New (Renewal?) Tenancy Fee Post 1st June

joewelsh99

Hi All, looking for some advice. My tenancy runs out on 17th June (Obviously will be signing after 1st June for the additional protections), However, I'm not sure if legally we have to pay a fee for the new (renewal?) tenancy.

In my current contract, the only reference to a renewal fee is;

"The landlords and tenants will be charged an administration fee of £XXX + VAT, whenever a new lease agreement is entered into. Payment is due prior to signing the new lease agreement"

Also we have received a letter (we asked to continue on a periodic) that the landlord wants a new fixed term (and we have been served a S21) and that "the landlord has proposed we enter into a new Assured Shorthold Lease Agreement"

I see the government legislation guidance states:

"If you entered into a tenancy before 1 June 2019, a landlord or agent will still be able to charge fees up until 31 May 2020, but only where these are required under an existing tenancy agreement. This might include, for example, fees to renew a fixed-term agreement where you had already agreed to pay these. Nonetheless, businesses such as letting agents are prohibited from setting unfair terms or fees under existing consumer protection legislation. If you consider the level of fees being charged to be unfair, you should discuss this with your landlord or agent."

However as the tenancy agreement specifically states a 'new' agreement (which was backed up by the letter I received) and not a renewal or an extension how do I stand on paying the fee? I can afford it.. but fed up of paying agents fees over the years and feels wrong to keep paying them after the ban!

TIA

James_d_2

I’m sure if it’s says a new agreement then that what it is a new one and carnt be charged

Either way I would refuse to pay it and say if I have to pay it I just move and ias I see it they would prob right it off as if u been a good Tennant and paying on time would they risk loosing tou for the sake of a few hundred and risk having to get the next ones evicted for non payment and loosing thousands

G_M

Unless there are significant changes to the terms of the agreement, I believe this would constitute a renewal of an existing fixed term, and the renewal fee could be charged (this year).


Why not just ignore this though and allow the AST togo periodic - the LL and/or agnts consent for this is not required.


Assuming you are a reliable tenant I find it hard to believe the LL will follow up the S21. The costs of a void between tenants, the inevitable costs of re-marketing, not to mention the costs the agent will seek to transfer from applicatants post June 1st to the LL, means it makes no financial sense toactually evict.


* 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?

chunkytfg

Have you actually been served a section 21 notice or have you been sent a letter stating the landlord would like you to sign up again with a cleverly worded mention of a s21 notice to make you think you have been given one?

Also have you actually asked the LL what they are happy with? You might find the LL doesn't know what the EA is up to

diggingdude

Sounds like a very threatening agent/LL. Here's a section 21. now sign the contract or we will break your legs. If it does go to court remember to play the unfair contract term card

anselld

G_M wrote: »

Unless there are significant changes to the terms of the agreement, I believe this would constitute a renewal of an existing fixed term, and the renewal fee could be charged (this year).

The RLA guide states that the ban applies to renewals after June this year ...

https://www.rla.org.uk/landlord/guides/tenant-fees-ban-guidance.shtml

da_rule

anselld wrote: »

The RLA guide states that the ban applies to renewals after June this year ...

https://www.rla.org.uk/landlord/guides/tenant-fees-ban-guidance.shtml

Yes, except where the fees are built into an existing tenancy which was signed before the 1 June 2019. Where an existing tenancy contains fees these can still be charged (including renewal fees etc) until the end of May next year.