NoHPCinTheUK Posted July 22, 2023 Share Posted July 22, 2023 (edited) Just got the news that a couple of friends are now looking for a new rental property. The area is Notting Hill. They were paying 2k pm and they fixed to contract for 4 years. With two years left on the contract their landlord is offering them 5k and relocation costs to vacate the property as he needs to put the flat back on the market at a higher price. They told me the landlord purchased another flat in the same block and the did the same with the other tenants. They vacated 4 months ago and the flat is on the market for 3500. Empty. So they expect he will try the same route. I told them to stay until the end of the contract and enjoy his bleeding. Edited July 22, 2023 by NoHPCinTheUK Quote Link to comment Share on other sites More sharing options...
Nomadd Posted July 22, 2023 Share Posted July 22, 2023 Yep, happened last month to my niece. Quote Link to comment Share on other sites More sharing options...
Ballyk Posted July 22, 2023 Share Posted July 22, 2023 Is it normal to have such a large rental contract? I've never heard of such a long private rental contract without some kind of break in it. Quote Link to comment Share on other sites More sharing options...
The Angry Capitalist Posted July 23, 2023 Share Posted July 23, 2023 6 hours ago, NoHPCinTheUK said: Just got the news that a couple of friends are now looking for a new rental property. The area is Notting Hill. They were paying 2k pm and they fixed to contract for 4 years. With two years left on the contract their landlord is offering them 5k and relocation costs to vacate the property as he needs to put the flat back on the market at a higher price. They told me the landlord purchased another flat in the same block and the did the same with the other tenants. They vacated 4 months ago and the flat is on the market for 3500. Empty. So they expect he will try the same route. I told them to stay until the end of the contract and enjoy his bleeding. Interesting story. I would ask for more. Maybe 10k and would accept. However, what are the circumstances? Will they still want to live in Notting Hill? Presume they would not be able to find anything close to what they are paying now in their current rental property? If they can practically move to another area of London and pay the same rate of rent and keep the cash payment then that would be a good sensible deal. But what are their financial positions? If they already have a bit of money in their pockets and earn good salaries then why move? 5k in today's money is chump change. The way things are going you won't be able to buy a decent suit for that money soon. So maybe best to just stay put and live in a decent area paying way below the market rate for the next 2 years and enjoy their tenancy. In 2 years they might even be able to renew at a lower rate than what they are paying now too. Also, they get to shaft the landlord in the process who appears to be trying to exploit a current shortage of rental properties on the market in London. Tough call!!! Quote Link to comment Share on other sites More sharing options...
The Angry Capitalist Posted July 23, 2023 Share Posted July 23, 2023 5 hours ago, Ballyk said: Is it normal to have such a large rental contract? I've never heard of such a long private rental contract without some kind of break in it. Probably not normal but it does happen. Sometimes it's better for both the landlord and tenant to secure long term rental contract. Standard tenancies are only 6 months and the landlord can get rid so if you find a property that's nice and at a good price then why not secure a long term let as a tenant? Quote Link to comment Share on other sites More sharing options...
winkie Posted July 23, 2023 Share Posted July 23, 2023 3 hours ago, The Angry Capitalist said: Interesting story. If they already have a bit of money in their pockets and earn good salaries then why move? 5k in today's money is chump change. The way things are going you won't be able to buy a decent suit for that money soon. So maybe best to just stay put and live in a decent area paying way below the market rate for the next 2 years and enjoy their tenancy. Tough call!!! £5k chump change......not in my world. Don't pay a penny more in rent, get out of that extortionate wage grabber and find something for miles better value.....easy come easy go. Who in their right mind would pay that sum in rent every month for four walls when at work most of the time anyway... Not a tough call!! a very easy call......make your hard earned money work a lot better for you...like high rents, high wages don't last forever. Quote Link to comment Share on other sites More sharing options...
The Angry Capitalist Posted July 23, 2023 Share Posted July 23, 2023 16 minutes ago, winkie said: £5k chump change......not in my world. Don't pay a penny more in rent, get out of that extortionate wage grabber and find something for miles better value.....easy come easy go. Who in their right mind would pay that sum in rent every month for four walls when at work most of the time anyway... Not a tough call!! a very easy call......make your hard earned money work a lot better for you...like high rents, high wages don't last forever. Not in my world, either. Was making a point of the government and banks creating new currency and lowering interest over the last 20 years. Quote Link to comment Share on other sites More sharing options...
70PC Posted July 23, 2023 Share Posted July 23, 2023 9 hours ago, NoHPCinTheUK said: Just got the news that a couple of friends are now looking for a new rental property. The area is Notting Hill. They were paying 2k pm and they fixed to contract for 4 years. With two years left on the contract their landlord is offering them 5k and relocation costs to vacate the property as he needs to put the flat back on the market at a higher price. They told me the landlord purchased another flat in the same block and the did the same with the other tenants. They vacated 4 months ago and the flat is on the market for 3500. Empty. So they expect he will try the same route. I told them to stay until the end of the contract and enjoy his bleeding. Good advice but alternatively: (years on the contract) x (0.75) x (£18,000) So if there are 3 years left on the contract, the landlord will make more money and he pays the tenants £40,500 to vacate. Quote Link to comment Share on other sites More sharing options...
winkie Posted July 23, 2023 Share Posted July 23, 2023 23 minutes ago, The Angry Capitalist said: Not in my world, either. Was making a point of the government and banks creating new currency and lowering interest over the last 20 years. Just a devaluation of old money, making it worth a lot less. Quote Link to comment Share on other sites More sharing options...
24gray24 Posted July 23, 2023 Share Posted July 23, 2023 It's a suckers offer. To take £5k and walk into a rental price bubble. Just so landlord can sell at peak prices. Let's be real here: the landlord insisted on a 4 year term. That's because 2 years ago, in covid, he thought it would be clever to trap tenants into paying for 4 years. So he insisted on it at the time. Now 2 years later, he's the one in the trap. And suddenly he wants to change his own lock in agreement. For £5k. He really does think tenants are worthless fools doesn't he. But from the tenants' point of view, in 2 years time, this rental bubble will have collapsed, along with house prices. So they should indeed say no thanks, and remind him they've got quiet enjoyment (ie not being pestered by him) for 2 years. After which, a whole new world of cheaper house prices beckons (and he's taken a thumping loss. And all because he insisted on a 4 year term ...) It was business when he did it. And it's also business when it doesn't work out. Quote Link to comment Share on other sites More sharing options...
wighty Posted July 23, 2023 Share Posted July 23, 2023 59 minutes ago, 70PC said: Good advice but alternatively: (years on the contract) x (0.75) x (£18,000) So if there are 3 years left on the contract, the landlord will make more money and he pays the tenants £40,500 to vacate. LL needs to factor in risk of voids and bad tenants. Quote Link to comment Share on other sites More sharing options...
nero120 Posted July 23, 2023 Share Posted July 23, 2023 "No thanks, now don't bother us for another two years" Quote Link to comment Share on other sites More sharing options...
70PC Posted July 23, 2023 Share Posted July 23, 2023 5 minutes ago, wighty said: LL needs to factor in risk of voids and bad tenants. Fair comment. £35k, last offer. Quote Link to comment Share on other sites More sharing options...
Trampa501 Posted July 23, 2023 Share Posted July 23, 2023 (edited) 2 hours ago, winkie said: £5k chump change......not in my world. Don't pay a penny more in rent, get out of that extortionate wage grabber and find something for miles better value.....easy come easy go. Who in their right mind would pay that sum in rent every month for four walls when at work most of the time anyway... Not a tough call!! a very easy call......make your hard earned money work a lot better for you...like high rents, high wages don't last forever. Agreed. Take the opportunity to get out of crazyland (even if it means a longer commute), maybe move to the south coast, pay 8-900 a month. Give yourself a better quality of life with the saved rent. Easy enough to travel into London if you need a theatre fix or shopping expedition. Edited July 23, 2023 by Trampa501 Quote Link to comment Share on other sites More sharing options...
hotblack42 Posted July 23, 2023 Share Posted July 23, 2023 (edited) £24k, then agree £19k which the thick LL will perceive as much lower than £20k. Then move out to zone 4/5 & tell employer you ain't coming into the office every day if have that kind of job. If not change to a hybrid job. Jobs where 5 days onsite are actually necessary should be paying big bucks in the new normal. Or stay put. Edited July 23, 2023 by hotblack42 Quote Link to comment Share on other sites More sharing options...
Frankie Teardrop Posted July 23, 2023 Share Posted July 23, 2023 Stay put, then sub-let 😉 Quote Link to comment Share on other sites More sharing options...
Trampa501 Posted July 23, 2023 Share Posted July 23, 2023 7 hours ago, Frankie Teardrop said: Stay put, then sub-let 😉 All very well, and we're all aware this goes on, but if you breach your rental agreement in this way can't the landlord then take measures to repossess? Quote Link to comment Share on other sites More sharing options...
Si1 Posted July 23, 2023 Share Posted July 23, 2023 3 minutes ago, Trampa501 said: All very well, and we're all aware this goes on, but if you breach your rental agreement in this way can't the landlord then take measures to repossess? Yeah. But proceedings can drag. Quote Link to comment Share on other sites More sharing options...
24gray24 Posted July 23, 2023 Share Posted July 23, 2023 Silly advice to sub let. Just live in it. Quote Link to comment Share on other sites More sharing options...
Notting Hell Posted July 23, 2023 Share Posted July 23, 2023 17 hours ago, The Angry Capitalist said: Standard tenancies are only 6 months and the landlord can get rid so if you find a property that's nice and at a good price then why not secure a long term let as a tenant? Aren't standard tenancies normally asymmetric? Normally there is a break-clause to enable the tenant to serve 1 month notice after 6 months, so they have an effective minimum tenancy of 7 months. Whereas the landlord can only serve notice by the 12th month. So the asymmetry is normally Tenant minimum term = 7 month Landlord minimum term = 12 month. (The way the tenancy agreements are worded is such that a "6 month break clause" really means 7 month total tenancy as you have to give notice as described above). The tenant should ask for probably more like £45/50k to leave. Present value of future payments + moving costs + compensation for hassle. Quote Link to comment Share on other sites More sharing options...
Badhairday Posted July 23, 2023 Share Posted July 23, 2023 17 hours ago, The Angry Capitalist said: Probably not normal but it does happen. Sometimes it's better for both the landlord and tenant to secure long term rental contract. Standard tenancies are only 6 months and the landlord can get rid so if you find a property that's nice and at a good price then why not secure a long term let as a tenant? Its not really long term anyway... I imagine there is a break clause anyway. Quote Link to comment Share on other sites More sharing options...
lastlaugh Posted July 24, 2023 Share Posted July 24, 2023 On 23/07/2023 at 00:38, Ballyk said: Is it normal to have such a large rental contract? I've never heard of such a long private rental contract without some kind of break in it. I haven’t started a new tenancy with a contract less than 2 years in the last 25 years. It takes a bit of effort sniffing out the landlords who value stability with a reliable tenant, and are happy to negotiate the contract to achieve it. But it’s always possible. To the OP, your friends should stay and enjoy living in Notting Hill at the rent they agreed. Quote Link to comment Share on other sites More sharing options...
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