Charging a change of tenancy fee when I move out?

fujifilm

Hello,
I'm looking for some advice about fees that my estate agents are trying to charge me for a rented property in England, please.

My housemate and I have signed an AST for 12 months from mid June last year (i.e. the 12 month period comes to an end approximately 1 month from now). I've done a bit of research and I've found that technically, the contract would end if we moved out on the final day of the tenancy regardless of whether or not we informed the estate agent of our intentions. Is this correct? And even though the AST Agreement states that the tenants must "give the Landlord two calendar month's notice in writing of the date on which the Premises will be vacated at the termination of this tenancy", this isn't actually enforceable?.  Also, given that it is a joint contract, if I were to move out but she stayed in the flat, would the contract automatically continue on a monthly rolling basis with me still technically being liable for the rent payment? 

The reason I ask all the above is because my housemate and I have agreed that I will move out, she will stay put, and person K will move in in my place. I made the assumption that my contract would be terminated at the end of the 12 month period and my housemate and person K would sign a new one. However, the estate agents are trying to process a 'change of sharer' request, which requires me to pay £50 on vacating the property. I have seen the email that my housemate sent to the estate agent in which she explained that I will be vacating the property on the contract end date and person K will be moving in. She also requested that the contract moves to a monthly rolling basis instead of fixed term but the estate agent has said it would need to be a minimum of 6 months fixed term. 

With the above in mind, my understanding is that mine & my housemate's contract will end in approx 1 month's time and she will sign a new one with person K (since the estate agent is insisting on another 6 months) - is this the case? I don't want to pay the £50 fee but equally I don't want the contract to roll onto a monthly basis because my housemate stays put, making me jointly liable for rent. Equally, I don't want to do anything that is going to put her at risk of losing the flat. 

Any advice would be gratefully received 

greatcrested

fujifilm said:

Hello,
I'm looking for some advice about fees that my estate agents are trying to charge me for a rented property in England, please.

My housemate and I have signed an AST for 12 months from mid June last year (i.e. the 12 month period comes to an end approximately 1 month from now). I've done a bit of research and I've found that technically,legally the contract would end if we moved out on the final day of the tenancy regardless of whether or not we informed the estate agent of our intentions. Is this correct?

Correct

And even though the AST Agreement states that the tenants must "give the Landlord two calendar month's notice in writing of the date on which the Premises will be vacated at the termination of this tenancy", this isn't actually enforceable?.

This does not affect the tenancy ending, as above. But it does place a contractual obligation on you. If you fail to comply, the LL could claim compensation from you for any losses he incurs as a direct result eg if he can PROVE (difficult) he would have re-let the property earlier had he known.

 Also, given that it is a joint contract, if I were to move out but she stayed in the flat, would the contract automatically continue on a monthly rolling basis with me still technically being liable for the rent payment? 
Yes
The reason I ask all the above is because my housemate and I have agreed that I will move out, she will stay put, and person K will move in in my place. I made the assumption that my contract would be terminated at the end of the 12 month period and my housemate and person K would sign a new one.

If that is done, then your tenancy will end, just as if you both moved out and 5 minutes later your housemate and K moved in.

However, the estate agents are trying to process a 'change of sharer' request, which requires me to pay £50 on vacating the property.

That is anoher way of doing it. To do it properly there should be a Deed of Assignment. The current tenancy would continue, on a periodic basis, but with your name being removed and K taking your place. The Deed should make clear that K has paid you your share of the deposit, and K then is entitled to the deposit you originally paid.

The LL/agent can charge for the deed.

I have seen the email that my housemate sent to the estate agent in which she explained that I will be vacating the property on the contract end date and person K will be moving in. She also requested that the contract moves to a monthly rolling basis instead of fixed term but the estate agent has said it would need to be a minimum of 6 months fixed term.

The agent cannot enforce a 6 month term. If housemate does not leave, it will become periodic (rolling monthly) automatically. But with you still as tenant, since Executing the Deed described above is dependant on the LL/agent agreeing.
With the above in mind, my understanding is that mine & my housemate's contract will end in approx 1 month's time and she will sign a new one with person K (since the estate agent is insisting on another 6 months) - is this the case?

That seems the cleanest easiest way for you. Make sure the current tenancy is properly ended and the full deposit returned (less any fair deductions for damage). A new deposit will/should be paid for the replacement tenancy. The existing deposit cannot be passed on to the new tenancy.

I don't want to pay the £50 fee but equally I don't want the contract to roll onto a monthly basis because my housemate stays put, making me jointly liable for rent. Equally, I don't want to do anything that is going to put her at risk of losing the flat. 

Any advice would be gratefully received 

Providing the LL/agent, your housemate, and K, are all happy to set up a new 6 month tenancy there's no problem.

Or indeed a brand new Contractual Periodic Tenancy(rolling monthly) from the start. Up to the parties involved.

Your concern is to ensure that either

* housemate moves out with you or

* a new replacement tenancy IS created and if so

* your deposit is returned

Example:

https://www.landlordzone.co.uk/pdf/Licence-Deed-of-Assignment.pdf

fujifilm

Thank you very much @greatcrested for your helpful response. My confusion came from the estate agent saying in one sentence that housemate & K must have a minimum 6mo term but in the next sentence was implying that it was simply a change of name on the existing contract that was taking place - and thought those two things were incompatible, which seems to be what you are saying. 

My preference is that the contract ends and a new one is drawn up because I resent paying the estate agents money for old rope, however HM & K are keen that they have a rolling contract instead of a fixed term, so from that perspective they'd simply want the current one to continue with my name gone and K's added. They've offered to pay my £50 but its the principle that I object to more than anything else. 

[Deleted User]

It's not an end of tenancy fee it's a tenancy assignment fee which is still allowed.  Your preference is to have a new contract drawn up which with tie HM and K to another fixed term.  HM and K would prefer to have the flexibility of a periodic tenancy and are willing to pay the £50 fee.  Are you really going to throw a spanner in the works?  The alternative is that there is no assignment and you and HM both remain jointly and severally liable for the rent for a property you will no longer reside in.

HampshireH

Lover_of_Lycra said:

It's not an end of tenancy fee it's a tenancy assignment fee which is still allowed.  Your preference is to have a new contract drawn up which with tie HM and K to another fixed term.  HM and K would prefer to have the flexibility of a periodic tenancy and are willing to pay the £50 fee.  Are you really going to throw a spanner in the works?  The alternative is that there is no assignment and you and HM both remain jointly and severally liable for the rent for a property you will no longer reside in.

It would be better for all parties to end this tenancy naturally and K and new tenant start their own.

It ensures OP gets deposit back legitimately and it means the new tenant is assured of not having to be rrsponsible for any damage caused in this tenancy period.

I read the OP doesnt want to assign the tenancy they want this one ended and a new on started. Which is what the estate agent is also angling for.

So many examples on here of mismanaged assignments and problems incurred by them with deposits and late bills etc.

dimbo61

The LA/LL should carry out credit checks on the new tenant. Cost ££
They should register the deposit. Cost ££
Any new tenancy should be for a minimum of 6 months as 2 " New tenants " have now taken the property.
Check out inspection and any deposit disputes sorted. Cost £££
Refund of Your deposit to You 
Final meter readings and bills paid for utilities used.
Council tax liability sorted for YOU and any debt paid.
As a Landlord I would want a new contract with the new tenants for at least 6 months.
You as the existing tenant should make sure your not liable for any New bills and meters are read and passed onto the utility provides. Gas/Electric/Water/Broadband/Insurance and Council Tax

saajan_12

fujifilm said:

Hello,
I'm looking for some advice about fees that my estate agents are trying to charge me for a rented property in England, please.

My housemate and I have signed an AST for 12 months from mid June last year (i.e. the 12 month period comes to an end approximately 1 month from now). I've done a bit of research and I've found that technically, the contract would end if we moved out on the final day of the tenancy regardless of whether or not we informed the estate agent of our intentions. Is this correct? And even though the AST Agreement states that the tenants must "give the Landlord two calendar month's notice in writing of the date on which the Premises will be vacated at the termination of this tenancy", this isn't actually enforceable?.  -Yes and No. The TENANCY would come to an end if everyone vacates by the end of the fixed term. However you could be contractually liable for the LL's losses due to your failure to serve notice per the contract. The civil part is still enforceable, eg if there's an extended void. Also, given that it is a joint contract, if I were to move out but she stayed in the flat, would the contract automatically continue on a monthly rolling basis with me still technically being liable for the rent payment? - yes, if anyone is still in occupation, the joint tenancy continues with all joint tenants liable. 

The reason I ask all the above is because my housemate and I have agreed that I will move out, she will stay put, and person K will move in in my place. - you can't decide that unless you want to remain liable for rent and housemate takes in K as a lodger. Otherwise, you're wanting to change the contract with the LL, which they would have to agree to (and likely check references / charge for the pleasure). I made the assumption that my contract would be terminated at the end of the 12 month period and my housemate and person K would sign a new one. - they could, only if the LL & new tenants agreed. However, the estate agents are trying to process a 'change of sharer' request, which requires me to pay £50 on vacating the property. -that's an allowed fee for a reassignment. I have seen the email that my housemate sent to the estate agent in which she explained that I will be vacating the property on the contract end date and person K will be moving in. She also requested that the contract moves to a monthly rolling basis instead of fixed term but the estate agent has said it would need to be a minimum of 6 months fixed term. -The right to a periodic tenancy is if you + housemate remain the tenants. If housemate + K want to sign a new contract, or you want to assign the current one to housemate + K, then that would be subject to agreement by the LL, who can make a 6 month fixed term a condition of agreeing.  

With the above in mind, my understanding is that mine & my housemate's contract will end in approx 1 month's time and she will sign a new one with person K (since the estate agent is insisting on another 6 months) - is this the case? I don't want to pay the £50 fee but equally I don't want the contract to roll onto a monthly basis because my housemate stays put, making me jointly liable for rent. Equally, I don't want to do anything that is going to put her at risk of losing the flat. 

Any advice would be gratefully received 

There are a few options, perhaps not exactly what you want, but you all need to decide which is the priority. 
1) Everyone moves out by mid June, deposit returned less deductions etc. Housemate + K sign a new contract starting the day after with new deposit. LL agrees subject to 6mth contract. No fees. 
2) Tenancy assigned so K replaces you. You sort out deposit between you and all damages from the start will be housemate+K's problem when they move out. LL agrees subject to 6mth contract. £50 fee. 
3) You and housemate remain as tenants, and take in K as a lodger. After mid June, you refuse to sign a new contract, and tenancy automatically becomes periodic. No fees. 

In theory, (1) and (2) could be periodic as well, but they are subject to the LL agreeing, which they can refuse. 

fujifilm

Hi all, thank you for your replies. The estate agent has confirmed that HM & K will be signing an entirely new contract, which begs the question why they've asked me to sign a change of sharer authorisation in the first place...

saajan_12

fujifilm said:

Hi all, thank you for your replies. The estate agent has confirmed that HM & K will be signing an entirely new contract, which begs the question why they've asked me to sign a change of sharer authorisation in the first place...

Signing a new fixed term isn't the same as starting a new tenancy.
If HM&Your tenancy is fully ended, then everyone should move out, there should be a checkout, damages assessed, deposit returned etc. 
The alternative is to assign the tenancy, so K steps into your shoes as far as the tenancy is concerned. The tenants (now HM & K) sign a new fixed term agreement (just like you & HM can sign a new fixed term now but the tenancy continues with no notice / vacating). 

fujifilm

Thanks @saajan_12. The exact words the estate agent used to me in an email were "HM & K will be signing an entirely new contract, removing you completely". My understanding of this is that it's a new tenancy, not just a new fixed term under the existing tenancy agreement. Have I got the wrong end of the stick here?

saajan_12

fujifilm said:

Thanks @saajan_12. The exact words the estate agent used to me in an email were "HM & K will be signing an entirely new contract, removing you completely". My understanding of this is that it's a new tenancy, not just a new fixed term under the existing tenancy agreement. Have I got the wrong end of the stick here?

Don't think that changes the advice really. Could still be either of the options I suggest. Do the agency still want you to sign something about changing occupant? What exactly does it say, and maybe ask them again why they need this.