Querying Letting Agent Change of Tenant Fees

greatcrested

ah OK - you're looking at the Shelter Legal website which is designed for specialists/lawyers rather than the standard public website.

https://england.shelter.org.uk/legal/housing_options/paying_for_accommodation/tenant_fees/tenant_fees_permitted_payments#4

Novation is clealy a legal concept (as they explain, surrender and creation of new contract), but one which I'd suggest is unusual - the fact that in around 15 years on this forum I've not come across an example should tell you something!

It appears to be an alternative legal mechanism to an assignment, accomplishing the same basic objective (changing the name(s) of tenant(s) on the contract).

However, whatever it's precise definition, Shelter makes it clear: whether your LL/agent agrees an assignment, or a novation, provided it is done at the request of the tenant(s), the fee can be charged.

"A payment in respect of the ‘variation, assignment or novation of a tenancy’ at the tenant/licensee’s request is a permitted payment."

This is in line with the actual legal source: see the Tenant Fees Act itself here, or read the government guidance here.