Landlord offering compensation to end tenancy agreement early

sazzlefrazzle99

Hello!

I've lurked here but never posted before - but now my time has come!
Three months ago I moved into a 2 bed 3 bath flat in central London, our rent is about £2k monthly.

Our landlord owns the entire building of four flats - and today he emailed to say he plans to sell the entire block as separate units so will not extend any contracts. He said he would be willing to offer us compensation if we are willing to end our tenancy early, we have had a look around and there are properties we could move to so we are potentially keen. Money is a good motivator!

I just wondered if anyone had any frame of reference as to how much compensation we should expect/ask for? Our contract is 3 years long with a 14 month break clause and flats in nearby buildings are selling for about £1m.

Keen to hear your thoughts!

kay0601

Is it a mutual break clause? I'd be tempted to say half the rent up to then.

G_M

kay0601 wrote: »

Is it a mutual break clause? I'd be tempted to say half the rent up to then.

If it's not mutual, it's unenforcible.

G_M

So you have a guaranteed fixed term for another 11 months (I assume the 14 month Break Clause allows the LL to end the tenancy then, not serve notice to end it later (eg at 16 months).


It all depends how urgently the the LL wants you out. If he wants to put the building on the market immediately, empty, then you have a very strong bargaining position.


If he's happy to put it on the market wit you still there, with a view to selling it empty once a buyer is found - this could take him 3-6 months (marketing + conveyancing) so he may be less concerned.


I would try to find out which.......

sazzlefrazzle99

I left it open and asked what he wanted - he has offered us 3 months rent (~£6000) to move out within 2 months, so by the end of November.

We're already doing viewings of other flats, so thinking about moving out by end of October which would be a month early - also allowing access for decorators, surveyors, agents etc in return for last month rent free so about £8000 in total. Does that seem fair?

agrinnall

Sounds like a no-brainer to me to accept a deal, it's just a question of agreeing the money. I'd have been happy with the original £6K, but if you think you can do him an extra favour and get another £2K out of it then by all means suggest that as long as you're confident he won't withdraw the original offer.

stator

Have you calculated the cost of you moving?
How much did it cost last time?
How much rent overlap would there be?


I'd be generally sceptical of the whole thing, make sure you get everything agree in writing

missile

sazzlefrazzle99 wrote: »

I left it open and asked what he wanted - he has offered us 3 months rent (~£6000) to move out within 2 months, so by the end of November.

We're already doing viewings of other flats, so thinking about moving out by end of October which would be a month early - also allowing access for decorators, surveyors, agents etc in return for last month rent free so about £8000 in total. Does that seem fair?

I would suggest the LL is being open and honest with you and I think his offer is fair. It seems you were thinking of moving on, so why be greedy? :A

Craig1981

£6k is more than generous offer. pays deposit, moving costs and a months rent on a new place...

csgohan4

make sure you get it writing, otherwise it will be your word against the LL in a small claims court