Tenancy Renewal Fee

[heybankrobber]

Hi,

 

I wonder if someone can give me some help.

 

At the end of January 2009 my wife and I moved into a house that was let to us by a local estate agent. We renewed the tenancy after the first and second years without any problems. The local company was then taken over by Leaders but to all intents and purposes nothing changed for us and things are still run from the same local office.

 

As the renewal date approaches again we have been informed that the rent will be going up £25 a month (not that unreasonable as we enter our 3rd agreement) but we will now have to pay £60 to renew our tenancy.

 

This seems unreasonable to me and I just wondered where we stand on refusing to pay this? Can the company introduce a charge that hasn't been there previously?

 

Any help much appreciated.

[mariner51]

Yes they can, provide cost is notified in advance so you can choose to renew or not.

However, you don't have to sign new Agreement, you can allow current AST to go periodic at end of fixed term by remaining in property after end of fixed term (see AST) with same terms & conditions. LA cannot charge a signing or renewal fee for a Statutory Periodic Tenancy, though LL will prob issue a s13 notice to increase rent by £25.

If you are happy and LL is happy, there should be no problem. LA works for LL but I doubt LL will see the £60, is he even aware it is being levied?

[Steve__M]

Additionally agent may well be charging landlord as well for the renewal!

[heybankrobber]

Thanks for the advice mariner, it is certaily something to think about.

 

And Steve_M, I have no doubt they are!

 

Thanks guys.