Ending tenancy agreement early

darkazuria

We have been renting a flat with for over a year (with a 2 year contract) but my partner has been ill and off work since November. We were hoping he would be returning to work soon but he was admitted to hospital last week and his condition has gotten worse so we can't afford to stay in the flat. We have emailed our agency to discuss leaving before the end of the tenancy.

They have said the following:

• That you will remain liable to pay rent and utilities until the term expires or the property is re-let, whichever is earlier,
• That you confirm understanding; When a new tenant is found to move into the property or the fixed term expires, as per point 5.2 on your tenant offer form (attached)  you will become liable to refund your landlord the pro rata balance of commission from the point that a new tenant moves in, until the end of your agreement. I can confirm that this is calculated at a rate of 8% + VAT of rent.
• That if the new tenancy is for a lesser rent, an amount equal to the difference between the original rent and the new term lower rent figure up to the end of the original fixed term. 
• That you agree to refund the landlord any other reasonable costs they have suffered as a direct result of the early termination of agreement.

We are ok with us covering the rent until a new tenant is found but are confused about the 8% plus VAT fee. Would we have to pay that from the point a new tenant move in til the end of the contract (November)?

Our contract is until the end of November, but we have a break clause that would allow us to leave at the end of May. Because the break clause is so soon we are debating what the best solution would be. Staying until the break clause or leave a month or two early but be liable of the fee. 

Also we are not sure if we would have to pay the fee until the break clause (May) or end of the contract (November).

It's been a very stressful couple weeks being in and out of hospital and all this is quite confusing.

propertyrental

Surrendering a tenancy early is at the discretion of the LL (or his agent) and any terms or conditions the LL wants can be asked for.

The tenant is, of course, at liberty to reject those terms and remain in occupation till the tenancy ends.

The 8% is what the LL is contractually obliged to pay his agent, for the full term of the tenancy, whether you remain or not, so it's harsh, but understandable, that you are being asked to pay this cost.

But why not implement the Break Clause? What are the exact terms of the BC (please quote) and the exact start/end dates of the fixed term?

Or both. Implement the BC and negotiate an Early Surrender in, say, March. Since the tenancy would end contractually in May the fees could not be charged beyond then, but you may find the LL/gent reluctanct toagre an ES once you've served notice under the BC. 

darkazuria

Thanks for the reply. The full term is from 30 Nov 2021 until 30 nov 2023 and details of the break clause from the contract are below.

1. It has been agreed between the Landlord and the Tenant that the Tenancy shall contain an

   eighteen-month break clause. Either party may activate the break clause by giving not less than 60 days prior written notice to the other. In the case of the Tenant, such notice will only be effective if delivered to xxx. In either case, the Tenancy may not expire before 30th May 2023. For the avoidance of doubt, the Tenancy may expire at any point from and including 30th May 2023 until the end of the term.

   
   

   We might try and implement the break clause and then negotiate an early surrender as you have mentioned. We don't mind paying the fees until the end of May, but don't want to have to pay them until the end of November as that would amount to almost one month rent and we would vacate the property only a month or two before the break clause so it wouldn't be worth it. 

   Just is a tricky situation with the break clause being so soon but ideally we would have wanted to vacate the property earlier. 

   
   

propertyrental

Seems a clear BC (some are poorly worded!).

So to end the tenancy on 30th May you'd need to serve notice (ie notice to be received, not posted) on/before 1st April (I think!).  So posted 1st class on/before 30th March.

theartfullodger

Sorry for these problems, sympathy.

You can leave any time you like.  But will remain liable for the rent to end of tenancy:  Negotiate with landlord/agent.

Who wanted the 2 years ?  If not yourselves, why did you agree? 

macman

Have you considered asking the LL for a temporary reduction in the rental, or a rental holiday, to be repaid in an agreed period?
Re-letting a property is an expense that most LL's would wish to avoid, as is losing a reliable tenant.
You have nothing to lose by asking.
I doubt that the void period would be very long in the current market, if there are no issues with the property.

_Penny_Dreadful

I’d use the break clause rather than the early termination and the conditions that go with it. The break clause will give you certainty that your liability will end 30th May during a time when you’re probably already facing a lot of uncertainty. 

darkazuria

Thank you for your replies. 

We are planning on moving with parents and we are struggling to cover the rent as we only have one income (London prices are so high unfortunately and my partner was the one on a higher salary) so ideally want to leave before the break clause.

We told the agency that we want to activate the break clause and end the agreement in May (via email and not post yet) but negotiate an early termination so that the 8% fees they are asking us to pay would only be until May. 

But we just want to be 100% that use triggering the break clause mean the end of the term in May and not November as it would be too much to pay the 8% fees for that whole period.

propertyrental

darkazuria said:

......... ideally want to leave before the break clause. Then you'll need too negotiate and agree terms

We told the agency that we want to activate the break clause and end the agreement in May (via email and not post yet)
This could confuse matters. Might be taken as formal notification in which case you are committed to leaving in May.
Or might not be if notices must be to postal address.
but negotiate an early termination so that the 8% fees they are asking us to pay would only be until May. 

But we just want to be 100% that use triggering the break clause mean the end of the term in May and not November as it would be too much to pay the 8% fees for that whole period.

Triggering the BC will end the tenancy according to the BC!