Asked to pay renewal fee 7th June - is this legal

Gmj

I have been asked to pay a renewal fee of £180 for renting my flat because my contract was drafted before 1st June. However the agent has only confirmed today that I can extend my contract by 12 months from 23rd July. Is this legal?

need_an_answer

Fees can still be charged for the renewal of a contract if the original contract was taken out before 1st june 2019 providing that the relevant fees were displayed in that contract.

These fees will not be prohibited until may 31st 2020

Alternatively you can suggest a rolling contract that will automatically start when your existing contract ends.

onwards&upwards

Any reason you need or want another fixed term?

If not just let it go to a periodic and no need to pay the fee.

Gmj

Just for security - don’t want to have to start looking for somewhere with a couple of months notice. Moving out cleaning etc is a pain and then have to shell out for deposits on a new place before the old deposit is returned.

I’ve told them to speak to the landlord to waive the fee. They’re guaranteed 10.5K over 12 months (including a 3% rent increase this year) so to add on another 180 is unfair really??

need_an_answer

Its not the LL who would waive the fee.Its a fee charged by the agent for their service.

Admittedly its a high price and debatable whether the charge is fair,however if the term was in your previous contract to allow the charging of a renewal fee this year then that is what they are doing

From 31st may next year they will not be able to charge you the fee.


As previously explained you could do nothing and move to a periodic tenancy once this one expires but you seem reluctant to do that.

Gmj

I know it’s not the LL who charges it but between the LL and agent they will make enough money out of me not to charge an extra 180 for a ‘service’ that isn’t a service hence the banning of the fees. The agent would only insist on this fee out of pure greed.

need_an_answer

Your original question asked if the fee was legal...the answer is yes if you have a previous contract signed before 1st june this year where the fees are clearly defined.

They are therefore charging you for the preparation of a new contract and providing that service and security to you


You are unwilling to move to a rolling contract whereby no fees would be payable and have chosen not to accept that advice


One could say that the agent is "greedy" but on the other hand you could be viewed as at best "misinformed and reluctant" to not proceed with a rolling contract....is it fear of the unkown that makes you reluctant...or in effect is the agent seeing you as an easy target because of your reluctance to take on a much more flexible and somewhat cheaper contract.


A fool and his money I say....

Gmj

Emailing me a PDF document is not a £180 service.

They can be sensible and and waive the fee between them or a rolling contract it is

Gmj

If the contract was to roll, how do they implement a rent increase?

need_an_answer

When a fixed-term tenancy ends, it automatically becomes a rolling tenancy if the tenant remains in occupation and doesn't move out
Once it becomes a periodic tenancy, a landlord isn't usually able to increase the rent more than once a year without the tenant's consent.
Landlords must give tenants a minimum of one month's notice if they intend to increase rents.


GM has put together some very useful information on tenancies in the following thread....
https://forums.moneysavingexpert.com/discussion/5180214/tenancies-in-eng-wales-guides-for-landlords-and-tenants

I expect you will find the information useful going forward

MEM62

Gmj wrote: »

I’ve told them to speak to the landlord to waive the fee.

Nothing to do with the landlord. It doesn't go into his pocket.