Deed of surrender

[lostforwords]

Good morning Forum,

I would like to have your opinion, I hope you can help.

I am a tenant, renting in London. The house is pretty big (around 3,500 sqft) and I moved in last august 2011 with a 2 years contract ending, precisely, 25th august 2013.

The rent we pay is quite high (3,400 pounds per month) but the house has, on the paper, the size and all the requirements we need, so we happily signed the contract. Since the day we moved in, we have had huge problems with the quality of the fittings and general state of the house: gas leek the same day of the move, couldn't have hot water for 3 days; water cylinder too small no water enough for all of us (the house has 6 bedrooms and cylinder was for a 2 bedroom flat), the valleys on the roof were old, it was raining in 2 bedrooms, no power shower, heating not working properly...I could go on for ages. It sounds like 10 years of problems but in fact it's just 8 months. Now the last problem is the shower trap broke and I couldn't use the shower for a week and the water was pouring down in the utility room. Landlord always mended everything but she is clearly using our rent to pay for the costs of the repairs. I haven't had a month straight without someone coming over to my premises to mend, adjust, repair, fix something. She is a divorced lady, with an extended family, no children and she rented out the house (which belonged to her deceased parents) as she is waiting to sell it (it is worth around 1,600,000 pounds) once the housing market is healthier.

So getting to the point: I am very tired and fed up of all these inconveniences. I would like to have a house which, for the money I pay, is in great conditions. Is there any way I can surrender the tenancy under these terms?

We have always paid our rents and I am actually in very good terms with my LL. She has never complained about repairing the house and she has always been very respectful of our privacy. She is also very satisfied with the way I am keeping her house (it is the one she has lived in for most of her life). I am only worried of her extended family's reactions (brothers and sisters). I just want to know if, in case she refuses to let me break the agreement earlier, I have a right to win the dispute.

I would like to terminate the contract before Christmas, although it's very difficult to tell which month as I haven't started looking around for properties yet. Last question: do you think is feasible to ask to pay a monthly rent (in advance of course) after the end of the first year contract (august 2012). I have been renting for the past 4 years in England and I have excellent references from previous LLs.

Thank you very much for taking time to read and for any advice you may give.

[raydetinu]

Is there a break clause in the contract? normal I would of thought for a contract for this length of period, just in case things dont work out?

What sort of contract is it?

Anything can be agreed by negotiation, have you discussed your concerns with the LL and a possible reolution, reduction in rent or compnsation for loss of hot water etc.

A large old house does usually take a lot of maintenance.

Did it have/ has it got a gas safe certificate ( rquired by law ) and must be checked annually.

Legally if you have signed a contract the that is it, unless there are options or conditions within it that allow you to break it.

[lostforwords]

Dear Raydetinu, thanks for answering. Getting to your questions:

a) No, there isn't any break clause in the contract.

b) It's a very normal, straight, 2 years letting contract, compiled by an estate agency and signed by us and by the LandLady. The house is unfurnished.

c) So far we have never discussed any compensation for loss of water, privacy etc. We have been very patient.

LL asked me (2 months ago) if I was happy in the house or if I wanted to consider to terminate the contract earlier, but it was a very sudden outburst and I didn't take advantage of the situation as she caught me off guard (it happened during a phone call). She hasn't repeated the offer anymore, probably advised by her family.

d) Yes, the house does need maintenance as it hasn't been refurbished for quite a long time.

e) The gas certificate had been issued by British Gas 3 days before we moved in but, as we had the gas leak the very same day of the move, we called the British Gas emergency which came 2 hours later, sealed the meter, temporarily revoked the permission and 3 days later sent someone to fix it. After this incident our LL signed an agreement with British Gas for emergency and routine maintenance. Since then (8 months ago) gas-wise we have been ok, but we had problems with water.

 

I am not even asking to contribute towards the cost of a new move (although probably someone else would do it). I just want to leave asap when I find something I like, but this cannot happen before october, as I will leave UK for 2 months this summer (hence no time for looking for houses).

My question to the Forum was exactly this one: will I stand any chance to win an eventual dispute (should the LL refuse to close the letting contract earlier), if I claim the fact that I cannot enjoy a peaceful and quite life because this house needs constant and permanent repair?

For the money I pay I would expect not to be disturbed every 10/15 days by a nuisance happening to the house.

 

Thank you for your time.

[raydetinu]

I doubt you could terminate the contract unless by agreement with the LL and possibly pay reletting fees etc.

howver you could sue for compensation due to the faults etc.

Just a question on the actual contract, posting it up may be usefull, was it an AST?

did you pay any deposit and is it protected?

[lostforwords]

Hello Raydetinu,

yes, it is a AST contract. We paid a deposit which is held by the Accounts Department of Thamesview Estate Agent. We paid 1 month and few days ahead plus 1 and half month deposit, plus administration fees, plus Professional check out (which I don't have a clue of what it is).

I don't know how to post it up, nevertheless it is a very simple template AST from the Thamesview Estate Agent, with our (my husband and mine) names and addresses filled in.

 

I will update my husband with your info and point of view and I will try to speak to the LL. It's so frustrating to start looking again for another house, not to mention the fact of another move.

Thank you for your help.

[mariner51]

"The rent we pay is quite high (3,400 pounds per month) but the house has, on the paper, the size and all the requirements we need, so we happily signed the contract. "

Presumably you had opportunity to inspect property before signing?

IMO Gas leak was not LLs fault but failure by B Gas to conduct a proper GSC inspection.

"She has never complained about repairing the house and she has always been very respectful of our privacy"

Most LLs use rent to pay for repairs, inexperieced ones are at mercy of contractors & quotes.

Owner-occupiers also suffer repair delays & inconveneience when things break unexpectedly (shower trap).

There is no dispute to win in Court, unless you have a complete marketing description of property.

During the fixed term, your only recourse is to negotiate a mutual surrender of Lease, which LL is under no obligation to provide, or you could try and find another T, acceptable to LL & subject to refs etc. Your liability would end when new T moved in.

[assisted blonde]

My opinion is that you really have to try and talk to the LL about leaving early, but if she dosnt agree there isnt a lot you can do about it. I think she has been reasonable in carrying out the repairs, and as was previously said if its an older house it will need constant upkeep, if you wanted a house without problems a newer one would have offered a better option but still no guarantee of things not going wrong.

[raydetinu]

The deposit needs to be protected and you should have been notified of the details? as it is an existing contract under the new localism act the LL had until the 6th May 2012 to protect it and notify you. If not protected you can take LL to court now and she could possibly be fined and yourselves compensated by up to 3 times the deposit ( unlikely to be that high as a first offence ).

However you could use this a bargaining chip if not protected.

In a normal AST contract in the notices section there is useually a clause about notice on leaving and a minimum term for the contract; this is sometimes badly worded and can be open to interpretatation. Would be interesting to see what it says!

Did you sign an inventory/condition report at the begining of the contract? doing a proffesional check out is not much use unless there was a record at the begining that you agreed to.

[lostforwords]

Hello everyone. I'll try to answer your questions:

@ Mariner51: we saw the house just once for 10 minutes before renting it. This happened 2 months before moving in. The LL was present and me and my husband were taken around to see the property by the Estate Agent. That was the only time we saw it before renting it/moving in. As we lived in Bath and I had to drive to London to inspect the property, I hadn't many chances to find a suitable time for both us and the LL to get together as she was working and her mother was ill at the hospital. When we saw it, we realised it was an old house but it was well kept (apparently). We couldn't see that the valleys were 20 years old, the shower trap was 25 years old, power-shower didn't exist, the heating didn't work, the electrical system was extremely old, that some plugs were totally out of law (some of them still have "Indian sockets" - don't ask....I don't know anything about it, just the astonished face of a BT engineer who came to connect TV). We just had an idiotic and quite unexperienced estate agent who kept on saying that "all was ok, the LL was quite stubborn, he didn't have a way to persuade her to do the changes we asked for (we asked for some furniture to be taken away) and that our best bet was for them (Estate Agents) to manage the property, once rented (which eventually didn't happen).

@ Assisted blonde: it's true (or sort of) that a new house would be a safer choice, but in London (apart from the centre/city) there isn't an abundance of new houses. It was June, the girls had to start school in 2 months and I couldn't risk to be left without a home. On top we had to stay as close as possible to the school (my kids already have to walk for 30 mins to get to school) AND the letting market has exploded since this new recession, so if you see a property you like, you better secure it asap. It's not an ideal situation I know but, what can I do? So far I tried to keep a good relationship with my LL and I wouldn't like to start arguing with her, in case something goes wrong. I have always had great relationships with my LLs and I don't want to spoil this one. I'll try talking to her in the near future.

@ Raydetinu: I never heard of the notification of the deposit. I'll ask my husband (he's on a business trip now). I just checked again the contract and I found a "Special or Additional Clause (Issue 1): This is a fixed term tenancy for the period specified. There is no priovision for the T or the LL to terminate the agreement before the expiration of the fixed period. In the event that both parties agree to vary this clause the T will reimburse the LL the letting commission (10% of the rent + VAT) from the date of early termination until the date that this contract was originally to expire." What's the meaning of that? Is that normal?

There isn't anything else written about it. In page no.3 Summary of core terms it say: "Initial TERM of the tenancy will be: 24 months."

I did sign an inventory?condition report. It was 72 PAGES LONG!! The Company who did the inventory was brilliant as it described every single mark on walls, ceiling, inside/outside cupboards, wardrobes. I received it 48 hours AFTER I checked in as the Estate Agent didn't "have time" to photocopy it (apparently there was just one original copy provided). I was obviously furious. Nevertheless I was very impressed by the standards of the check. 72 pages on an empty house!

Thank you everyone for your advices. I'll probably try to fix an appointment with my LL next week and I'll let you know what she says. In a way I would be more comfortable if my husband was present, on the other end I know she wouldn't feel at ease, being a single Lady, not married and in her late 60's. I wouldn't want to put her under too much pressure. What do you think? Thanks again

[mariner51]

"In the event that both parties agree to vary this clause the T will reimburse the LL the letting commission (10% of the rent + VAT) from the date of early termination until the date that this contract was originally to expire."

It means if mutual early surrender of T is agreed, the T (you) will have to reimburse LL with LA's commission of 10% + VAT normally payable by LL & deducted from collected rent by LA. With a rent of £3400 pcm month the fees (10%) will be £340pcm

so with 14 months left to end of fixed term you will be required to pay 14 x 340 = £4760 + VAT as a release fee, or about 2 months full rent. Given that there is no mention of additional compensation for LL, or requirement for you to find a new T, it sounds like a good deal for London, as a LL could demand anything up to 14 months full rent for unexpired fixed tern, without any requirement to mitigate his losses ie find a new T within 14 months.

I doubt the LL will benefit from this payment.

[raydetinu]

If there is any indication of unsafe electrics then this shoild be addressed by the LL, and if not you could report to the council for assessment.

Negotiation would seem to be the only way forward.

However if you are determined to move then your Liability would appear to be as outlined by M51.

[lostforwords]

Hello. Sorry I couldn't reply earlier.

@Mariner51: I do have also the clause about finding a new tenant. I didn't mention it because someone else mentioned it before as a fix clause, so I gave it for granted. You are right also that the LL will not benefit from the payment of the 10% to the Estate Agency. In fact, checking with them, they told me that in the event she "closed" the contract she is the one who should pay it to them. I only found it very strange as they are not managing the property on her behalf and they are also getting the interests from the deposit we paid at the beginning of the tenancy. In a way or another I think I am stuck. with this property at least until december. Then I could try to put in my "budget" the 8 months left within the price of my next move.

@Raydetinu: I must say I have been very naive about these plugs. In fact when I asked the Estate Agent he moved the conversation away with an excuse and pointed out there were many other "normal" plugs in the house, so I shouldn't have had any problem with that. As I said, I moved in the property the 25th of august, 3 days later my children started school and we didn't have hot water and electrici for 3 days so the problem of the weird plugs was a "joke" in that moment.

 

Anyway, thank you for your advice. I really appreciate it. I'll discuss this information with my husband and we will see how we can progress with the negotiation. I will keep you updated. Thanks again.

[raydetinu]

Why is the agent getting interest on the deposit? if it is paid into or insured by a scheme, which you should be notified of the details when you paid it.

Or notified, under the current legislatio, by the 6th May 2012 if it was not protected before then.

The agent and the LL have a duty of care to tenants regarding the electrical safety and the agent should be advising the LL to get it checked out.

If in any doubt about safety on the electrics put it writing/email to the Agent/LL and ask for it to be checked, detailing your reasons for the request.

Contact the council if you are really worried ( electrical problems can lead to fires ).

Also just to confirm that you now have a signed gas safe cerificate for the property?

[mariner51]

DPS do not pay interest on deposits and insurance based schemes the premium is prob more than any interest earned

[lostforwords]

@ Raydetinu: you are right there's no interest on the deposit. I just read the clause "in case I disappear and they can't give me back my deposit" which, hopefully, it won't happen.

And yes, of course I have a signed gas safe certificate for the property. When British Gas came they cancelled the previous one (in fact there was a big argument which went on for 2 days between some British gas engineers, juggling with the responsibility of "who signed what") and re-issued a new one. LL was very worried because the first month of rent was still in the hands of the Estate Agency and not released until the house was declared "safe".

About electricity, as I said, everyone who inspected the house simply said to "ignore" the other sockets and use the UK ones, which of course we did (given also the fact that we don't have any Indian plug!!!). The whole electrical system is old, quite old. The LL's family lived in the house for more than 70 years. They did some maintenance but just the very essential one, which means whenever something broke they repaired it (precisely as it's happening now). No full, proper checks ahead. I don't think it will explode tomorrow and it's ok I suppose. Nevertheless it's not nice, when I touch some wall mounted switches in the house, to feel them "vibrating". I am not in love with this, nor used to. I told the LL about it and she "laughed" saying that all is good and she lived in this house since she was born and nothing ever happened etc etc.

 

Hopefully this weekend I will have some time to discuss with my husband every piece of info I got from you all and we will try to decide which is our best way out. Thank you again.

[raydetinu]

Old wiring equals fire risk and possible death due to inadequte earthing. Get it checked, speak to LL or council and get it checked now!

The LL has a duty of care.

This alone will allow you to break contract if unsafe.

[charles dyer]

Hii,

 

Have you discussed your problems with the landlord?

Please try to negotiate with LL and ask him to reduce the rent.

Also ask for compensation for the loss which u got.

Tell him that maintenance of such a big house is not a easy task.

Use ur legal rights to solve these issues.

 

For further query , feel free to ask.

 

Many Thanks.