Contract exchanged - safe to buy interior?

Mlasso

Mlasso said:

Thanks. CPT is not mentioned in my rent contract.

I am paying rent for 6 months upfront based on my current contract, does it mean that if I stay at any moment after 18th of June (for example fro 5 days only), contract would be for 6 more months from when it originally ended?

Apologies, I do have CPT in my contract. Just found it. Here is the quote:

If the Tenant continues to live in the Property after the expiry of the fixed Term with the

Landlords' agreement and no further Tenancy has been agreed by the Parties, then from

the expiry of the fixed Term the Tenant shall occupy the Property under a statutory

periodic Tenancy in accordance with section 5(2) of the Housing Act 1988.

MaryNB

Mlasso said:

Mlasso said:

Thanks. CPT is not mentioned in my rent contract.

I am paying rent for 6 months upfront based on my current contract, does it mean that if I stay at any moment after 18th of June (for example fro 5 days only), contract would be for 6 more months from when it originally ended?

Apologies, I do have CPT in my contract. Just found it. Here is the quote:

If the Tenant continues to live in the Property after the expiry of the fixed Term with the

Landlords' agreement and no further Tenancy has been agreed by the Parties, then from

the expiry of the fixed Term the Tenant shall occupy the Property under a statutory

periodic Tenancy in accordance with section 5(2) of the Housing Act 1988.

To clarify, you don't need the landlord's agreement to stay, it automatically becomes a period tenancy even if no discussion is had with the landlord. It's only helps if you're worried they'll issue an S21 - which they wont if you're a good tenant and they wish to continue letting it. It's not in their interest to start eviction proceedings to get you out earlier than you intend on leaving. If they do want the property back they'll issue an S21 regardless of whether you ask to stay or not. 

Mlasso

Ok, and if I leave property before 18th of June (last day of contract) than that is it, it is considered end of tenancy even if I don't give notice?

Slithery

Mlasso said:

Ok, and if I leave property before 18th of June (last day of contract) than that is it, it is considered end of tenancy even if I don't give notice?

Correct.

Please read the sticky that people have spent hundreds of hours contributing to so that the same things don't need to be explained over and over again...

Ending/renewing an AST

Mlasso

Thanks. I read it and I found this sentence (quote):

"The Court of Appeal ruled (Laine v Cadwallader) that in a SPT, one month Notice, ending with a tenancy period, was required by a tenant based on common law."

Can you please confirm that:

1. in case of SPT I would need to give one month notice although I had 2 months notice in original contract and I am paying rent 6 months upfront based on original contract?

2. Does it also mean that if I pay 6 months upfront when SPT starts (based on original contract), then after one month I give notice (which is also one moth, so I leave after 2 months), then I should get 4 months of rent refund?

GDB2222

Mlasso said:

Thanks. I read it and I found this sentence (quote):

"The Court of Appeal ruled (Laine v Cadwallader) that in a SPT, one month Notice, ending with a tenancy period, was required by a tenant based on common law."

Can you please confirm that:

1. in case of SPT I would need to give one month notice although I had 2 months notice in original contract and I am paying rent 6 months upfront based on original contract?

2. Does it also mean that if I pay 6 months upfront when SPT starts (based on original contract), then after one month I give notice (which is also one moth, so I leave after 2 months), then I should get 4 months of rent refund?

There's no need at all to pay 6 months in advance on a SPT. 

But, you are only liable for rent until your (valid) notice period expires. 

saajan_12

Mlasso said:

Thanks. I read it and I found this sentence (quote):

"The Court of Appeal ruled (Laine v Cadwallader) that in a SPT, one month Notice, ending with a tenancy period, was required by a tenant based on common law."

Can you please confirm that:

1. in case of SPT I would need to give one month notice although I had 2 months notice in original contract and I am paying rent 6 months upfront based on original contract?

2. Does it also mean that if I pay 6 months upfront when SPT starts (based on original contract), then after one month I give notice (which is also one moth, so I leave after 2 months), then I should get 4 months of rent refund?

Depends.. 
What does it say at the start of your contract re what the 'periods' are - eg rent quoted monthly (just payment dates for 6 of hte months are together) or is everything quoted 6 monthly? 

In a SPT, you have one tenancy period notice (except for weekly then its 4 weeks and annual tenancies then its 6 months). While usually periods are months, that's not always the case. If you're on a 6 monthly SPT, then the notice will be 6 months. If you're on a monthly tenancy then notice will be 1 month (in line with the periods in both cases). 

----
However maybe the forum has scared you too much. Its important you understand and are prepared for the risks, but you still have the contractual rights since YOU HAVE EXCHANGED. Going back to this timeline:

Mlasso said:

I need help in another case then. This is the current state of events:

- Tenant from my future property is supposed expected to leave on 4th of june
- Completion is contractually supposed to be on 8th of june (subject to vacant posession)
- My current rent agreement (where I live now) is until 18th of June.  for the fixed term, and can be periodic thereafter

If tenants don't leave by 4th June, then you should make your solicitor aware (so as to not release funds early or at least ask the seller's solicitor holds them pending confirmation of vacant possession on 8th June).
If there is no vacant possession on 8th June, your solicitor should send a notice to complete in 10 days. Your vendor will be liable for (mitigated) costs so you shouldn't lose anything out of pocket as long as you choose a cost effective route. 

Between 8th and 18th June, you'll likely get a good idea of whether the move is going anywhere imminently or not, and can decide accordingly. If yes, then you could stay at your current property until 18th, and then either take a short term let elsewhere, or staying on under a periodic tenancy if its a monthly, and pass on any extra rent + extra moving costs to the vendor. If not, then you'd need to look into whats best longer term, eg staying on as a periodic or elsewhere while you find somewhere else to buy (and pass on the price difference to the vendor). 

Mlasso

Thanks for your comments. This sounds good.

Regarding my rent costs (if we wait for completion and I move out of my current home), what is regarded as fair rent cost? Can I rent the same size apartment (2 bedroom) in a same building as the one I bought? I would probably pay it the same price as the seller's tenant (who is blocking the completion) is paying. Can those costs be passed to the seller and I wait for the completion?

This would also be good because it will be easier to move to my home if I am in a same building

MaryNB

Mlasso said:

Thanks for your comments. This sounds good.

Regarding my rent costs (if we wait for completion and I move out of my current home), what is regarded as fair rent cost? Can I rent the same size apartment (2 bedroom) in a same building as the one I bought? I would probably pay it the same price as the seller's tenant (who is blocking the completion) is paying. Can those costs be passed to the seller and I wait for the completion?

This would also be good because it will be easier to move to my home if I am in a same building

Short term rentals are often more expensive and harder to come by. If you sign another assured tenancy agreement you'll be tied in for at least 6 to 12 months - landlords dealing with ASTs prefer long term tenants. If the rental market where you are is anywhere as crazy as where I am no one will rent to someone who's only intending to stay for a few months (unless it's a designated short term let, which as I said before will likely be much more expensive). Your best bet is to stay put as long as possible. It may be easier to move between flats in the same building but you'll still have to move into that building in the first place, then move your stuff a second time. That's if you can find somewhere to rent in that building.

Unless your current landlord wants to take back possession of the property and stop letting it, they're very unlikely to start eviction proceedings against a paying tenant just because you refuse to renew a contract so you'll probably be fine staying at your current place until completion. Even if they do want to evict you it'll take several months.

saajan_12

Mlasso said:

Thanks for your comments. This sounds good.

Regarding my rent costs (if we wait for completion and I move out of my current home), what is regarded as fair rent cost? Can I rent the same size apartment (2 bedroom) in a same building as the one I bought? I would probably pay it the same price as the seller's tenant (who is blocking the completion) is paying. Can those costs be passed to the seller and I wait for the completion?

This would also be good because it will be easier to move to my home if I am in a same building

There's no fixed rule, and difficult to say, just depends on the circumstances at the time. To give some examples, but by no means definitive answers:
- if expected to take 4 weeks for a court order to evict tenants and get vacant possession, perhaps unreasonable for you to embark on a new 6/12 month tenancy in the new building
- if it becomes clear nothing forthcoming for months, then perhaps unreasonable for you to keep items in storage and bill a hotel indefinitely
- if another building with reasonable space / location plus paying movers to the new building is cheaper than a flat in the exact new building, then the former would be more reasonable

By all means return if / when that happens with whatever latest info you have at the time and we can try to suggest.