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zafonic

Extension Agreement

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I am a tenant.

Our 6 months cotract for our bungalow is running out and the letting agents want to charge us £59 for an extension document. Has anyone ever heard of this? I suspect it should be the landord who is charged....

?

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I am a tenant.

Our 6 months cotract for our bungalow is running out and the letting agents want to charge us £59 for an extension document. Has anyone ever heard of this? I suspect it should be the landord who is charged....

?

Some letting agents do charge for a further AST. If you want the security of an additional 6 months term then it looks like its going to cost you £59. Alternativley theres no requirement for you to sign a further agreement, the one you have now will then become a periodic tenancy which will role on from month to month. You will be required to give one full month notice if you want to leave and the landlord/letting agents 2 months notice if they want you to leave (depending on if you signed a section 21 at the start).

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I am a tenant.

Our 6 months cotract for our bungalow is running out and the letting agents want to charge us £59 for an extension document. Has anyone ever heard of this? I suspect it should be the landord who is charged....

?

Oh yes. They tried this with us about 3 months ago. We just neglected to pay it....and the EA is too disorganised to realise that we didn't pay. Is a bit rich for printing out a standard form if you ask me...

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Oh yes. They tried this with us about 3 months ago. We just neglected to pay it....and the EA is too disorganised to realise that we didn't pay. Is a bit rich for printing out a standard form if you ask me...

My letting agent is trying it on, too:

If you wish to extend your Tenancy

(Please delete as applicable)

[ ] I/We wish to extend the Tenancy for 6 / 12 months.

[ ] I/We would like a "release clause" included as an addendum to the contract (this enables the Tenant to give one month's notice and the Landlord to give two months notice from a rental due date during the extension period)

Should your landlord agree to an extension we will prepare a Supplemental Tenancy Agreement. The fee of £58.75 (£50 + VAT) is due upon the signing of the Supplemental Agreement.

It's not clear to me whether I can only tick the second box, thereby (hopefully) evading a repeat charge 6 or 12 months down the line, but either way I see no reason to sign paperwork outlining rights already described by a Statutory Period Tenancy.

The LA do have a possible get-out clause in their Personal Tenancy Application (which I signed):

... Should my tenancy be extended there will be a further administration charge of £50 plus VAT...

... The Security Deposit lodged with Principals [another name for Leaders] as agents for the Landlord, for the duration of the Tenancy (and any period of extension) will be returned to me as soon as reasonably possible after the end of the Tenancy, less any amounts due to the Landlord pursuant to the terms and conditions of the Tenancy Agreement and any amounts due to Principals to cover their costs in event of my breaking the terms and conditions of the Tenancy Agreement.

Since the LA is holding the deposit, they hold some of the cards. In my view, allowing an AST to revert to a periodic tenancy requires no paperwork, no charges, and isn't an "extension" -- at least in the terms laid out by the first quoted letter. I can't see that I'm breaching any condition of the Tenancy Agreement (as opposed to the Personal Tenancy Application), and in any case they could claim this fee at most once.

I've spoken to the LL, and he's in agreement that I can stay on (he'd like to dump the LA, as he's still paying yearly fees, though they only provided an initial introduction, but he's worried about possible legal action). I fully intend to lie low and refuse to sign if challenged. I can't see how the LA can make me sign new paperwork without threatening a Section 21, and that'll never fly with the LL.

What do you guys think? Is lack of response a tactical error? Am I right (legally or morally) to try to evade this charge?

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They can charge you anything they want provided they are clear on the facts up front. I've always had to pay the contract fee. Don't sign if you don't want to.

And you cannot force them to leave the contract off so that it lapses into a periodic tenancy. Once again, it has to be mutually decided.

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They can charge you anything they want provided they are clear on the facts up front. I've always had to pay the contract fee. Don't sign if you don't want to.

And you cannot force them to leave the contract off so that it lapses into a periodic tenancy. Once again, it has to be mutually decided.

Legally an AST automatically becomes periodic after the fixed period (usually 6 months), unless notice is already served (do check this). Neither you or the agent or LL have to do anything for it to become periodic. If anyone says anything else, it's rubbish.

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