Renting while buying. Fixed term ending. advice needed please!

Triumph7

Hello,
I'm new here and need some advice on moving or fixing while looking to buy a house and buying time but not too much time! This might take a while to explain so apologise if this is long.

Ive been living in the same flat for nearly 5 years and usually renew for a years fixed term each time. We are looking to buy our first house and our agreement in principal expires mid October. So far we have viewed two places since end of July and put a low offer on the second but were outbid. There is not a lot coming up for sale at the moment.
The fixed term on our assured shorthold tennancy is due to expire at the end of this September.

In June we recieved a letter from the letting agency (We don't have the landlords contact details) asking us about our plans. It said if we do not wish to renew after the fixed term they will take instructions from the landlord about remaketing the property to new tenants. Our mortgage broker advised to ignore the letter for as long as possible so we did.
Now I have a reminder email asking for our urgent response.

What should we do? The agency don't know our plans and I feel it's unwise to tell them.

*If we ask for periodic they could possibly try to evict us in two months and remarket.

*If we ask to renew (with fee) then the minimum term will likely be 6 months and we don't know if the landlord will agree to this as it's normally 12. We feel 6 months would be too long if we found somewhere to buy and we can't afford a few months overlap rent and mortgage. It would be good to be ready to move too as this makes us more attractive buyers.

If we moved to rent somewhere short term temporarily before applying for a mortgage could this affect our credit history or our mortgage application being accepted?

It would be good to speak with the landlord directly, by law they only need to provide his address within 21 days.
Any advice on how to proceed would be greatly appreciated

Many thanks.

Alter_ego

Firstly the agency must give you the landlord's contact address. The 21 days was at the beginning of your tenancy.
Secondly you will automatically go on to monthly periodic if you don't renew, it will take much more than 2 months to evict you with a court order (The only way they can do it)

G_M

Alter_ego wrote: »

Firstly the agency must give you the landlord's contact address. The 21 days was at the beginning of your tenancy.
Secondly you will automatically go on to monthly periodic if you don't renew, it will take much more than 2 months to evict you with a court order (The only way they can do it)

Firstly - no! The 21 days starts from the date the agency receives a written request from the tenant for the LL's address.

See section 1 of Landlord & Tenant Act 1985 .

Secondly - yes. A periodic tenancy is automatic. Whether the LL will want to evict a reliably paying tenant is moot. Though the agent might if they have appropriate authority to do so on the LL's behalf. 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?

SuboJvR

If they want to try and give you notice now, the earliest that can expire will be the end of November. This is because if they wanted you to be out at the end of your fixed term they needed to serve the proper notice with two clear rental periods' notice, so they should have served this in July.

Now, they will need to serve two clear periods of the new periodic tenancy as you will enter into a periodic tenancy at the end of September.

At the end of this, you can still remain, and as long as you are paying rent they will need to pursue eviction through the courts. Which would be rather silly, costly and hassle. And ultimately they likely won't bother if it's purely because they are missing on renewal fees.

It's difficult to negotiate this one. I've just been through it.

But I had a good relationship with our landlord, so I spoke openly and honestly with him about it and it became obvious he didn't understand tenancy law so much, nor our rights. That is - his property is, for now, our home. And he can't determine when we choose to leave it so long as we are paying him money. His main concern is not having a void in tenancy - same with your landlord.

Your agency's main concern is getting a renewal fee out of you. They will push and they will try to scaremonger. But hold firm.

Just say you wish to allow the tenancy to go onto a periodic tenancy at this time, having been such good tenants for so many years.

They and the landlord will probably work out that this means you can't guarantee you want to be there for a whole extra year; but that's their tough luck. As I said, they can't decide when you stop making that property your home. They can try, but it will take them months and cost them money. But they will put the scare tactics on.

Expect them to say that the landlord wants some commitment. Say you can't offer it at this time, and wish to have a periodic tenancy again. As said earlier the only notice they can serve now to be valid will expire end of November only. And you can stay past this until such a day as bailiffs come to evict you some months later by which time (I really doubt they'd bother with this if you are paying rent!) you should be in your own home.

Triumph7

Thanks for your input. If we have to move out before we find somewhere to buy.... Does anyone know exactly how the moving address would affect our mortgage application?

I'm trying to weigh up the pros and cons.
I think we are probably going to ask to go periodic first and if the landlord objects hopefully we can get a break clause before 6 months.
I think we are in a pretty good position now credit rating wise and don't really want to spoil that.

SuboJvR

the "landlord" will not agree off the bat. The agent may not even ask. They are just chasing their renewal fee. If you aren't going to play hard ball, at least ask for a three month break clause, the agent will probably go for it as you are re signing and they get their fee.

Six month break will take you to march, you probably will also have a two month (read: two rental periods) notice period in a new contract whereas with periodic it is one. Thus you may end up paying a lot of overlap when you buy.

Marvel1

Triumph7 wrote: »

I'm trying to weigh up the pros and cons.
I think we are probably going to ask to go periodic first and if the landlord objects hopefully we can get a break clause before 6 months.

Don't ask, it's automatic, the letting agent will say no as there is no fee for them.

SuboJvR

My agent even tried to get me to sign a two month extension. This was UTTERLY pointless as no matter what happened at that point, we could stay until that date even if they issued a section 21 notice, as this was within the last two months of our fixed term. They purely wanted the fee.

Weirdly it wasn't long after I politely declined the pointless extension that all parties agreed the periodic tenancy.

Plenty of landlords (especially those who allow agents to fully manage) are not aware quite how many rights rent paying tenants have when it comes to living in their property. This is because for the tenant it is a home. I've had four private landlords and all four, whilst being very amenable, haven't had a clue about this stuff.

G_M

Neither the LL not the agent has to 'agree' a periodic tenancy. If you read the link (post 3 above) you'll see that it happens automatically.

By raising the issue now, there is the potential for disagreement, resulting in a S21 Notice.

And SuboJvR is wrong above.

Your fixed term expires at the end of Sept, so you are and always were secure till then. But a S21 Notice served, say, on Monday (14 Aug) would expire 2 calander months later (13th Oct).

SuboJvR's reference to a requirement for 'two clear rental periods' notice is just plain wrong (whether served during the fixed term, or during a subsequent periodic tenancy).

So the best tactic is to delay - not to force the issue. Don't respond. If they ring:

* "Sorry it's a really bad time right now. Can you call back?" and hang up
* "I'll be discussing it with my partner/parents/sister over the weekend OK?"
* "I can't seem to find the contract - can you re-send it?"

In no time at all your fixed term will be ended, you'll have a periodic tenancy without having agreed anything, and your purchase will be on-track.

SuboJvR

Sorry, that was the advice given to me on this very forum...

Pixie5740

SuboJvR wrote: »

Sorry, that was the advice given to me on this very forum...

Really?

https://forums.moneysavingexpert.com/discussion/5657104