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Ash
Ash, Solicitor
Category: Law
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Experience:  Solicitor with 5+ years experience
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My daughter and her partner moved into a rental property on

Resolved Question:

My daughter and her partner moved into a rental property on a six month tenancy agreement which will run out on 8th January 2016, they paid six months in advance as the letting agents knew they would fail a credit check as they had been out of the country for a year. My daughter was just about to take up a new job ( she is a Dr in the scientific sector) and her partner is now in work, but wasn't at the time. They still charged them for the credit check though. They have now been sent this by the letting agent : "Your tenancy was originally set up with you paying the whole rent in advance for the term of the
tenancy. If you wish to proceed with an extension your rent payment options are as follows:
* Pay the whole rent in advance for the next term of the tenancy. The signing of the new
tenancy agreement and payment of the monies must be done at our office and at least 2
weeks prior to the tenancy renewal date. The payment must be in the form of a bankers draft
or building society cheque.
* Be re-referenced (for which a fee will be payable).
* IF an ‘A’ class reference is achieved you can pay the rent by monthly standing order,
with the first month's rent and signed tenancy agreement received by us at least 2 weeks
prior to the tenancy renewal date.
* IF the new reference is still a ‘B’ and you cannot provide a Guarantor, you must pay
the whole rent in advance for the next term of the lease to continue the tenancy for a
further term. The signing of the new tenancy agreement and payment of the monies
must be done at our office and at least 2 weeks prior to the tenancy renewal date. The
payment must be in the form of a bankers draft or building society cheque.Appoint a guarantor. With an ‘A’ class guarantor you can pay the rent by monthly standing
order. The first month's rent, signed tenancy agreement and signed Deed of Guarantee
must be received by us at least 2 weeks prior to the tenancy renewal date.
If you do wish to be re referenced, a new application will need to be completed and processed.
If the tenancy is extended your share of the administration costs will be £120.00 inclusive of VAT." They wouldn't let me be a guarantor even though I own three properties (no mortgages on any) and have over Five hundred thousand pounds in investments. My question is, can they charge every six months for credit checks and continue to refuse me as a guarantor? Thank you.
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.
Hello my name is ***** ***** I will help you.
Just to be clear, are they ending the tenancy or just getting a new one signed?
Customer: replied 1 year ago.

They want to renew the tenancy, they don't want to move out.

Expert:  Ash replied 1 year ago.
Are they saying they will charge for credit checks each time?
Customer: replied 1 year ago.

That is not clear, they want to do references checks again this time or they have to pay 6 months again in advance which they cant afford to do, also they have to pay another £120 for admin costs.

Expert:  Ash replied 1 year ago.
The law on admin costs is clear. They can only charge a reasonable fee for work done. What is reasonable is a matter for a Judge to decide but if you google Foxtons case you will see the law considers low fees reasonable.
They can charge for credit reference checks once if you switch to that but NOT every 6 months.
Does that help?
Alex
Ash, Solicitor
Category: Law
Satisfied Customers: 10915
Experience: Solicitor with 5+ years experience
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Expert:  Ash replied 1 year ago.
Hi

I am just following up to see if there is anything else I can help with?

If you have not done so already might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.

If you need more help please click reply.

Alex

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