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Ash
Ash, Solicitor
Category: Property Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Hi, I am going into my 4th year of having to re-new my Landlords

Resolved Question:

Hi, I am going into my 4th year of having to re-new my Landlords tennancy fee via an estate agent. I forwarded an email to them to say I was not going to re-new the tennancy via the estate agency this year. I recevied a repsonse from them to say as long as my tennant stays in the property I have to pay the renewal fee, otherwise they would take out a CCJ against myself. I have No issues with the tennant staying. Can you please confirm if an estate agency is likely to win a CCJ against myself
Submitted: 3 years ago.
Category: Property Law
Expert:  Ash replied 3 years ago.
Alex Watts : Hello my name is ***** ***** I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.
Alex Watts : Have you signed a contract with the agent? If so what does it say about renewal please?
Customer:

if the tennancy is extended by a new tennancy agreement, by a contractial periodic tennancy or by memorandum, or should a tennant remain in occupation on a continuous roll over basis as a periodic or statutory periodic tenancy, renewall fees beyond the initial year of occupation are based on a reduced rate of 5% of the rent for the further period plus vat payable on the same basis as already detailed herein, regardless of whether any extension is negotiated through our company directly.. The tennant will also by liable to pay us an admin charge on the anniversary of each renewal. All renewall fees are payable once the negotiations have taken place and apply regardless of whether either party (landlord or tenant) finally return the signed memorandums to extend (the renewal Contract having been establisehd by the tennant continuing to pay rent and the landlord accepting the rental payment)

Customer:

Reduced rate will apply provoded our re-bewal invoice is paid within 4 weeks of the tennany renewal date. Otherwise our fee reverts back to the full rate of 10% without further notice and a final invoice will be sent for immediate payments togeather with a copy of our online application to the county court for the full fee of 10% which wil then be processed by us 10 days after our final invoice has been sent. This could then result in a CCJ being made against you.

Alex Watts :

Ok - so they want 5%. Is there any reason you dont want to agree to this as it is in the contract?

Customer:

That 5% works out at just over £500 a year, as my property is in Northolt Middx. I am a single parent with 1 wage coming in and with 3 grown up Children still living at home at home of which 1 work. my youngest daughter is currently doing her a - levels. So I would prefer to keep the money for my own use.

Alex Watts :

Sadly you would be in breach of contract. You have an agreement which you and they agree for a 5% fee based on renewals.

Alex Watts :

if you do not pay it you would be in breach of contract.

Alex Watts :

The only way you can end this is if your tenant physically moves out, even for 1 day

Alex Watts :

If the contract ended on a Saturday, they moved out, Sunday the property was empty and then they signed a new contract on the Monday

Alex Watts :

So there would be a break in tenancy

Alex Watts :

But this is the only way you can do it without being liable because you have signed a contract

Alex Watts :

I am sorry if this is not necessarily the answer you want but I have a duty to be honest

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

No thanks for the advice.

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