Charging a change of tenancy fee when I move out?

fujifilm

Ok, that's interesting, thank you. I'm awaiting a reply from the agent on that one. 

The document they want me to sign says (in brief): the new tenant must be referenced and move in on the rent due day. Once the tenancy has been agreed in principle, I have to pay the fee and should K fail the reference check, I am still responsible for the tenancy (I'm concerned about this point, given that my tenancy ends next month and they have already been told that I am going to vacate). It goes on to say the existing deposit will be transferred to the new tenancy (interesting that they call it a new tenancy) and a property inspection will not be carried out at the start of the new tenancy. 

greatcrested

That sounds like an assignment.

If your tenancy was ending you would not need to sign anything.

The deposit would not be 'transferred' but should be releasd from the scheme, returned, and a new deposit taken/protected.

PLease quote exacly what you are being asked to sign: word for word.

saajan_12

fujifilm said:

Ok, that's interesting, thank you. I'm awaiting a reply from the agent on that one. 

The document they want me to sign says (in brief): the new tenant must be referenced and move in on the rent due day. - not sure why they care on the date, but fine. Once the tenancy has been agreed in principle, I have to pay the fee and should K fail the reference check, I am still responsible for the tenancy (I'm concerned about this point, given that my tenancy ends next month and they have already been told that I am going to vacate). - well your tenancy only ends if you and HM both vacate. Else you're in the same position you are now, ie you're still responsible. It goes on to say the existing deposit will be transferred -exactly as you would  for an assignment to the new tenancy (interesting that they call it a new tenancy)-yes the word is unclear, but the rest of the agreement sounds pretty firmly like an assignment.  and a property inspection will not be carried out at the start of the new tenancy. 

-exactly as you would  for an assignment

Overall the agreement sounds like an assignment: the referencing & £50 are part of what the LL wants as a condition of agreeing. If they do, then K steps into your shoes on the current tenancy from the date the assignment is effective. The deposit is transferred, no checkout / inventory is done, as HM & K are jointly responsible for the condition of the property compared to the very start when you & HM moved in. The word 'new' at the end is unclear, I agree but I'd expect that' just an annomaly as the rest of the agreement reads differently. 

fujifilm

Thank you @greatcrested and @saajan_12. Before I post the exact wording of the document, if this is an assignment, then was the estate agent wrong to tell me that HM & K will be "signing an entirely new contract removing me completely"?

EDIT: It sounds like you are both pretty sure that it is an assignment document and I'm having concerns from a privacy perspective about posting the wording, even with personal information redacted. If it is necessary I will post it but I'm just going to hold fire for the time being. 

saajan_12

fujifilm said:

Thank you @greatcrested and @saajan_12. Before I post the exact wording of the document, if this is an assignment, then was the estate agent wrong to tell me that HM & K will be "signing an entirely new contract removing me completely"?

Not necessarily. The deed of assignment WILL be removing you completely. Also HM & K may well be subsequently signing a new fixed term contract after K has replaced you as tenant on the current contract. 

But really, what are you trying to achieve? Ultimately you / HM / K want to change the status quo and you need the LL to agree. If they want to do it as an assignment rather than a new tenancy, thats up to them , so going in circles about the wording isn't really going to help. The LL can just refuse. 

fujifilm

Thank you @saajan_12. 

saajan_12 said:

Not necessarily. The deed of assignment WILL be removing you completely. Also HM & K may well be subsequently signing a new fixed term contract after K has replaced you as tenant on the current contract. 

If they do subsequently sign a new fixed term contract (which it sounds like they will have to) then what is the benefit of assigning the current contract to HM & K and then immediately replacing it with a new contract? Surely the assignment is a completely unnecessary step in this case?

My motivation for this is not wanting to pay fees for a service that doesn't need to happen. I'm not deliberately trying to be awkward, I'm just trying to understand what options we have as a threesome so that the best outcome can be achieved for each of us. My concern is that the estate agents are trying to push us down an assignment route for the sake of earning a fee and then immediately replacing the existing assigned contract with a new fixed term one for HM & K. HM & K have expressed a preference for a rolling contract rather than a fixed term one, which the estate agent are insisting can't happen. It sounds to me like the estate agent is trying to have their cake and eat it by forcing me to agree to an assignment (getting them a fee) and then forcing HM & K to sign a new contract which immediately replaces the one they have just assigned. 

Please correct me if I've misunderstood regarding assigning the contract and then making HM & K sign a new one anyway. 

saajan_12

fujifilm said:

Thank you @saajan_12. 

saajan_12 said:

Not necessarily. The deed of assignment WILL be removing you completely. Also HM & K may well be subsequently signing a new fixed term contract after K has replaced you as tenant on the current contract. 

If they do subsequently sign a new fixed term contract (which it sounds like they will have to) then what is the benefit of assigning the current contract to HM & K and then immediately replacing it with a new contract? Surely the assignment is a completely unnecessary step in this case?

My motivation for this is not wanting to pay fees for a service that doesn't need to happen. I'm not deliberately trying to be awkward, I'm just trying to understand what options we have as a threesome so that the best outcome can be achieved for each of us. My concern is that the estate agents are trying to push us down an assignment route for the sake of earning a fee and then immediately replacing the existing assigned contract with a new fixed term one for HM & K. HM & K have expressed a preference for a rolling contract rather than a fixed term one, which the estate agent are insisting can't happen. It sounds to me like the estate agent is trying to have their cake and eat it by forcing me to agree to an assignment (getting them a fee) and then forcing HM & K to sign a new contract which immediately replaces the one they have just assigned. 

Please correct me if I've misunderstood regarding assigning the contract and then making HM & K sign a new one anyway. 

If its a new tenancy, the LL has to carry out a checkout, return deposit, do an inventory all for free. With an assignment, the damages from You & HM's tenancy carry through once the tenancy is assigned to HM & K, so only one checkout is needed when they leave plus they earn £50. 

Yes a completely new tenancy might be better for you, but the three of you want something that you don't have a contractual right to: namely for HM & K to become the tenants. The LL is free to agree or refuse or agree subject to certain criteria. The assignment, one continuous tenancy and £50 seems like the criteria. You can agree, or stick to your current contract (everyone vacates or you remain liable for tenancy). 

fujifilm

Thank you very much for your advice. I really appreciate the time you’ve taken!