Early tenancy surrender costs

sgmplym

Hello, myself and my partner unfortunately broke up a week into moving into a new property and after signing the 12 month contract, backnin February time. We have been speaking to the letting agent and they have al agreed that I can come off the tenancy at the 6 month period, my ex is staying in the house and has signed a further 6 month agreement on her own terms. 
The letting agent wants me to pay £180 surrender fees! Is this right? Can they do this?

anselld

They can charge a "reasonable" fee for early surrender which should not exceed their loss/cost.  If it was a simple amandment they would be capped at £50 but this is a surrender and re-issue of a new tenancy which they would presumably argue costs them more in admin time, changing the deposit, referencing costs, etc, etc. 

You could ask them how they justify it as reasonable, but bear in mind they are not obliged to release you at all.

saajan_12

sgmplym said:

Hello, myself and my partner unfortunately broke up a week into moving into a new property and after signing the 12 month contract, backnin February time. We have been speaking to the letting agent and they have al agreed that I can come off the tenancy at the 6 month period, my ex is staying in the house and has signed a further 6 month agreement on her own terms. 
The letting agent wants me to pay £180 surrender fees! Is this right? Can they do this?

Remember they have no obligation to agree to anything but full rent, full 12 months with both of you on the tenancy. Anything else is a negotiation - you don't have to like it, but your alternative is to continue on the tenancy as is. 

As to whether a fee is reasonable, £160 sounds cheap at the cost, considering:
- re-protect deposit 
- re-run references to check ex can afford alone
- re sign contracts, provide docs etc
- less security as only one person on tenancy not two

I'd bite their hand off, with a thank you!

emca

We’ve just told our letting agent we will need to leave the tenancy about 6 months early (bought a house sooner that we had planned) and they’re charging us £550. We just had to think of it as part of the moving budget as we’d still rather that than pay rent and mortgage for 6 months, and as previously stated, they didn’t have to agree to let us leave at all. 

deannagone

I think £160 is rather cheap to release yourself from another 7 months of tenancy, and don't forget the release from the stress of living with someone you don't want to live with anymore.