Prohibited Tenant Fees Deed of Surrender

Sangpo

I'm leaving a joint tenancy early and the landlord has agreed to a deed of surrender. The other joint tenant is staying in the property, will be picking up all the rent & there are no arrears or damage to the property. The landlord has agreed to sign the deed of surrender only if I pay him £1500. There is no cost or loss to him at all, and so I think this would count as illegal fees, but he basically won't sign if I don't pay him. Can I get these back later/.take him to court?

user1977

If it's a case where the landlord has complete discretion about whether or not to agree to the surrender at all, then I think the terms on which he does are entirely up for negotiation.

DE_612183

why do you think it's illegal?

PRAISETHESUN

Legally the LL does not have to release you from the tenancy - that's one of the dangers of joint tenancies. The LL would actually be taking on a significant risk by releasing you from the agreement, so they are right to be asking compensation for that. Currently they have two people to chase for money if they ever need too (eg. for rent arrears), but if you leave then it would be just one person. There's nothing illegal about the money being asked for, as everything is up for negotiation when you are asking them to alter the terms of the contract you already agreed to. 

Without the LL's agreement your only other option would be to terminate the agreement in the usual manner, giving notice and having both tenants vacate the property as required.

Voyager2002

PRAISETHESUN said:

Legally the LL does not have to release you from the tenancy - that's one of the dangers of joint tenancies. The LL would actually be taking on a significant risk by releasing you from the agreement, so they are right to be asking compensation for that. Currently they have two people to chase for money if they ever need too (eg. for rent arrears), but if you leave then it would be just one person. There's nothing illegal about the money being asked for, as everything is up for negotiation when you are asking them to alter the terms of the contract you already agreed to. 

Without the LL's agreement your only other option would be to terminate the agreement in the usual manner, giving notice and having both tenants vacate the property as required.

Without the landlord's agreement, so long as the other person continued to pay the full rent there would be no consequences. However, if there were to be any damage or rent arrears the OP would still be liable for these, along with the remaining tenant.

theartfullodger

There cannot be a deed of surrender with a joint tenancy where one tenant remains.  If that happened then the tenancy is continuing isn't it.

propertyrental

A Deed of Surrender is not appropriate in this instance. If the tenancy is surrendered (with the LL's consent and on whatever terms are mutually agreed) then all joint tenants must leave.

The remaining tenant could, of course, negotiate and agree a brand new sole tenancy (or joint tenancy with someone else). In that case

* the original deposit should be returned

* new deposit paid and protected

* new documentation provided (gas report, EPC, Right to Rent, etc )

Alterative would be a Deed of Assignment.....

As for the fee question, yes a fee can be charged, however see the Tenants guidance (p71) here

pinkshoes

Sangpo said:

I'm leaving a joint tenancy early and the landlord has agreed to a deed of surrender. The other joint tenant is staying in the property, will be picking up all the rent & there are no arrears or damage to the property. The landlord has agreed to sign the deed of surrender only if I pay him £1500. There is no cost or loss to him at all, and so I think this would count as illegal fees, but he basically won't sign if I don't pay him. Can I get these back later/.take him to court?

Why do you want to leave?

Is this a 6 month fixed tenancy? How many months into the tenancy are you?

I was under the impression as mentioned above that a surrender would involve the entire tenancy agreement being ended then a new one started with just the other housemate. Are you talking therefore about fees to renew a tenancy (which would not be allowed)?