Rent in Advance- Early termination = refund?

homehelp123

TLDR: If we pay 6 months rent in advance and then terminate the contract early, are we refunded the remaining month(s) rent from our landlord?

Hi, myself and my partner have rented the same flat for nearly 2 years. 

Always in 6 month instalments with a new contract each time- as the landlord had requested rent payment upfront/in advance.

It’s time for the next contract to be signed, but the letting agent informed us the landlord wanted to switch to a rolling contract. 

Better for us a we could pay monthly, and it would allow us a 1 month notice to terminate the contract early (and the landlord a 2 month notice period). 

However on receiving the new contract, they had changed their mind and have sent us another 6 month contract. But this now includes the early termination clauses as well (previously we didn’t have). This means the rent payment required is still the entire 6 months rent in advance. 

If we pay all upfront and then terminate the contract early, will we be refunded the money by the landlord for the months we will not longer be there?

Sorry if that’s a silly question, but I can’t see the point in them giving us and themselves an out but also locking us in for 6 months if it doesn’t benefit them?

FlorayG

Are you planning to move soon? Because when the new Renter's Rights bill is passed all of this will be irrelevant; there won't be any fixed term contracts and large amounts upfront won't be allowed
As for your actual question, it doesn't make sense to do that, I would get in writing from the landlord if he will refund rent if you move

PRAISETHESUN

After the fixed term ends you will automatically move onto a periodic tenancy - this is governed by housing law and there is nothing the LL can do to prevent this. It does not require any input from the LL or their agent, regardless of what they might say. Simply put, if you don't want to sign another 6 month tenancy agreement, then don't sign another 6 month tenancy agreement. Of course this means that you have less protection if the LL wants to serve S21 and start the process to evict you, so you need to weigh that up.

With respect to the rent, my understanding of having been in a similar situation is that if you pay the rent up front for the 6 month period, then the default position is that the LL is entitled to keep it. The LL doesn't have to agree to mutually end the tenancy during the fixed term, and can impose can impose whatever terms they like if they wish to do so. You can negotiate of course, but it's all subject to mutual agreement. Otherwise if there's any specific mention of a break clause in your contracts then that should dictate what the arrangements for what happens to overpaid rent.

theartfullodger

What EXACTLY does the tenancy state (not what landlord says..) about payment of rent, please??  

Depending on that we can answer correctly.

homehelp123

theartfullodger said:

What EXACTLY does the tenancy state (not what landlord says..) about payment of rent, please??  

Depending on that we can answer correctly.

I’ve included the only parts of the tenancy agreement that discuss rent. And the email from the Letting agent, as she’d previously said we wouldn’t need to sign another contract as it would roll on. However the landlord changed their mind so we were sent the 6 month agreement as in OP. 

Thank you all for your help so far!

homehelp123

FlorayG said:

Are you planning to move soon? Because when the new Renter's Rights bill is passed all of this will be irrelevant; there won't be any fixed term contracts and large amounts upfront won't be allowed
As for your actual question, it doesn't make sense to do that, I would get in writing from the landlord if he will refund rent if you move

We are starting to look at buying, but no set time frame at the moment.

Thank you for that information! 

And no, it doesn’t make sense- I’m glad it’s not just me lol!