Ending Tenancy Early - Charges

brothermalzone

Hi There,

My wife and I are looking to purchase a property which should be completing in the next 8-10 weeks.

We're currently renting and on a 6 month fixed which ends in December.

Apparently we are unable to give our 2 months notice until December meaning the rent will need to be paid until February...making it 8 months? Is this correct?

I know the landlord and he has confirmed that if the agents are able to find Tenants to replace us we can leave whenever is convenient.

The agents have stated that we need to pay an early termination fee of £414 BUT also we'll need to pay a service charge which by my understanding is a 9% fee of what the landlord pays to them.

The service charge works out to be around £90 a month and will need to be paid until the end of February. I don't understand this fee as surely the landlord and the agents aren't losing out if we're being replaced by new tenants?

Many Thanks

Barny1979

brothermalzone wrote: »

We're currently renting and on a 6 month fixed which ends in December.

Apparently we are unable to give our 2 months notice until December meaning the rent will need to be paid until February...making it 8 months? Is this correct?

That definitely doesn't sound right, I had a 6 month tenancy from September to March this year as was buying another property and I just gave relevant notice to leave at the start of March

Comms69

brothermalzone wrote: »

Hi There,

My wife and I are looking to purchase a property which should be completing in the next 8-10 weeks.

We're currently renting and on a 6 month fixed which ends in December.

Apparently we are unable to give our 2 months notice until December meaning the rent will need to be paid until February...making it 8 months? Is this correct?

I know the landlord and he has confirmed that if the agents are able to find Tenants to replace us we can leave whenever is convenient.

The agents have stated that we need to pay an early termination fee of £414 BUT also we'll need to pay a service charge which by my understanding is a 9% fee of what the landlord pays to them.

The service charge works out to be around £90 a month and will need to be paid until the end of February. I don't understand this fee as surely the landlord and the agents aren't losing out if we're being replaced by new tenants?

Many Thanks

No notice is required to leave at the end of a fixed term tenancy

G_M

That seems unlikely to be correct. When a fixed term ends, the tenancy ends, whether notice is given or not. That is what 'fixed' term means!
However:

brothermalzone wrote: »

We're currently renting and on a 6 month fixed which ends in December.
Please quote (exactly) the wording in the tenancy agreement:
* start date
* end date (or 'Term' eg '6 months')
* any relevant clause

Apparently we are unable to give our 2 months notice until December meaning the rent will need to be paid until February...making it 8 months? Is this correct?
What do you mean by 'apparently'?
The landlord told you? The agent told you?
The tenancy agreement says so?
Or what?
Please give full details.

I know the landlord and he has confirmed that if the agents are able to find Tenants to replace us we can leave whenever is convenient.
That is always the case.
Any tenancy can be ended at any time by mutual agreement between the landord and tenant (called 'Early Surender').
However the LL may demand conditions for his agreement eg that he (or his agent) first finds a replacement).

The agents have stated that we need to pay an early termination fee of £414
Please answer the Qs above

BUT also we'll need to pay a service charge which by my understanding is a 9% fee of what the landlord pays to them.
Both the fee, and the service charge, may be part of the LL's condition for agreeing an Early Surrender (see mutual agreement above)

The service charge works out to be around £90 a month and will need to be paid until the end of February. I don't understand this fee as surely the landlord and the agents aren't losing out if we're being replaced by new tenants?

Many Thanks

Please answer the Qs, and also read:

* 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?

brothermalzone

Sorry for the late reply. The Landlord has both copies of the Tenancy agreement as they were never returned. Im waiting for him to send.

He now maybe wanting to sell but has agreed to present a reasonable offer to us.

Re: agent fees I'll send over the wording as soon as the Tenancy is back but here is the wording from their website...Thanks

Early termination ( tenants request )
Should you wish to leave your contract early, you will be liable to the Landlords costs in reletting and granting the termination, as well as all rent due under the tenancy until the start date of the replacement tenancy. These costs will be no more than the maximum amount of rent outstanding on the tenancy.

Marketing fee £144.00( inc vat )
Start of tenancy fee’s £270.00 ( inc vat )
Service charge outstanding due to the agent by the landlord for the remainder of the tenancy agreement term.

Fee example – 5 months remaining on contract. Rent @ £800 pcm. Service charge @14.4% ( inc vat ). £800pcm x 14.4% = £115.20 x 5 months = £576.00'

macman

You are 'looking to purchase'? Does that mean you have had an offer accepted, just looking...? If so there is no certainty that you will complete within 8-10 weeks.
Your LL is clueless. As above, no notice is required at the end of an AST, though it would be wise to tell your LL your intentions. Once the AST ends, do nothing and it becomes a periodic tenancy. There is no need to renew it to remain. Then, once you know your move date, give notice.

hazyjo

macman wrote: »

Then, once you know your move date, give notice.

Would only give notice once actually exchanged. It can still all fall apart before that.


The process is more likely to take around 12 weeks so if you've not found anywhere yet, I'd not be worrying. Especially as local EAs and solicitors usually shut down between Christmas and New Year.

brothermalzone

We have found somewhere and we're FTB so everything is in place and due to exchange in November sometime. My main concern are the service charge fees from the agents which needs to be paid until Feb. I'll check my tenancy once received and post.

caprikid1

brothermalzone wrote: »

We have found somewhere and we're FTB so everything is in place and due to exchange in November sometime. My main concern are the service charge fees from the agents which needs to be paid until Feb. I'll check my tenancy once received and post.

Just pay the rent and hand back the keys before the tenancy is due to end.

G_M

brothermalzone wrote: »

We have found somewhere and we're FTB so everything is in place and due to exchange in November sometime. My main concern are the service charge fees from the agents which needs to be paid until Feb. I'll check my tenancy once received and post.

See my post above.


If your fixed term ends in December, and you move out on/before that date, then your tenancy and all liability ends.


It's a FIXED term contract. When it ends, it ends.


(ps- it amazes me that people sign contracts and don't keep copies!)

brothermalzone

Thanks. We did have a copy but they were both sent to LL for signature and not returned.

Looking at our previous tenancy is does mention that 1 month notice needs to be given after the fixed term ends making it 7 months. This year I think it's changed to 2 months after fixed terms. Rare I know but its in the Tenancy so not sure if there is a way around it?