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Lee Harvey Oswald

Contract Renewal - What Would You Do?

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Hi,

We are in a rather unusual situation, in that our landlady is leaving it up to us as to what rental increase we should be paying this year.

Background is that we have been renting this property for just over 12 months. It is a huge detached property (5 beds, 4 full bathrooms, 3 receptions, conservatory, good sized garden), in a commuter town (30 minutes to London). In my opinion we got the property for a song last year, as we are only paying 1400 pcm.

Alhough we have been looking at properties to buy, nothing comes anywhere near the property that we rent, and so we are happy to stay as long as possible. We also believe that property is overvalued, and hence are expecting a correction at some point.

The landlady visited last night, with revised pages for the contract, amending the duration of the lease, and the amount of rent. She is leaving it to us to fill in the blanks for these fields. While we could be cheeky and continue to rent at 1400, I would like to remain on good terms with the landlady, as we like the house and might even be tempted to buy it one day (on this subject, I asked her intentions last night; she said that she will sell it one day as it is far too big for her and hence she has no intention of ever moving back in; but she does not intend to sell just yet, as she is happy with the current arrangement).

My questions therefore are:

1. What rental would you put in the box, and why. (I am erring towards 1440 based upon official inflation figures, I am even tempted to round up to 1450).

2. What period would you be willing to sign up to? 12 months seems an obvious choice, I am wondering though if there is any merit in a longer lease. Any thoughts/comments in relation to this would be welcomed.

Look forward to advice.

Thanks in advance.

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Hi,

We are in a rather unusual situation, in that our landlady is leaving it up to us as to what rental increase we should be paying this year.

Background is that we have been renting this property for just over 12 months. It is a huge detached property (5 beds, 4 full bathrooms, 3 receptions, conservatory, good sized garden), in a commuter town (30 minutes to London). In my opinion we got the property for a song last year, as we are only paying 1400 pcm.

Alhough we have been looking at properties to buy, nothing comes anywhere near the property that we rent, and so we are happy to stay as long as possible. We also believe that property is overvalued, and hence are expecting a correction at some point.

The landlady visited last night, with revised pages for the contract, amending the duration of the lease, and the amount of rent. She is leaving it to us to fill in the blanks for these fields. While we could be cheeky and continue to rent at 1400, I would like to remain on good terms with the landlady, as we like the house and might even be tempted to buy it one day (on this subject, I asked her intentions last night; she said that she will sell it one day as it is far too big for her and hence she has no intention of ever moving back in; but she does not intend to sell just yet, as she is happy with the current arrangement).

My questions therefore are:

1. What rental would you put in the box, and why. (I am erring towards 1440 based upon official inflation figures, I am even tempted to round up to 1450).

2. What period would you be willing to sign up to? 12 months seems an obvious choice, I am wondering though if there is any merit in a longer lease. Any thoughts/comments in relation to this would be welcomed.

Look forward to advice.

Thanks in advance.

Finding a nice 5 bed house with a good landlord who is willing to rent to you long term that close to London is like gold dust if you are a tenant. I know from personal experience that this is very hard to come by.

Sounds like you already know that a similar house in the same area on the open rental market woudl go for a lot more. I would suggest going for an extra £100 p.c.m if she will guarantee you another year at least. Although this is a 7.1% rise it may well be that the LL is living on the rental income and as many people have spoken about many times on HPC before her personal rate of inflation is probably nearer 7.0%. Giving her a £100 rise is the best way you keep her happy and you get to keep a great LL and a great house for way less than market rent. Sounds like a hell of a deal to me.

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Finding a nice 5 bed house with a good landlord who is willing to rent to you long term that close to London is like gold dust if you are a tenant. I know from personal experience that this is very hard to come by.

Sounds like you already know that a similar house in the same area on the open rental market woudl go for a lot more. I would suggest going for an extra £100 p.c.m if she will guarantee you another year at least. Although this is a 7.1% rise it may well be that the LL is living on the rental income and as many people have spoken about many times on HPC before her personal rate of inflation is probably nearer 7.0%. Giving her a £100 rise is the best way you keep her happy and you get to keep a great LL and a great house for way less than market rent. Sounds like a hell of a deal to me.

I fully agree with the last post. YOu have the best deal I have ever heard of!! that close to London, big house and obviosuly a cracker of a land lady.

I would keep her onside and I think the £100 is a good amount to do that.

Risks;

is it too good to be true? Sorry to be cynical, but is she making sure you sign the new lease (by being so cool about the rent) in order to get you to sign it and the hit you with some bad news?

If you go for £100 increase, whatever that % increase is now, will set a precedent for the future should you wish to sign another extention in the future.

You said she had some new pages for the lease, best check these don't have any amendments beyond dates and prices.

good luck!

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Hi,

We are in a rather unusual situation, in that our landlady is leaving it up to us as to what rental increase we should be paying this year.

Background is that we have been renting this property for just over 12 months. It is a huge detached property (5 beds, 4 full bathrooms, 3 receptions, conservatory, good sized garden), in a commuter town (30 minutes to London). In my opinion we got the property for a song last year, as we are only paying 1400 pcm.

Alhough we have been looking at properties to buy, nothing comes anywhere near the property that we rent, and so we are happy to stay as long as possible. We also believe that property is overvalued, and hence are expecting a correction at some point.

The landlady visited last night, with revised pages for the contract, amending the duration of the lease, and the amount of rent. She is leaving it to us to fill in the blanks for these fields. While we could be cheeky and continue to rent at 1400, I would like to remain on good terms with the landlady, as we like the house and might even be tempted to buy it one day (on this subject, I asked her intentions last night; she said that she will sell it one day as it is far too big for her and hence she has no intention of ever moving back in; but she does not intend to sell just yet, as she is happy with the current arrangement).

My questions therefore are:

1. What rental would you put in the box, and why. (I am erring towards 1440 based upon official inflation figures, I am even tempted to round up to 1450).

2. What period would you be willing to sign up to? 12 months seems an obvious choice, I am wondering though if there is any merit in a longer lease. Any thoughts/comments in relation to this would be welcomed.

Look forward to advice.

Thanks in advance.

Sounds like you have a decent landlady. Make a sensible assessment of the market and make a sensible suggestion that you can live with and she will be happy with.

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Many thanks for the feedback received. Just a quick line to let you know that we increased the rent by £50 pcm, ie just above inflation.

Having spoken with the landlady several times, it was clear that she was happy to just keep us there, and that money was not a big factor. She also owns a shop which is losing its tenant soon, and she has a flat that is currently occupied, but had a lengthy void last year.

We decided to go for 24 months in the end, as that gives us increased security. Next summer we won't have the worries of whether or not we will have to move. If we do decide that we want to get out of it early, I am sure that we will be able to come to some sort of compromise, although it might cost us extra money.

We did talk about the possibility of us buying the house at some stage. She didn't really have any idea of what sort of price that she might want, but she has arranged for 3 valuations to take place this week. Does any one have any thoughts as to how we should handle these valuations? ie should we try not to have the house too tidy? Should we let on to the EA that we have two years left on the lease? Any advice would be gratefuly received.

Thanks again for all of the input to date.

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Many thanks for the feedback received. Just a quick line to let you know that we increased the rent by £50 pcm, ie just above inflation.

Having spoken with the landlady several times, it was clear that she was happy to just keep us there, and that money was not a big factor. She also owns a shop which is losing its tenant soon, and she has a flat that is currently occupied, but had a lengthy void last year.

We decided to go for 24 months in the end, as that gives us increased security. Next summer we won't have the worries of whether or not we will have to move. If we do decide that we want to get out of it early, I am sure that we will be able to come to some sort of compromise, although it might cost us extra money.

We did talk about the possibility of us buying the house at some stage. She didn't really have any idea of what sort of price that she might want, but she has arranged for 3 valuations to take place this week. Does any one have any thoughts as to how we should handle these valuations? ie should we try not to have the house too tidy? Should we let on to the EA that we have two years left on the lease? Any advice would be gratefuly received.

Thanks again for all of the input to date.

What town/area is it?

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