Tenancy renewal fee

[raiUK]

Hi, I am new on this forum.

 

I recently received a letter from the letting agency that my tenancy expires end of April and if I wish to extent the contract. If I ant to do so they refer to the extra clause I signed that I need to pay a renewal feel of one weeks rent + VAT which is 178.50. As this is my first tenancy contract since I moved to the UK, I realize I have over looked this bit and signed for it.

 

I guess I cannot do anything about this as I need to pay this before the arrange the new contract. What if I don't pay it and just ignore the letter. Can they throw me out? what are my rights? and are there guide lines for charging renewal fees? They don't even manage the property anymore, I pay the rent directly to the landlord, if i have problems in the house I call him, the only thing they do is setting up a new contract. It's insane!

 

Attached to the letter there is the renewal form and there is something that is a bit odd. They say:

 

please tick:

 

1.

I would like to renew the current tenancy (subject to my Landlords approval) Any extension of my current tenancy contract may be subject to a rent review

 

2. Payment will be made by bank transfer for 178.50 This covers the cost of admin and is payable in accordance with clause 13 of my tenancy agreement.

 

3. I do not wish to renew the current tenancy and will be vacating on ....

 

to me this looks odd as it sounds like i have to tick one of the boxes i want. so if i choose the first, it looks to me i can just renew without paying. Anyone thoughts on this?

Edited February 10, 2012 by raiUK

[nohope]

I no letting agencys are charging up to £60 every 6 months to re-new tenancys but charging a weeks rent to me seems well over the top.

Is the clause you refere to in your tenancy that you have or was it something seperate that you signed?

[raiUK]

yes the clause is in my original contract unfortunately. I had a contract for one year

Edited February 10, 2012 by raiUK

[mariner51]

Is your LL aware of this clause? What does he think of it? Is he happy with you? I doubt he will see any of the £178.50 + VAT.

[raiUK]

Is your LL aware of this clause? What does he think of it? Is he happy with you? I doubt he will see any of the £178.50 + VAT.

 

I am not sure to be honest, I just received the letter today. I am on good terms with him, never had any problems, always paid the rent on time. It might be a good idea to speak with him but can he do something about this as this comes directly from the agency of course.

[The Carpet Cleaners]

Yes he can..... Your contract is actually with the LL..... and not the agency...

The agency cannot send you a section 21 off their own backs.

 

It is the LL who has the contract with the agency.

 

So if you agree with the LL that you don't have to pay this, get it in writing, and then just carry on as you are...

[R J Dearden]

You could just request for the tenancy to fall into a statutory periodic tenancy or month to month notice - this happens automatically under law following the end of a fixed term AST and does not need expensive contract extensions to confirm it.

[nohope]

Most agencys now want to re-new a tenancy every 6 months for a new one so they can charge there little fee and make some extra money.