Ending Tenancy Early - What if the Landlord wants to increase the rent?

newsgroup_monkey

We are about to put an offer in on a property, but to work out our costs, we need to look at everything, including ending the tenancy early.


The rules of our contract say that we can exit early PROVIDING we pay "A charge not exceeding the financial loss experienced by the landlord"


Happy with that.


BUT, right now we're paying under the market value. A similar property would be renting for £1100-1200 a month. We're paying £980 (we've been here a few years and the LL likes us - there's just the 2 of us in a 3 bed Semi and we've never ever been late paying, look after the house and when we have inspections, the letting agency always question why they have to bother because we've always looked after it).



I've a feeling the Landlord is going to be greedy and even ask the top end of the market (say £1250). In which case, it might sit around for a few months, if not until the end of our contract in 8 months. Whereas if they were to put it under £1100, it would be snapped up.


Anyone know what the legal situation is? It's not spelt out in our contract about re-letting at a different value.


Obviously, if they relet it straight away at £1100, we could argue they're not out of pocket at all (even with re-letting fees).


And please don't grumble about us leaving early - we've experienced a serious amount of loss this year which has changed our situation - positively financially, but logistically very difficult. We made it clear to the letting agency that our situation was likely to change and they pointed out that they're very amenable to people leaving early as long as they're not out of pocket.

[Deleted User]

I am sorry but we don't possess crystal balls. We can't possibly estimate how long the flat will be waiting to be relet, nor at what rent. You live in the area (so know how popular accommodation like yours is) and you know the LL - we don't. Its daft to ask us lol. You will have to budget for a maximum and minimum amount and allow for both. If you have 8 months left, it could take 6 months for the sale process to complete, only leaving a couple of months on the tenancy. Again, we can't predict that.

Only you can ask the LA what their reletting fees are.

You are going to have to guesstimate, save hard while going through the process to cover all bets. There's so much to get stressed about with a house purchase, I think you are trying to tie this down to an amount, when you can't really. Save the energy.

Disjoint

What's your contract?
You are in the UK - have you been signing a new AST every year? Is it for a year, is it for two years? Or have you just kept the initial contract and never renewed?
Basically what tenancy are you on? If you are on a rolling tenancy it's 2 months notice. If it's on an AST it's until break or end of your contract.
If they let it before and release you of your contract it's a service they are doing to you and they are not obliged at all to do it.

I have allowed tenants to sublet in the past to get out of tenancies - I never said no to their suggestions. If you are not going to find a tenant to sublet your space and get it approved by the agency you are at their mercy and have no ground to stand on - even if they list it at GBP 60000 a month

G_M

newsgroup_monkey wrote: »

We are about to put an offer in on a property, but to work out our costs, we need to look at everything, including ending the tenancy early.

The rules of our contract say that we can exit early PROVIDING we pay "A charge not exceeding the financial loss experienced by the landlord"
The contract really does not need to say that - the LL can ask for any compensation or conditions he want before agreeing to a request for 'Early Surrender'.

If you don't like his costs/conditions, you have the option of waiting for your contract to end.

Happy with that.
OK

BUT, right now we're paying under the market value. A similar property would be renting for £1100-1200 a month. We're paying £980 (we've been here a few years and the LL likes us - there's just the 2 of us in a 3 bed Semi and we've never ever been late paying, look after the house and when we have inspections, the letting agency always question why they have to bother because we've always looked after it).
sounds perfect.

I've a feeling the Landlord is going to be greedy and even ask the top end of the market (say £1250).
When re-letting, he can of course ask for a market rent. Or indeed more!

In which case, it might sit around for a few months, if not until the end of our contract in 8 months. Whereas if they were to put it under £1100, it would be snapped up.
Very true.

Anyone know what the legal situation is? It's not spelt out in our contract about re-letting at a different value.
As above.

Obviously, if they relet it straight away at £1100, we could argue they're not out of pocket at all (even with re-letting fees).
It's a good argument to try.

And please don't grumble about us leaving early - we've experienced a serious amount of loss this year which has changed our situation - positively financially, but logistically very difficult. We made it clear to the letting agency that our situation was likely to change and they pointed out that they're very amenable to people leaving early as long as they're not out of pocket.

You could of course have moved to a periodic tenancy instead of a fixed term one. But that's water under the bridge.


Given that you have a good relationship with the LL, the best adice is to discuss your plans with him as early as possible. This gives him a heads up in advance, allowing more time to plan, and also maintains your relationship by being open, meanng he may be more flexible.

newsgroup_monkey

Thanks G_M. Yes, we do have a good relationship with the agents, particularly. And absolutely, if our offer is accepted, they'll be the next call.


I guess my worry is simply that by asking top of the market rent, the house will sit empty, whereas if they were to offer it somewhere near our current rent, we'd be being chased out!

Lokolo

You haven't even put an offer on a property, there's literally no point thinking about surrendering the tenancy early when you don't even have an offer accepted. There could be an incomplete chain, which will delay things even further.

Why don't you put this forward when making your offer? "We are currently in a tenancy for a further 8 months, so we wouldn't be looking to complete until at least 4 to minimise early surrender costs".

theartfullodger

You are at liberty to propose a lower rent than now. Entirely legal.

newsgroup_monkey

Yes, thanks Lokolo, valid point.
We have made a slightly lower offer based on estimated costs. We've initially budgeted £1500 to get out of this, although it could of course cost more.


There is no chain, up or down.

Lokolo

newsgroup_monkey wrote: »

Yes, thanks Lokolo, valid point.
We have made a slightly lower offer based on estimated costs. We've initially budgeted £1500 to get out of this, although it could of course cost more.


There is no chain, up or down.

Good luck!!!