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Does anyone have any experience on a "Surrender" of thier Assured Shorthold Tenancy Agreement or know of it that can advice?
Surrender - this is when both parties agree to being released from the agreement before the end of the Fixed Term period.
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The situation at present is that myself and my partner have found new jobs which effectively means we have to relocate. We discussed this with our Landlord and Letting Agent, who then agreed we could surrender the tenancy subject to new suitable tenants being found. The Landlord then proceeded to relist the property via the same Letting Agent and has found new tenants to move in.
All good so far; however now the Landlord wishes to retrieve the cost of relisting the property and finding new tenants from us.
Can the Landlord do this?
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Is there any small print?
But effectively, yes, they can, after all, you are severing a tenancy with the potential that the landlord could charge you for the rent for the remaining term, or he could be seriously out of pocket. Its expenses he wouldnt have had he not agreed to surrendering your tenancy.
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That is a myth.
According to the Office of Fair Trading and thier Guielines on Unfair Contract Terms, this simply isn't true and is especially not applicable to us.
The guidelines are as follows:
Section 4.23 Our concerns arise only where contract terms allow landlords to refuse to accept the early surrender of fixed term agreements and insist that tenants pay rent for the whole of the period of the tenancy. If tenants need to leave, it is not fair for them to be bound to pay rent if another suitable person is willing and able to do so. For this reason we consider that, in fixed term tenancies, an absolute ban on both assignment and subletting may be considered unfair.
What isn't of course clear is how much or indeed if any cost is applicable to us, as tenants, for relisting the property.
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And I've gone through the small print with a fine tooth coomed without avial; still, I would think that mentioning surrenders in the small print would not be a popular choice. Hence all the legal dog work, if I can call it that,
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Well that would make fixed term tenancies pointless wouldnt it?
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I would say "Yes, the landlord can do this"
By leaving the property before the end of the AST you have caused the landlord additional expense in finding a new tenant. Its only fair in my opinion that you should bear that cost, providing it is reasonable of course.
There should be no element of profit for the landlord built into whatever you are asked to pay, but he should be able to recover what it has cost him to replace you.
OFT guidelines work both ways. The OFT guidelines for landlords states "You can place reasonable conditions on a surrender, to ensure that you are not out of pocket, but you should not seek to penalise the tenant in addition; this is regarded as unfair by the Office of Fair Trading"
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Thank you Phil. At this point in time I'm trying to acertain at this point what would be "reasonable"
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"That is a myth"
It is far from a myth believe me!
You say "According to the Office of Fair Trading and thier Guidelines on Unfair Contract Terms, this simply isn't true"
It may be true that the OFT considers it unfair for a tenant to be bound to pay rent if another suitable person is willing and able to do so.
And rightly so in my opinion.
But that only applies if another suitable person is willing and able to do so., or in other words, if the landlord can find a suitable tenant to replace you.
If he had been unable to do so, he would have been perfectly within his rights to insist that you pay the full rent agreed until he either found a replacement tenant or your tenancy agreement expired, whichever came sooner.
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In order to establish what is 'reasonable', you need to understand what the letting agent does.
1. Finds a potentially suitable tenant
2. Carries out reference checks with previous landlords and prospective tenant's bank
3. Carries out credit checks using a credit reference agancy such as Experian
4. Sends the reference reports to the landlord for their approval
5. Collects a holding deposit
6. Crries out an inventory check (if applicable)
7. Collects the balance of the tenancy deposit and first months rent
8. Signs the tenancy agreements
9. Does the 'move in' on the day
In my experience the letting agent will normally charge the landlord roughly the equivalent of one month's rent to carry out the above services.
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Suitable new tenants have indeed been found.
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the landlord needs to recover the cost of finding those suitable tenants.
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I would have preferred the opportunity to relist the property with a suitable agent at a cost I was comfortable with.
I finally spoke to an advisor at Shelter who offered some quality advise on the subject.
Thanks everyone.
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long lost...
if it was a myth and you know the law and the professional advice already, why ask on here ?
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