the tenancy agreement again, the bit about termination says:

Termination of this Agreement: By not less than 2 months written notice* given by either
party to the other - such notice to be given by the Landlord in accordance with S21(4)
Housing Act 1988 as amended

*Not to expire within a fixed term or outside of a brake clause.
*Notice can only be deemed served in line with any rent due date and cannot be served 'mid-month'

Am I right to think what this means is that both Landlord and I can only terminate the contract by giving 2 month notice before 6 month period is up?

I am not sure why can't they change the contract, OH is quite upset with them because we really don't want to commit to another 6 month especially when we specifically asked about it during the viewing. It's too late to walk away because we are all set to move on Sunday and everything is booked.

Guest101

cybervic wrote: »

I wrote to the agent asking then to change the contract, here is their reply:

With regards to going rolling after, because you are paying 6 months in advance, this means your tenancy can’t just rolling month by month. However, at the end of this 6 month agreement, normally around month 4 we will make contact with you to see how you want to renew. If you still want to pay monthly, we will just need to draw up a new monthly agreement, and if the landlord wants extra refereeing carry these out then. So it is absolutely an option for you. Please renewal is strictly subject to no notice being served.

I then check the tenancy agreement again, the bit about termination says:

Termination of this Agreement: By not less than 2 months written notice* given by either
party to the other - such notice to be given by the Landlord in accordance with S21(4)
Housing Act 1988 as amended

*Not to expire within a fixed term or outside of a brake clause.
*Notice can only be deemed served in line with any rent due date and cannot be served 'mid-month'

Am I right to think what this means is that both Landlord and I can only terminate the contract by giving 2 month notice before 6 month period is up?

I am not sure why can't they change the contract, OH is quite upset with them because we really don't want to commit to another 6 month especially when we specifically asked about it during the viewing. It's too late to walk away because we are all set to move on Sunday and everything is booked.

But you can just move out at the end of the 6 months.

cybervic

Guest101 wrote: »

But you can just move out at the end of the 6 months.

We could of course, except moving is a lot of hassle/stress and we are looking to buy next year so would not really want to spend any more money on temp place. That's why we always ask if we could have monthly rolling contract after 6 month when viewing a flat because it was important for us to have that flexibility.

saajan_12

cybervic wrote: »

I wrote to the agent asking then to change the contract, here is their reply:

With regards to going rolling after, because you are paying 6 months in advance, this means your tenancy can’t just rolling month by month. -
False, the contract CAN be rephrased to a monthly contract, rent quoted as a monthly figure, with a clause about how rent is paid specifying 6 months upfront. Then this would 'just go rolling month to month' after 6 months. If the want to that is. However, at the end of this 6 month agreement, normally around month 4 we will make contact with you to see how you want to renew. If you still want to pay monthly, we will just need to draw up a new monthly agreement, and if the landlord wants extra refereeing carry these out then. Yes,
you can sign a new contract to pay monthly, but as the agent admits, the LL could refuse or demand further fees/checks. Then you can either roll into the 6monthly periodic tenancy or leave before the end of the first 6 months, which may mean more fees to move elsewhere.
So it is absolutely an option for you. Please renewal is strictly subject to no notice being served.

I then check the tenancy agreement again, the bit about termination says:

Termination of this Agreement: By not less than 2 months written notice* given by either
party to the other - such notice to be given by the Landlord in accordance with S21(4)
Housing Act 1988 as amended

*Not to expire within a fixed term or outside of a brake clause.
*Notice can only be deemed served in line with any rent due date and cannot be served 'mid-month'

Am I right to think what this means is that both Landlord and I can only terminate the contract by giving 2 month notice before 6 month period is up? - the LL must give 2 months notice after 4 months, to expire on or after 6 months and then apply to court to evict. You can leave without notice, by the end of the 6 months. If you stay on past 6 months without signing a new contract, then you must give 1 period's notice (6 months).


I am not sure why can't they change the contract, OH is quite upset with them because we really don't want to commit to another 6 month especially when we specifically asked about it during the viewing. It's too late to walk away because we are all set to move on Sunday and everything is booked.

The options are
1) negotiate to amend the terms of this contract to a monthly tenancy, with 6 month fixed term and 6 months rent paid upfront
2) stay on these terms and leave within 6 months
3) stay on these terms and move to rolling 6 monthly after the fixed term, requiring 6 months notice
4) stay on these terms and sign a new contract with LL before the end of the fixed term, to start a monthly tennacy. Note this is subject to the LL agreeing and whatever fees / extra checks they demand.

Sounds like you can't commit to no. 3 and No 1 would be the best solution for you but they seem to be refusing. So it depends whether you are willing to take the risk on them agreeing to monthly (No 4) or move in 6 months time (No 2).

G_M

ThePants999 wrote: »

Apparently the Deregulation Act (that's the thing that changed how S21s work in 2015, right?) creates a statutory right for tenants to claim back "excess" rent if they're evicted via S21 before the end of a rental period.

Correct.

That is the case if the landlord serves a 21 and then ends the tenancy.

However it does not alter the requirement for the tenant's notice to align with the (6 monthly) periods......