Advice needed re letting contract situation

[ilo.na]

Hi Everyone,

Hoping someone might have been in a similar situation in the past and can give me some advice...

I have been renting a flat in ED for the last 3 years and the lease is coming up for annual renewal in August. During the last renewal, we managed to negotiate a 6-month-break-clause. I deal directly with the landlord and the contract is arranged via Foxtons.

I am now looking at potentially buing a place (have not taken any concrete steps yet), so obviously being stuck in a 12 month fixed term tenancy with an obligation to cover the rent up until the term ends would not be ideal.

I have approached my landlord to explain the situation and asked if it was possible to change the fixed term tenancy into a monthly periodic tenancy. He advised that he is under contract with Foxtons and that they would not agree to this, even though I suggested we sign a new contract just stating that it's now a monthly periodic tenancy, just so that Foxtons can charge us their contract renewal fee. So it seems while my landlord would be fine with it (seeing we have been renting the place for 3 years), the problem appears to be with Foxtons...

I don't know what to do now... Is my only option to stay on and put the plan to buy on hold until the 6 month break period that he offered has passed or are there any alternatives?

Many thanks in advance!

ilona

[Izodia]

My understanding of these things is that if you didn't sign a new contract, you would automatically default onto a periodic tenancy contract. Under that, your notice period is based on how often you pay rent. So if you pay monthly, you'd need to give a months notice. Note that it's a months notice from your next payment date.

So in your situation the ideal would be to persuade your landlord and Foxtons into doing nothing.

[ilo.na]

Thank you Izodia!

I have a feeling Foxtons won't agree as they would lose out on the contract renewal fee they would normally charge at that stage.

They have already been in touch asking if we would like to renew (the landlord also indicated he will want to increase the rent). I wonder what would happen if we told them we were happy to stay in the property, but simply don't return the contract... Would that mean it would turn into a periodic tenancy automatically or would they be able to kick us out? :-s

[Izodia]

I think that's where it gets tricky. When it happened to me, we didn't speak to the agents and the agents didn't speak to us...it all just drifted. But if Foxtons are already breathing down your necks, I guess they'll ask you to leave if you don't sign a new contract. Have you spoken to Foxtons? They might surprise you...unlikely but worth a try.

[binary_star]

It is not necessary to sign a new contract for an Assured Shorthold Tenancy as by default it will become a "statutory periodic tenancy" at the end of the fixed term.

You can end a SP tenancy by giving notice at the end of the rent period (duration depends on the rent term so if you pay monthly, you'll need to give 1 clear month to your landlord). To evict you without reason, your landlord will need to give notice via a section 21 notice to quit...if one was served at the beginning of your contract (which is standard from Foxtons) this will be invalid for the SP tenancy as it's classed as a new tenancy. The S21 will give you 2 months 'notice'...you can't actually be evicted until your landlord is granted a possession order from the court, but you don't want to go there though obviously.

Foxtons may well bully your landlord and insist that he renews the contract so they can extort more fees out of him and you...they are slippery f*ckers and their contracts are always getting into trouble with OFT so he may well decide he'd rather/needs do that under their terms.

Good luck.

[Mustard]

Has the landlord used Foxtons before your tenancy? It would have to be the landlord asking you to leave, not Foxtons, unless they have something totally bizarre in their contract with landlord giving them power of attorney. I'd just ignore them and see what happens. I once had them come to see a house I had to rent and they said they would charge 17% to find me a tenant. That was about ten years ago. It was double what any other agent was quoting.

I agree with what binary_star has said, so ask your landlord to double check the contract as to what his obligations are.

Does anyone know if the Unfair Terms in Consumer Contracts Regulations 1999 or Unfair Contracts Term 1977 Act would cover this?

[Otta]

Foxtons can't force you to do anything, but I guess it depends on the terms of their contract with your landlord.

I'd call them and chat, and suggest that if they are good to you, then you might like to use them when you come to buy your new place...

[red devil]

Although all well intentioned, I wouldn't take advice from here, no one has seen the contracts and clauses contained therein. Judging by the reputation Foxtons have, I doubt it will be a bog standard AST. Your best bet is to take the contracts to Citizen's Advice who should be able to give you clear legal advice where exactly you stand...

[ilo.na]

UPDATE!

Thanks for all the advice so far, guys!

So I popped by Foxtons yesterday and spoke to their contract renewals team who advised that provided the LL agrees, we could sign another AST, but with the option to give a 2-month notice.

Today I then heard back from the LL advising that since we have already done 2 renewals, we can now opt out of their contract, which is great news!

However, the LL now suggested we sign another AST subject to 2 months notice after the first 4 months! Arrrrgh!

Since Foxtons are now out of the picture, I would like to suggest to him to not sign anything and just let it default to the statutory periodic tenancy with one month notice. Do you reckon that is a good idea? Or is there anything he can do (i.e. kick us out) if we refuse to sign a new contract?

Thanks again!

[Otta]

Well he'd be within his rights to give you notice and ask you to leave if you refuse to sign a new contract.

How about haggling with him and asking for a 2 month notice period but forget the first 4 months bit... Buying a place takes so long from start to finish, I don't think 2 months notice would really do you much harm.