FTB: How to juggle house purchase with end of tenancy

sw7

Long time lurker, first time poster...

We're in the latter stages of buying our first home, hopefully in track for completing in the next month but who knows. It feels impossible to tell how long things will take, especially as we're in a long chain.

Until we've got an exchange/completion date, we're not giving notice on our rental property, and have accepted there will almost certainly be an overlap as our tenancy agreement requires two month's notice and it's unlikely (and undesirable) to have this much notice ahead of completing.

However, our tenancy agreement expires in July and the lettings agent is pushing for renewal, or at the very least, requesting a proposed leaving date, which we can't do. I've been very clear that we'd be happy to let it move to a rolling tenancy and that we'll still give sufficient notice once we're ready to move.

My question: is there any reason, from a lettings agent or landlord perspective, why it would be preferable to avoid a rolling tenancy? The notice period will be exactly the same anyway, from my reading of the agreement, since we've had a break clause anyway that allows us to leave with two month's notice. We've been with this agent for 5 years and they've always insisted on us signing a new agreement every year, even though it doesn't appear to offer any additional benefit to either side because of the break clauses. Or is it purely that they want the admin fees from re-signing?

How have others handled the transition from renting to ownership?

Any experience appreciated.

K_S

@sw7 The LA might not like it but you could simply not sign a new contract and then it automatically transforms into a periodic tenancy from 1st August. The benefit of a new contract to the LA usually is that they can charge the landlord a fee for the same. Depending on the wording in the contract, the tenant notice under the periodic tenancy might be as low as 1 month which (for obvious reasons) the LA might not prefer.

As a long standing tenant and the currently long minimum notice that landlords need to give tenants to ask them to leave, I highly doubt they would go down that route.

Countrysider

Letting agents always insist on renewals and hate any mention of periodic tenancies, even though they are your right as a tenant. They were very pushy when tenant fees could be charged for this, but now it's the landlord that is solely hit.

A periodic tenancy gives the tenant 1 months break and landlord 2 months break clause. Most ASTs 'equal' this up so that tenants and landlords both have to give 2 months notice. As a tenant there is very little gained from a renewal as you're effectually signing to give up some of your rights. 

The only reason i renewed tenancies in the past was because i was threatened (and issued with) a S21 if i didn't, as is their right to issue for any or no reason. If you're definitely moving out at some point anyway then i would hold your ground and let them issue a S21 if they so wish. You'll be long gone before they can enforce it. 

C_N_

Just to add, once you move onto periodic tenancy when your fixed agreement ends, they must give you 4 months notice (down from 6 months currently, this ends on 31st May) so this should cover you for any major hold ups with your purchase. 

AnotherJoe

As everyone else has said simply do nothing sign nothing, which puts you on a one month notice tenancy.

Especially at the moment any threat of eviction is hollow, by the time it is issued, corrected, gone to court, you'll be sipping champagne on the one year anniversary of being in your new house.

Good luck and enjoy your new house (eventually) !

TBagpuss

AS others have said, just don't renew - they can't force you and by the sounds of it, you should be long gone before any notice they issued expired!
You could in the mean time tell them that you are hoping to be able to give notice within the next month - it's true, that it what you hope - it doesn't bind you to anything but you're giving them a rough idea of what you are aiming for. 

lookstraightahead

When you go onto rolling it is I think only one months notice? 

movilogo

Simply state that you are going to buy your own house hence you'd move as soon as process completes. Till then you want a rolling contract with 1 month notice. Only way they can kick you out is via court order and I don't think court will take their side because you are paying rent on time and not doing anything illegal in the property. Don't feel intimidated by the letting agents - they are just toothless parasites. 

grumiofoundation

To clarify the above posters comments a statutory periodic tenancy (SPT) is one months notice for the tenant.

If you do not sign a new agreement (no reason for you to) and you stay past end of fixed term you will enter a periodic tenancy - this can be statutory or periodic. 

The periodic tenancy will be contractual if this is stated in your tenancy agreement. The notice period for this does not have to be 1 month, e.g. could be 2 months. Does your tenancy agreement make provision for a contractual periodic tenancy (if not will be a SPT with 1 months notice, to coincide with tenancy period), and if so what does it say about notice?

Also worth noting if you leave before the end of the fixed term you do not have to give 'proper' notice. If you stay 1 day over you are then in a periodic tenancy (whether statutory or contractual).

See links:
https://forums.moneysavingexpert.com/discussion/comment/67759913#Comment_67759913

https://england.shelter.org.uk/housing_advice/private_renting/options_when_your_fixed_term_tenancy_ends


Note - are you in England (shelter link above shelter england). 

sw7

Thanks all. I don't see anything in my agreement about a periodic tenancy after the end of the agreement, or that the two months notice will continue to apply. So I can see why that might not be ideal for them if it drops to one month.

That said, we have a good relationship with both LA and LL, so we're not trying to put them in a position of uncertainty (LA won't care about this but LL might), and will always give as much notice as practicable to allow them to arrange viewings, etc. The unfortunate fact is that we just don't know when we will be leaving (and I wish we did!)

I'll hold tight and just be upfront with them, and hopefully they don't get any ideas about trying to serve notice themselves. Although good to know the law and timing is on our side if we do.

@grumiofoundation we are in England: thanks for the link - very useful.

saajan_12

sw7 said:

Thanks all. I don't see anything in my agreement about a periodic tenancy after the end of the agreement, or that the two months notice will continue to apply. So I can see why that might not be ideal for them if it drops to one month.

If your agreement is silent on what happens after the fixed term, then you'd go onto a statutory periodic tenancy. Your notice would be 1 tenancy period, so in line with your periods. That can be 1 month if served at the right time, or can be upto 2 months - 1 day.