URGENT PLEASE????? Can I terminate a tenancy agreement before I move in ?

[Spiros]

Hi

 

I applied to rent a property but failed on income threshold, my brother offered to stand guaranty ur, but he failed due to low income. they said I could pay the 6 months rent up from plus 2 months deposit. I agreed and signed the contract today, they money was going to be sent to me my my ex husband , but has now backed out. I have not paid anything to the agency. How do I stand with the contract. Will my brother be in trouble and will I be taken to court , I do not have this money. Please help. I am supposed to move in on monday

[Conniff]

I don't see there is much he can do. A deposit is an assurance against having to repair or replace things at the end of the tenancy so he hasn't actually lost anything.

If it is a half decent place with a fair rent then he won't have any trouble letting it.

 

Just tell him what happened and that you cannot afford it any longer

[Spiros]

thanks for you reply. i have not paid any deposit. i have read some articles and they stated that i would be liable to pay forthe term of 6 months

[Lea_HTH]

You're not likely to get away with paying nothing. All the time they have been holding the property for you, on the expectation that you'd be moving in on Monday, they have been losing money by not advertising for a tenant that can afford to pay. So, whilst they have to mitigate their own losses by putting the property back on the market as soon as you tell them (so tell them sooner rather than later), they can still claim any losses from Monday until they get a tenant in to take your place.

 

In theory they could sue for the full six months, but as I said, they have to mitigate their losses, so the sooner they rent the property the less they'll claim from you. You might be better off negotiating with them and explaining your lack of funds.

[Spiros]

Thank you for your time, they were only holding the propert for 2 days, it was a new listing. How much do you think I will have to pay.

 

 

 

 

You're not likely to get away with paying nothing. All the time they have been holding the property for you, on the expectation that you'd be moving in on Monday, they have been losing money by not advertising for a tenant that can afford to pay. So, whilst they have to mitigate their own losses by putting the property back on the market as soon as you tell them (so tell them sooner rather than later), they can still claim any losses from Monday until they get a tenant in to take your place.

 

In theory they could sue for the full six months, but as I said, they have to mitigate their losses, so the sooner they rent the property the less they'll claim from you. You might be better off negotiating with them and explaining your lack of funds.

[Spiros]

Thank you for your time, they were only holding the propert for 2 days, it was a new listing. How much do you think I will have to pay.

 

Sorry for further post, the property is still advertised.

[Spiros]

I also did not receive a copy of the contract

[mariner51]

I assume the tenancy agreement you signed was for a standard residential assured shorthold tenancy of min 6 month fixed term?

AFAIK the terms of the AST contract do not apply until the due move in date (Mon?) or when you received the keys and moved in self or personal contents (occupied), if earlier. So not liable for min 6 month term or AST Notice requirements.

However, there is clear evidence of a separate agreed Contract to supply & occupy, which is subject to Contract Law, and the aggrieved Party can claim compensation for the other's Breach of Contract, provided they mitigate their loss.

 

It will take LL 1-2 months to advertise (additional cost), vet new prospect (cost) and 1 month for new T to give due Notice to current LL, so I suggest reasonable LL compensation would equate to min 1 month rent.

You need to negotiate reasonable compensation, acceptable to you, with the LL, after explaining your reasons for withdrawing.

Consider how you would feel if LL had withdrawn 3 days before move in.

 

Tenancy contracts are not governed by normal Consumer legislation eg cooling off periods. The rule is do not sign any Contract until you are certain.

Edited August 31, 2013 by mariner51