Renewal Fees

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    Renewal Fees

    I signed an AST over 3 years ago for a 6 month let.Since then I have had only two renewals signed despite repeated reminders to my lettings agent. As we haven't signed a contract , i believe the tenancy is now a SPT.

    Am i still liable to pay the lettings agent's demand to pay the renewal fee , despite him never actually renewing the contract?

    #2
    Originally posted by humbyl View Post
    My agent wants me to pay fees even though my tenant has not agreed a new fixed term contract and has gone onto a statutory periodic rolling contract. I have looked at the agreement I have with the agents and it states "If a tenancy should extend for a second and or subsequent term then the Introduction Service Fee will become payable and due at the commencement of the second and subsequent term at a reduced rate of 7.5% of the then annual Rent plus VAT at the prevailing rate." I guess it depends on how you define "term" but it doesn't say "fixed term", which is what would be determined if a new contract were signed. Is it therefore lawful and /or reasonable for them to request these fees?
    My contract with the Agent states

    " Where any tenancy of a period of six months or more (whether or not negotiated by us) is extended or
    renewed by contract or just by occupation with all, some or one of the original tenants then the extra
    tenancy rental income will attract a fee of 10% of the total rent on the first renewal and any
    subsequent renewal."

    I haven't signed a new contract for over a year and a half , am i still liable to pay the renewal fees.

    Comment


      #3
      Presume you are tenant: No, you are not liable (except see below.,.**) and it is an SPT...

      ** However if say you were sent a new contract (email say..) which had significant changes - rent goes up for example - and you then started paying that new rent then think judge would conclude you'd agreed to a new contract.

      A rental contract in England & Wales does not have to be written if less than 3 years...

      And welcome to LLZ...
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


        #4
        Post #2 was moved from http://www.landlordzone.co.uk/forums...hread.php?7712 to this thread.
        I also post as Mars_Mug when not moderating

        Comment


          #5
          theartfullodger,

          Many thanks for your prompt reply - I am the landlord. As this has now turned into a SPT(?) and my tenant refuses to sign a new contract am i still obligated to pay the agent for basically not doing anything for the last 2 years , Despite repeatedly asking him to renew the contract and inspect the property.

          Will i have a leg to stand upon if i challenge his contract terms as Unfair and unreasonable.Especially , as i have paid his invoices for the two times he did get the tenant to sign a new contract ( after much prodding naturally).

          Comment


            #6
            I think you have a good chance of having the fees you paid for the last two "renewals" reimbursed if the agent did nothing to effect a new AST at each renerwal, let alone rejecting any demands for the current situation. Follow all the threads in the OFT v Foxtons case which covers this very subject and there are plenty to look at. Use the search facility.
            The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

            Comment


              #7
              Yes as above. However if the agent had renewed the ast for you then they can still charge you for their work. But not as much they charged you in the beggining for finding the tenants etc.

              Send a strongly worded letter to your estate agent demanding your money back if you have overpaid. Also if they are demanding renewal fees for not doing any work then you can safely ignore as they will not take you to court.

              Comment


                #8
                Originally posted by mrcid View Post
                Yes as above. However if the agent had renewed the AST for you then they can still charge you for their work, but not as much as they charged you in the beginning for finding the tenants etc.(edited)
                Unfortunately they can if it is in the terms of business.
                The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

                Comment

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