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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)
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.
Ok - so they want 5%. Is there any reason you dont want to agree to this as it is in the contract?
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.
Sadly you would be in breach of contract. You have an agreement which you and they agree for a 5% fee based on renewals.
if you do not pay it you would be in breach of contract.
The only way you can end this is if your tenant physically moves out, even for 1 day
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
So there would be a break in tenancy
But this is the only way you can do it without being liable because you have signed a contract
I am sorry if this is not necessarily the answer you want but I have a duty to be honest
Can I clarify anything for you about this today please?
No thanks for the advice.