Renewal of tenancy and new fees laws

tandl165

Apologies if been covered before, but can't seem to find an answer to this. Was on a 12 month AST that ran out in Feb, and has now moved over to a rolling contract. Partner was on AST as a permitted tenant, and had previously inquired about changing to a joint, but was told would be £150 to add her on. With new fees laws there doesn't seem to be much info, but my interpretation is that if add her on and sign a new joint AST then is a new contract, and therefore not liable for any fees?

Have seen mention of a years implementation period where if tenancy began before June thren fees outlined in original contract still apply till end of may 2020. Not sure how accurate this is though...

Any clarity appreciated thanks.

System

If you add your partner on to the tenancy before 1st June the agent can charge you the £150 if you wait till after that charge is capped at £50.


here is the guidance
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/791280/TFA_Guidance_for_Tenants.pdf

tandl165

Thanks for the info Simon. Looking through that though, the bit that I'm finding a bit confusing is:

"However, if the tenancy was entered into before 1 June 2019 and you agreed in your contract to pay fees to renew your tenancy then a landlord or agent can charge these fees for a new fixed-term agreement or statutory periodic agreement up until 31 May 2020"

So it seems as though 3 outcomes:

- Pay £150 as outlined in original AST (If meet criteria for interim arrangement to renew tenancy)
- Pay £50 (new rules) to change tenancy
- Pay £0 if take the view that if is new agreement with different terms (joint tenancy) then falls under new June laws

i guess you could argue either any of those really, so might have to sound out the agents and see their view, but suspect if they can try and charge more they will...

G_M

If the name(s) of the tenant(s) are different, it is a new tenancy.


Interested to know why you (both) want to add a name though - what is wrong with the current arrangement?

System

tandl165 wrote: »

Thanks for the info Simon. Looking through that though, the bit that I'm finding a bit confusing is:

"However, if the tenancy was entered into before 1 June 2019 and you agreed in your contract to pay fees to renew your tenancy then a landlord or agent can charge these fees for a new fixed-term agreement or statutory periodic agreement up until 31 May 2020"

So it seems as though 3 outcomes:

- Pay £150 as outlined in original AST (If meet criteria for interim arrangement to renew tenancy)
- Pay £50 (new rules) to change tenancy
- Pay £0 if take the view that if is new agreement with different terms (joint tenancy) then falls under new June laws

i guess you could argue either any of those really, so might have to sound out the agents and see their view, but suspect if they can try and charge more they will...

By changing your girlfriend from permitted occupier to a tenant you would be making a fundamental change to the contract so a new one will need to be drawn up hence waiting till 1st June and new fee structure should apply