Will we lose deposit if we can't find someone else for room?

ghekkomanic

We are a couple renting a double room in a house. I'm on a tenancy agreement which is co-signed by all 4 housemates. The 6 month break clause of the contract expired recently, and one housemate was allowed to move out providing she found a replacement, which she did.

We have given notice on the agreement we do the same, although the agent was very patronising about it, saying they didn't have to let us leave as the contract is for everyone - all leave or all stay.

We've had 20 viewings and are doing everything we can to get replacements, but no-one has taken the room. I'm worried that if we don't find someone by our next rent date we'll either be forced to stay (we're hoping to complete on our flat by then - thanks to everyone who gave me advice on that!) or lose our 6 week deposit. It is £990 so would be a big blow to lose it.

My question is does anyone know where we stand legally if we tell the agent we simply can't find anyone? Can they refuse to return our deposit even though yes, the contract is co-signed by all 4 housemates, but there is nothing contained within that states we have to find new housemates when we exercise our break clause?

silvercar

You are all on one tenancy, so all jointly and severally liable for the rent.

The agent is correct, in law you should all stay or all give notice and go. There is no obligation to allow some to stay and some to go.

Worst case is you move out and no tenant replaces you. The other co-signees remain so the notice is irrelevent, you tenants as a group have continued to reside and the tenancy is intact. You (4) are therefore jointly liable for the rent until such a time as the new tenant signs the tenancy or the tenancy ends and you all give the keys back.

So if you didn't pay the rent, the landlord could eventually serve notice (section 8 from memory) when the total rent owed is more than 2 months. All your deposits would be at risk to make up the rent.

The landlord has a duty to mitigate his losses, so he would have to make an effort to find replacement tenants, but I'm not sure if this applies here as the tenancy is still in force by the other flatmates living in the property. Even if it did apply the 4 of you would be jointly liable for the rent between you leaving and the new tenant moving in and the costs of advertising etc.

Not what you want to hear, but better you know.

If you can't find replacements, how about offering it cheaper and you making up the difference?

ghekkomanic

Thanks silvercar. Yes I've considered offering to pay half the first month's rent. That would cost me £362.50, but better than losing £990.

Our landlady actually lives next door, and we're on reasonably good terms with her so I considered approaching her and explaining the situation. But I imagine she would be unwilling to help if it costed her money, and I doubt she would have much influence over the agency.

My GF actually suggested we should have withheld this month's rent and simply moved out, but that would have left our remaining housemates open to eviction I'd have thought!

moneysavinmonkey

If you've got another 6 months to go on the agreement then technically the landlord can keep you deposit and make you pay for rest towards the 6 months you should be living there..... sorry, but by not making use of the break clause in time you have effectively agreed to another 6 month contract, and you can't get out of it now.

As the landlord clearly knows where they stand, your only option is to find another tenant pronto. sorry it's bad news. Will try and have a think if there is anything else you could do.

Gorgeous_George

Did you understand the contract when you signed it? How did the different parties meet each other? Are you really paying £725 per month for a room?

If the contract is structured as silvercar assumes (and as it appears), I think it may well be unfair and its legality somewhat dubious. Speak to CAB or a solicitor.

If the worst comes to the worst, give as much notice as possible and leave. Exceptionally, I'd support withholding rent to the value of your deposit.

GG

silvercar

why would a tenancy signed by a group of 4 individuals be unfair?

I'm wondering whether you are actually in a HMO, in which case your landlord should be subject to more strigent legislation (including landlord registration) and building requirements. Not contract related, but it could force her to agree to whatever you demand rather than have the council after her for failing to register and her properties inspected. A HMO is where there are 3 or more unrelated individuals, though the exact definition varies between councils.

Just throwing the idea into the ring.

SquatNow

If it's a shared tennancy then if you stopped paying then your housemates would pick up the tab.

You deposit couldn't be withheld AFAIK... it is a damages deposit, and can only be used to compensate the landlord if you wreck the place on the way out. Instead the other tennants would be forced to take you to court to recover the money.

Realistally your options are:
A) Keep paying the rent until another tennant takes over.
Use the break clause to force all tennant to move out.

sooz

It depends on what it says in your AST as to what your deposit can be used for. Some agreements say that a deposit can be used to cover any money owing, not just damages.

SquatNow

Irrelevant... if it's a joint rent the other tennants are jointly and equally liable. They would have to make up the shortfall.