Student tenancy agreement - change of tenant

jonesa_2

Hi, my son during his first year if uni last year signed an agreement with a letting company for a house this year, due to start August 1st. Sadly, he wont be returning to the uni and therefore doesnt need the accomdation. Obviously this descion wasnt taken lightly and he knew he'd have to find a replacement. He'd done this and the other guy is ready and waiting to move in on 1st August, as a sweetner we've even offered to pay the first 2 months rent and are also aware that we'll have to pay the letting agent a fee (althought found out today that is £320, which seeems a little extorinate!), but obviously more than happy to pay it if needed.
Now the problem is that the letting agents have said thats fine but he needs to get the other 5 original students to re-sign their agreements and guarentor agreements and this is where the problem starts, as one of them is being a little akward and refusung to sign. So, he is unable to action the swap and therefore in theory if this guy refuses to do that for the whole term, my son would be liable for the whole years rent. 
This seems a little unfair to me as the agreement he signed was between him and the landlord/letting company, they didnt sign a combined agreement.
Does anyone have any advice on this? 

Comms69

they didnt sign a combined agreement.

I think they probably did. Double check

princeofpounds

Comms69 said:

they didnt sign a combined agreement.

I think they probably did. Double check

The phrase you are probably looking for is 'joint and several' just FYI.

Any idea why this other housemate is refusing to sign? He is at risk of creating a situation where there is a doubtful rent payer (your son) in his house. That may well cause him problems, including being sued himself by the landlord.

The agent/landlord is also possibly breaking the tenant fees act by asking for so much money (see 'Changes of Tenancy' over halfway down). But raising this before the deal is done has the potential to throw it all off. In your shoes, I would get it all done and then demand the money back from the agent/landlord.
https://england.shelter.org.uk/legal/housing_options/paying_for_accommodation/tenant_fees/tenant_fees_permitted_payments

jonesa_2

Thanks @Comms69, I am trying to get a copy of the agreement that was signed, thats obviously key. 

jonesa_2

Thank you @princeofpounds thats good advice and not something I had thought of. No idea why really other than he is a bit of an idiot and just trying to be awkward and certainly something Im going to try and express to the letting company when I ring them later. 

princeofpounds

jonesa_2 said:

Thank you @princeofpounds thats good advice and not something I had thought of. No idea why really other than he is a bit of an idiot and just trying to be awkward and certainly something Im going to try and express to the letting company when I ring them later. 

The letting company aren't going to care about whether a (presumed) co-tenant is being an idiot or not. It is not their problem, and they are not responsible for him in any way. To be clear, they are not providing a service to your son - they work for the landlord only. Your son needs to speak to his co-tenant ASAP and find out what the issue is.

jonesa_2

princeofpounds said:

jonesa_2 said:

Thank you @princeofpounds thats good advice and not something I had thought of. No idea why really other than he is a bit of an idiot and just trying to be awkward and certainly something Im going to try and express to the letting company when I ring them later. 

The letting company aren't going to care about whether a (presumed) co-tenant is being an idiot or not. It is not their problem, and they are not responsible for him in any way. To be clear, they are not providing a service to your son - they work for the landlord only. Your son needs to speak to his co-tenant ASAP and find out what the issue is.

Totally agree and understand that they are looking out for their client. 

greatcrested

until you establish your son's tenancy agreement it is difficult to advise. He has either

1) a TA in his sole name (ie for his room + shared use of communal areas in a HMO), or

2) a 'joint and several' TA in the names of all 6 tenants (ie for the entire property)

If 1) above, any change is between him and the LL - the other 5 are not party to his contract so do not need to be consulted.

If 2) above, any change requires the agreement of all 6 tenants, plus landlord (plus of course the replacement tenant).

There are two ways to amend the arrangement:

3) surrender the existing tenancy (whether 1) or 2) above) and create a brand new one to replace it. Any deposit already paid/protected would be returned and a new deposit for the new tenancy taken/protected

4) maintain the existing tenancy, but assign the replacement tenant in the place of the outgoing tenant (via a 'Deed of Assignment).

Re fees, read

https://www.gov.uk/government/publications/tenant-fees-act-2019-guidance

silvercar

greatcrested said:

until you establish your son's tenancy agreement it is difficult to advise. He has either

1) a TA in his sole name (ie for his room + shared use of communal areas in a HMO), or

2) a 'joint and several' TA in the names of all 6 tenants (ie for the entire property)

If 1) above, any change is between him and the LL - the other 5 are not party to his contract so do not need to be consulted.

If 2) above, any change requires the agreement of all 6 tenants, plus landlord (plus of course the replacement tenant).

There are two ways to amend the arrangement:

3) surrender the existing tenancy (whether 1) or 2) above) and create a brand new one to replace it. Any deposit already paid/protected would be returned and a new deposit for the new tenancy taken/protected

4) maintain the existing tenancy, but assign the replacement tenant in the place of the outgoing tenant (via a 'Deed of Assignment).

Re fees, read

https://www.gov.uk/government/publications/tenant-fees-act-2019-guidance

Deed of assignment is what was used when my offspring were students, though that document linked by @greatcrested is interesting in that it doesn't require the guarantors to sign. Page 4 mentions that the guarantors should "....have been informed of the changes to the Tenancy and been given the opportunity to approve them in writing in order to preserve their obligations. " I don't know where the written approval would be. A shame for the guarantors if Student reliable was replaced by someone less reliable.

saajan_12

Two things to note:
1) your son wants to amend a binding contract with at least the landlord, so everything is subject to whatever conditions the landlord places - if that's other tenants / guarantors agreeing, then little you can do. If son really has an individual contract for 1 room then it's meaningless to have others resign separate contracts, but LL can demand they jump through the hoops. Though I expect more likely, it is a joint & several contract for the whole house in which case the others would need to sign something (new agreement or s+deed of assignment). 

2) Fees for amending an existing contract (or terminating early so a new one can be signed) are allowed, but usually capped unless the LL / LA can demonstrate higher costs. With a reference available for £20 and a bit extra for the agents time in arranging signatures, but no advertising / tenant finding needed, I think they'll struggle to get to £230. I would ask them to justify the cost.

greatcrested

silvercar said:

greatcrested said:

until you establish your son's tenancy agreement it is difficult to advise. He has either

1) a TA in his sole name (ie for his room + shared use of communal areas in a HMO), or

2) a 'joint and several' TA in the names of all 6 tenants (ie for the entire property)

If 1) above, any change is between him and the LL - the other 5 are not party to his contract so do not need to be consulted.

If 2) above, any change requires the agreement of all 6 tenants, plus landlord (plus of course the replacement tenant).

There are two ways to amend the arrangement:

3) surrender the existing tenancy (whether 1) or 2) above) and create a brand new one to replace it. Any deposit already paid/protected would be returned and a new deposit for the new tenancy taken/protected

4) maintain the existing tenancy, but assign the replacement tenant in the place of the outgoing tenant (via a 'Deed of Assignment).

Re fees, read

https://www.gov.uk/government/publications/tenant-fees-act-2019-guidance

Deed of assignment is what was used when my offspring were students, though that document linked by @greatcrested is interesting in that it doesn't require the guarantors to sign. Page 4 mentions that the guarantors should "....have been informed of the changes to the Tenancy and been given the opportunity to approve them in writing in order to preserve their obligations. " I don't know where the written approval would be. A shame for the guarantors if Student reliable was replaced by someone less reliable.

Good point silvercar.

I've not seen a free Deed available on the web that includes guarantor signitures, but obviously that would be best. If you or anyone knows of a suitable resource I'd be interested for future reference as this issue comes up fairly regularly.