We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Landlord trying to charge renewal fee?

Me and my partner have been renting the same house for the last 4 years, on a 12 month tenancy agreement that we have renewed every year. This year we are renewing again, however we have asked to only renew for 6 months this time, as we are looking to buy our own house in the near future. The landlords are happy to agree to this. 

They have sent us the new contract to sign, and are requesting a £50 fee for the renewal. Knowing that the Tenant Fees Act is now in place, we have challenged the £50 charge. However they have come back to us stating that the £50 fee is covered as it relates to a "novation" fee. I've tried to look online at what constitutes a novation of tenancy, and as far as I can tell this is for making changes to the contract such as changing a tenant, or adding a clause in for a pet. We do have a pet, however this has been agreed since we first started the tenancy agreement 4 years ago.

My question is, does changing the length of the contract constitute a novation? Is my landlord right to charge me £50 just because the new contract length is shorter?

I think the best thing to do, to avoid the landlord being difficult about the new tenancy, is to pay the £50 and then try to challenge it and request a refund later. If I do this, who can I contact that can help me enforce this, and is this the right thing to do.

Thanks in advance for any assistance. 
«1

Comments

  • pphillips
    pphillips Posts: 1,635 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    The best thing to do is not sign a new contract. 
    I agree, why sign a 6 month contract when you may want to leave sooner.
  • bradders1983
    bradders1983 Posts: 5,684 Forumite
    1,000 Posts Third Anniversary Name Dropper
    edited 1 November 2020 at 3:35PM
    To add to the above, even if you refuse to sign a new contract, the landlord is currently looking at about a year at best to get you turfed out (assuming he wanted to), on the proviso you continue to pay rent on time. So dont worry if you think not signing a new contract will lead to you being kicked out next week or whatever.

    And if you are buying somewhere its not as if you need a reference.
  • diggingdude
    diggingdude Posts: 2,501 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    Just say thanks but no thanks we won't be signing that 
    An answer isn't spam just because you don't like it......
  • pphillips said:
    The best thing to do is not sign a new contract. 
    I agree, why sign a 6 month contract when you may want to leave sooner.
    Initially we were happy to sign a 6 month contract as we're still saving for a deposit so it's very unlikely we'd be ready to leave before 6 months. It would then change to a rolling 30 day contract afterwards.

    If we refuse to sign a new contract, do we have rights which allow us to simply continue on a 30 day rolling contract? Or can the landlord essentially force us to either sign the contract or leave before we're ready? 
  • bradders1983
    bradders1983 Posts: 5,684 Forumite
    1,000 Posts Third Anniversary Name Dropper
    edited 1 November 2020 at 3:54PM
    pphillips said:
    The best thing to do is not sign a new contract. 
    I agree, why sign a 6 month contract when you may want to leave sooner.
    Initially we were happy to sign a 6 month contract as we're still saving for a deposit so it's very unlikely we'd be ready to leave before 6 months. It would then change to a rolling 30 day contract afterwards.

    If we refuse to sign a new contract, do we have rights which allow us to simply continue on a 30 day rolling contract? Or can the landlord essentially force us to either sign the contract or leave before we're ready? 
    Read my post. He can force you to do absolutely nothing. The courts are so clogged up, and cases with months and months or arrears will likely be prioritised.  In fact a year is probably optimistic.

    In the current climate no sane landlord is likely to even commence this procedure if he has rent paying tenants in, especially given the landlord wont see a penny of that £50 fee anyway (i assume its the letting agents charging the £50?)
  • Just read your post now, thanks @bradders1983 we're going to go back to the landlords and advise we won't be signing again and just carry on paying rent on a monthly basis until we're ready to leave.

    Really appreciate your response. 
  • bradders1983
    bradders1983 Posts: 5,684 Forumite
    1,000 Posts Third Anniversary Name Dropper
    Just read your post now, thanks @bradders1983 we're going to go back to the landlords and advise we won't be signing again and just carry on paying rent on a monthly basis until we're ready to leave.

    Really appreciate your response. 
    I added a bit more to my post. I assume its a letting agent asking for this £50 rather than the "landlord"?
  • No it is in fact our 3 landlords. Although we found the property through a letting agent, the property is managed by the landlords, meaning we've dealt directly with them since moving in.

     We completely understand it would be stupid to get rid of rent paying tenants without new tenants lined up, but if they did decide to be snide, and gave us 2 months notice to move out, can we just refuse? I'm assuming there's not really anything they can do without the courts help and as you mentioned they're extremely backed up at the moment so would work in our favour. 

    Just making sure I've understood everything you've mentioned. 


  • bradders1983
    bradders1983 Posts: 5,684 Forumite
    1,000 Posts Third Anniversary Name Dropper
    edited 1 November 2020 at 4:07PM
    No it is in fact our 3 landlords. Although we found the property through a letting agent, the property is managed by the landlords, meaning we've dealt directly with them since moving in.

     We completely understand it would be stupid to get rid of rent paying tenants without new tenants lined up, but if they did decide to be snide, and gave us 2 months notice to move out, can we just refuse? I'm assuming there's not really anything they can do without the courts help and as you mentioned they're extremely backed up at the moment so would work in our favour. 

    Just making sure I've understood everything you've mentioned. 


    They cant give you two months notice. It is now SIX

    https://www.gov.uk/evicting-tenants/section-21-and-section-8-notices

    Add to that the longer length of time it would take through the court system after that 6 months is up....essentially you are probably looking at 18 months quiet enjoyment assuming you keep your rent up to date.

    If they want to do that for the sake of a measly £50, more fool them.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.2K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.3K Spending & Discounts
  • 247.2K Work, Benefits & Business
  • 603.8K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.