Late rent payment calculations

sandyk01

Hi

I wondered if someone could help.

I went through a divorce and got my house which had to be rented out as I needed to leave town. I have had tenants in since June 2022. Renting at 1500. Rent since then hasn't been increased. On the whole good tenants. I have immediately reaponded to any issues i.e. blocked drains etc on the same day so the house is ijngood state of repair.

However due to the mortgage rate increase and me now being single I decided to sell. All along they have been somewhat difficult which is understandable. I gave them lots of notice- very mindful of viewings and said they could leave whenever they wanted. They requested Rent not be increased which I agreed. In January section 21 was served as I need to try and sell it empty. Im struggling with the mortgage payments and paying tax so moved in with my parents in the interim. Tenants due to leave March but are refusing and are being dishonest on the whole. 

They paid part Rent on 21/02 however owed £616.33 which they paid earlier this week but it was 27 days late. The agency said they don't do late payment fees but my AST clearly says they do and I feel the agency are supporting the tenants more. So how would the 27 days late rent interest be calculated 
The tenancy agreement states "the tenant will on demand pay to the Landlord interest on that amount at the rate of 3% above the Bank of England Base Rate calculated from the date due until actual payment".

Can someone help with the calculations please as I can't really trust my agency either. 

Thank you!

anselld

616.33 * 8.25 / 100 = 50.85 if they were a year late
50.85 * 27 / 365 = 3.76 for 27 days late

It is not mathematically perfect but it illustrates why the agency don't bother, because even with relatively high base rates the fee is trivial.

You would be better to concentrate on acting upon your s21 as the tenant has clearly been advised that it does not compel them to leave.  Next time they are late payment issue a s8 also.

sandyk01

Ah ok that makes sense! I wasn't sure what that process looked like. 

Youre right it's pointless pursuing that so I'll just continue with the court process.

Thank you!

theartfullodger

Forget late rent payments.. if it ever gets to court easily challenged as unfair , badly worded(means not what you thought) or invalid.

Just serve s8. S8g10 may be validly served if only 1p underpaid for just one day.

Very cheap way if sending a message.

What reference would you provide?