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Ash
Ash, Solicitor
Category: Law
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Experience:  Solicitor with 5+ years experience
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We are in the process of breaking our residential lease,

Resolved Question:

Hi,
we are in the process of breaking our residential lease, new tenants have been found,
our question is:
We are being asked to pay the commission to the agent until the end date of the original lease which is December 2016, even though the Real Estate Agent has found a new tenants.
Deed of Surrender: £100.00 + VAT (the document which will formally end your responsibility for the property)
Inventory check-out cost: £90.00 + VAT (the Landlord paid to check you in, and so you will pay to check yourself out)
A new Tenancy Agreement: £160.00 + VAT (to enable the Landlord to enter into a binding contract with another tenant)
A new inventory check-in: £360.00 + VAT (to enable the Landlord to check the replacement tenant in)
Tenancy Deposit Scheme fee: £25.00 + VAT (the Landlord paid this to protect your deposit in line with current legislation, and so needs to be reimbursed)
Commission paid to Current RE: £423.00 + VAT per month (months run from 22nd – 21st, and this cost will be payable for each month [or part thereof] between 22nd March and 20th December 2016 that you vacate early because the Landlord cannot claim this back from Hamptons. The maximum you would need to pay, therefore, is £423.00 + VAT x 9 months = £3807.00 + VAT.)
Total cost should you leave in March = £4542.00 +VAT
Could you please inform us if this is correct
L&B
Submitted: 11 months ago.
Category: Law
Expert:  Ash replied 11 months ago.
Hello my name is ***** ***** I will help you.For now please let me know whether these fees are prescribed in the tenancy agreement?Alex
Customer: replied 10 months ago.
The real estate are claiming a payment of £423/ month for the remaining time of the lease (see email from Hamptons below)
They say they have to reimburse the landlord because they (landlord ) paid commission at the start of the lease equal to this amount.
There is a new tenant starting one month after we leave therefore the real estate are getting another commission which means that they will actually be “double” paid for the period now until end of Dec.
The termination was offered to us because of the problems and we should not need to pay this amount, cam be avoid it.Thanks
BrendanFirst and foremost, if our client does agree to release you early his consent will depend on the following conditions being met by you:
The Landlord’s out of pocket expenses are covered
The property is re-marketed by Hamptons immediately and access is freely permitted for viewings purposes
Another suitable tenant is identified, referenced and contractually secured before your obligations are formally surrendered
Rent is still payable in full until a new tenancy starts
The out-of-pocket expenses, referred to above, are incurred as a direct consequence of releasing you early from a contract which would otherwise have run for at least 12 months. The Landlord will need to be compensated for these expenses if you elect to proceed with terminating the tenancy early and include, although are not necessarily limited to, the following:
Deed of Surrender: £100.00 + VAT (the document which will formally end your responsibility for the property)
Inventory check-out cost: £90.00 + VAT (the Landlord paid to check you in, and so you will pay to check yourself out)
A new Tenancy Agreement: £160.00 + VAT (to enable the Landlord to enter into a binding contract with another tenant)
A new inventory check-in: £360.00 + VAT (to enable the Landlord to check the replacement tenant in)
Tenancy Deposit Scheme fee: £25.00 + VAT (the Landlord paid this to protect your deposit in line with current legislation, and so needs to be reimbursed)
Commission paid to Hamptons: £423.00 + VAT per month (months run from 22nd – 21st, and this cost will be payable for each month [or part thereof] between 22nd March and 20th December 2016 that you vacate early because the Landlord cannot claim this back from Hamptons. The maximum you would need to pay, therefore, is £423.00 + VAT x 9 months = £3807.00 + VAT.)
Total cost should you leave in March = £4542.00 +VATThe real estate are claiming a payment of £423/ month for the remaining time of the lease (see email from Hamptons below)
They say they have to reimburse the landlord because they (landlord ) paid commission at the start of the lease equal to this amount.
There is a new tenant starting one month after we leave therefore the real estate are getting another commission which means that they will actually be “double” paid for the period now until end of Dec.
The termination was offered to us because of the problems and we should not need to pay this amount, cam be avoid it.First and foremost, if our client does agree to release you early his consent will depend on the following conditions being met by you:
The Landlord’s out of pocket expenses are covered
The property is re-marketed by Hamptons immediately and access is freely permitted for viewings purposes
Another suitable tenant is identified, referenced and contractually secured before your obligations are formally surrendered
Rent is still payable in full until a new tenancy starts
The out-of-pocket expenses, referred to above, are incurred as a direct consequence of releasing you early from a contract which would otherwise have run for at least 12 months. The Landlord will need to be compensated for these expenses if you elect to proceed with terminating the tenancy early and include, although are not necessarily limited to, the following:
Deed of Surrender: £100.00 + VAT (the document which will formally end your responsibility for the property)
Inventory check-out cost: £90.00 + VAT (the Landlord paid to check you in, and so you will pay to check yourself out)
A new Tenancy Agreement: £160.00 + VAT (to enable the Landlord to enter into a binding contract with another tenant)
A new inventory check-in: £360.00 + VAT (to enable the Landlord to check the replacement tenant in)
Tenancy Deposit Scheme fee: £25.00 + VAT (the Landlord paid this to protect your deposit in line with current legislation, and so needs to be reimbursed)
Commission paid to Hamptons: £423.00 + VAT per month (months run from 22nd – 21st, and this cost will be payable for each month [or part thereof] between 22nd March and 20th December 2016 that you vacate early because the Landlo
Customer: replied 10 months ago.
Hi Alexattached you will find the Tenancy agreementKind regardsBrendan & Leanne
Expert:  Ash replied 10 months ago.
They can't double claim. Technically you are in breach of contract for leaving and if it went to court the judge would only put the landlord back into the position he would have been in had the breach not occurred.Therefore you are only liable for the one empty month, marketing fees and commission for that month.The agency can't claim commission for remaining period and for the new tenant.The agency would be profiting from the breach which they can't do.Therefore you are only liable for commission and rent until a new tenant starts. That is it - nothing else.Can I clairfy anything for you about this today please?Alex
Customer: replied 10 months ago.
Hi AlexBrendan is just on a call, i'll let him read you response. which is pretty much what we were thinking :)Brendan has discussed this with the real estate person, but he is still insisting that "its just the way things work here" which we doubtedcheers
Leanne
Expert:  Ash replied 10 months ago.
Indeed. They can't profit or double claim!Does that help?Alex
Ash, Solicitor
Category: Law
Satisfied Customers: 10915
Experience: Solicitor with 5+ years experience
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Customer: replied 10 months ago.
Hi Alexyes thats brilliant & we thank you so much for your advise. We have been trying to contact the Real Estate Agent but he isn't answering his mobile or landline. Hopefully Brendan will catch him today.
We shall let you know the outcomeCheersTake careLeanne & ***** *****
Expert:  Ash replied 10 months ago.
Good luck!Alex

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