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Topic: Can my estate agent legally do this?  (Read 1394 times)

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Can my estate agent legally do this?
« on: January 29, 2010, 11:29:30 AM »
I was wondering if anyone had any advice to share, as I can't find any answers online and our local CAB is either never open or always mobbed...

My husband and I moved into our flat last September, signing a one-year lease. Unfortunately we didn't know when we signed the lease in the summer that I was pregnant, and the flat is not really suitable for kids -- it's a very, very tiny 3rd floor walkup, practically a studio. It's not impossible to have a newborn here for a few months, it's just going to be a bit challenging, and as we have no break clause in the lease, we figured we'd just make do and get a bigger flat this September.

We spoke to our landlord last week to have her sign some forms so we can apply for housing benefits, and when she heard our situation she very kindly agreed to let us out of our lease early. (She was living here when she had her son 3 years ago, and she said it was kind of a nightmare.) She was really cool and said she wouldn't charge any penalties and we could just give a month's notice.

Unfortunately, she has an estate agency managing the flat, and they are being really diffficult about the whole thing (I should say they have been very unprofessional and useless ever since our first contact with them last summer.) They want 2 months notice and have delayed all week giving us any specifics in writing, and are generally just being really obnoxious.

Here is what I could use some advice on. There is a clause in our lease that says if both the tenant and landlord agree to end the lease early, we need to keep paying rent until a new tenant takes possession -- I know this is standard, and we will deal with this. But it goes on to say:

"In addition the Tenant will reimburse the Landlord the letting commission (10% of the rent + VAT) from the date of early termination until the date that this contract was originally to expire."

So basically, even when we find replacement tenants and don't have to pay the rent anymore, we still have to pay the 10% commission for the agency every month until September.

My questions:

1) Is this legal? I understand it's not legal to charge double rent (ie collect rent from two tenants at the same time) and whatever they want to call this charge, it seems to me like we're still having to pay some rent.
2) On the phone the agent referred to this 10% as a "penalty." Our landlord very clearly said she would not charge us any penalties, so can the agency still impose a penalty on us?

Our lease is between us and the landlord, not the agency, but the agency arranged all the paperwork and says they are the landlord's agent so their word goes, basically. We spoke to our landlord about all this and she thinks as well we need to go along with what they want.

Does anyone have any thoughts?

Also, is there any chance of getting some relief because I'm moving because of pregnancy -- like, any special provisions in the housing laws or anything? I guess legally it doesn't really matter, you still can't break your lease... just checking...

Thanks!


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Re: Can my estate agent legally do this?
« Reply #1 on: January 29, 2010, 11:52:11 AM »
It is legal unfortunately and you agreed to it. However, since the landlord has agreed to let you out of the contract, the agent won't be able to enforce it against you.  The best thing to do would be to speak to the landlord again and have her make it clear to  the the agent that you do not have to pay. If at all possible, try and get something in writing from the landlord, even an email. The agent may wwith hold it from your deposit but if you can show the landlord agreed not to do this, you should be able to get your money back from the tenancy deposit scheme.



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Re: Can my estate agent legally do this?
« Reply #2 on: February 01, 2010, 08:13:39 PM »
Thanks for the advice!! This makes a lot of sense.

I'll try another talk with the landlord...

Yet again, I'm so happy about the deposit scheme... Bloody estate agents...

cheers,
j


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Re: Can my estate agent legally do this?
« Reply #3 on: February 01, 2010, 08:35:06 PM »
Hope it works out ok!


Re: Can my estate agent legally do this?
« Reply #4 on: February 04, 2010, 03:54:06 AM »
hope that everything goes smoothly..
wish you luck.. ;)


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