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Early termination, visa expire and unreasonable landlord commissions

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93 views 1 replies latest reply: 03 March 2017
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Tenant

I signed a renewal 2 years lenght from 10/2016 until 10/2018 without break clause. I have some bussinesses that cannot stay, then I contacted the agent and told them that I want to early terminate my tenancy in 4/2016.

The agent first said I have to pay the rent from the point I move out until the end of original term with a huge amount of £30,000 (unbelivable). I negotiated them, then there was a point that my visa is going to expire in 10/2017. I told them that it’s illegal for me to rent that property while I don’t have visa. Immediately they agreed for me to pay the rent until I leave. 

However, they said I will be liable to pay commission from when new tenant is found until the end of my tenancy at £4,000. They said the commission refers to fees of letting property that should be paid by the lanlord.

I think because my visa epires before the second years of tenancy that means I can’t live in the flat after that. So if the landlord pay commission, it can’t be paid for my tenancy, but anyone who rents that property by that time. I tried to negotiate with the agent, but they kept repeating that the commission is already stated in the agreement and can’t be negotiated, then I have to pay for it. They also said I was at fault because I didn’t know my visa expiration and signed a 2 years agreement. But during the renwal process (occured more than 1 month) they didn’t ask to check my visa again, as I know they should be liable  to check before let me rent (I knew it through Right to Rent).

That fee is quite a huge amount for me, also I think it’s unfair and unreasonable, so what should I do in this situation? Thank you for any and all advices. I just feel extreme uneasy to give them such amount after those things. 

Thank you.

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Tenant

Okay so here is the deal: You’re likely not going to get a better deal because of several reasons: 

You DID sign a fixed term tenancy and the only thing that bails you out from the landlord asking for full rent is the fact that your visa expires. Your mistake was to not negotiate for a break clause, as 2 years is a long term and everything can change. 

That doesn’t matter now though. 

Typically, when tenants want to get out of a fixed term, the agents or landlords use the following charger (or something similar):

The tenant pays rent from the day they move, until the day a new tenant moves in. This may be 2 weeks or 2 months, depending on how popular the property is.

The tenant also pays a fee of 10% of the remaining rent of the original fixed term. 

For your tenancy this means, 18 months x 10% ~ 1.8 full months of rent. 

If you were requested 30k rent for 18 months left, then your rent should be around 1650 – 1700 per month. 

Based on the above, this charge would mean around 3000 pounds + whatever time is required to get a new tenant in the property. 

So, in the end, when you sum it up it will probably make around 4000 pounds as well. 

I understand WHY you feel uncomfortable about this charge, but you must realise that a rental contract is a serious binding and based on what you said, you have nothing to back you up, other than the visa expiring, which will at least allow you to leave on time. 

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