AST: Early termination fees?

moneysaver1978

We are currently in an 12-month AST which isn't due to expire till Sept and there's a clause:

If the Tenant vacates the Property during the Term apart from according to any agreed break clause which is included within the Agreement, the Tenant will remain liable to pay Rent and any other monies payable under this Agreement until the Term expires; or the Property is re-let with the Landlord’s consent whichever is earlier.

We enquired with the letting agent on the process of getting the landlord's consent and they replied that there are early termination fees as follows:

• Tenancy agreement fee £240.00
• Referencing fee: £75 per tenant
• Check out fee: £138.00
• Inventory/Check in cost: £174.00

Does this sound right? We are confused because we cannot find these fees anywhere in the agreement and are we meant to be paying these types of fees for the new tenants? The closest thing we could find relating to fees is this one:

To pay for the cost of checking the Inventory and Schedule of Condition at the termination of the Tenancy.

We have no problem with these fees if these are legal and appropriate but the letting agent was being vague.

Robbo66

As you are looking to do an early termination of your agreement then you can be charged the landlords re let costs. There will be a reference to these charges on the Agents website

theartfullodger

Are these fees specified in the tenancy also?  If not I suspect unenforceable.

Maybe check with shelter website.

GDB2222

“The Tenant will remain liable to pay Rent and any other monies payable under this Agreement until the Term expires; or the Property is re-let with the Landlord’s consent ”

The Landlord will only consent to re-let if you pay his costs. 

The agents are rather loading the costs on, though. £240 for a new tenancy agreement is way OTT. Similarly charging £300+ for check out and check in seems excessive. 

Do you have any direct contact with the owner of the property? If so, have a word with them, and see if they will lean on the agents to be more reasonable. Otherwise, you are not in a good bargaining position, I’m afraid. 

pinkshoes

Well your other option is to keep paying rent until September...

They do seem a little steep (particularly the tenancy agreement fee - does this include credit checks??) although they are costs that would not have been incurred by the LL until September so you will need to pay them. 

You are essentially buying your way out of the tenancy.

propertyrental

You have no automatic right to end the tenancy early. Unless there is a Break Clause in the TA.Is there?

Assuming not, you need the LL's consent, and he can demand what he wants. You can agree, or keep to the original contract you signed.

RedFraggle

I've just paid the best part of £800 to end a tenancy 3 months early. The rent would have been £3600.
It was the standard cost for that letting agent (Sequence group). Extortionate but permitted and I'm still better off. 

Wanderingpomm

Are those the fees they charge the landlord? Are they advertised? They are only permitted to charge a fair and reasonable cost.have you checked for a break clause? 

doodling

Hi,,

Wanderingpomm said:

Are those the fees they charge the landlord? Are they advertised? They are only permitted to charge a fair and reasonable cost.have you checked for a break clause? 

I don't believe that is the case - there is no requirement for any early termination fees to be fair or reasonable.  The tenant has agreed to pay rent until the end of the fixed term (or the next break point if there is one), it is entirely the landlord's choice whether he wants to accept something else, and what that something else is.

Edited to add: of course, if those fees were agreed in advance (e.g. in the tenancy agreement or some other communication between landlord/agent and the tenant) then the landlord needs to stick to what was agreed.

RedFraggle

Wanderingpomm said:

Are those the fees they charge the landlord? Are they advertised? They are only permitted to charge a fair and reasonable cost.have you checked for a break clause? 

If the question was to me then yes. All above board as standard costs. 
My purchase went through much quicker than anticipated and my landlady was extremely quick in getting new tenants in to help me out. 

macman

The OP will be liable for the check-out fee anyway. They are just paying it now rather than at the later date set by the TA.