To sign a new lease, or not to sign a new lease ...

My lease is up in February, and I've received a letter from the letting agent basically saying we can go month-to-month (sort of, it requires a two-month notice to leave) or sign a 12-month lease. Going month-to-month requires an 82.50 renewal fee, but the 12-month fixed term lease does not require this fee.

We had decided to go with the 12-month lease as we don't plan to really start looking for a job back in the States for another year (but of course unexpected things come up, so flexibility is nice). I called the letting agent to make sure I understood the options, and they said they'd already sent out papers for us to do a month-to-month lease and that if we wanted the fixed term, she would have to OK that with the landlords. This was odd to me, as I thought they would prefer a 12-month lease. I'm not sure if there's something about the two options I'm failing to understand.

I do like the flexibility of being about to leave if something unexpected comes up, but I also like the security of knowing our landlord can't raise the rent or ask us to move for 12 months if we sign the lease. Moving is way too expensive, what with hiring movers and paying agents' fees and down payments, etc. We really don't want to have to move until we're moving back to the States or possibly to a cheaper city for a new job in the UK. We have considered just sending me back to the States so I can get coverage for my pre-existing health condition, and moving my husband into a small, cheap place here. But we had discarded that idea, so I don't think we'll want to move for another year.

Is there something I'm not considering? Which is the best option, month-to-month or a 12-month lease?

You're in England, right? (Just checking it's English law and not Scots law that applies as it is slightly different).  In that case once your lease expires, the law says you are automatically on a month to month and don't need to sign anything or pay anything for that to be the case. Nor do you have to give 2 months notice to leave if you are on a month to month.

If you sign a 12 month lease, however, you will be bound by its terms and there is likely to be a longer notice period and you should also check what it says about getting out early as you may be stuck paying the full 12 month's rent should you need to move earlier. 

You're in England, right? (Just checking it's English law and not Scots law that applies as it is slightly different).  In that case once your lease expires, the law says you are automatically on a month to month and don't need to sign anything or pay anything for that to be the case. Nor do you have to give 2 months notice to leave if you are on a month to month.

If you sign a 12 month lease, however, you will be bound by its terms and there is likely to be a longer notice period and you should also check what it says about getting out early as you may be stuck paying the full 12 month's rent should you need to move earlier. 

You are only required to give one month's notice under the law.  The landlord has to give 2 month's notice. 

Go on a month-to month and don't sign anything.  As long as you pay your rent and you are good tenants, they have no grounds to evict you. You are also better protected under a month-to-month than a 12 month lease.

You are only required to give one month's notice under the law.  The landlord has to give 2 month's notice. 

Doesn't that depend on the terms of the contract?

Vicky

Doesn't that depend on the terms of the contract?

Vicky

Under a basic contract, it is one month/two months.  Unless something different is stipulated in the contract, that is the notice period. 

I have become very familiar with landlord/tenant law because our landlord tried to evict us with only 2 weeks notice.  They can't do that!  Under a month to month lease, they must give two months notice, ending on the last day of the lease period (ie day before you pay your rent), likewise if the tenant is giving notice, it must be one month, ending on the last day of the lease period. 

Ah, you mean it has to be at least one month.  That makes more sense.

Vicky

You are only required to give one month's notice under the law.  The landlord has to give 2 month's notice. 

Go on a month-to month and don't sign anything.  As long as you pay your rent and you are good tenants, they have no grounds to evict you. You are also better protected under a month-to-month than a 12 month lease.

Sorry that is only correct for periodic (month to month) tenancies. Where there is a lease (contract) it depends on the terms therein. The one month is a minimum.

Under a basic contract, it is one month/two months.  Unless something different is stipulated in the contract, that is the notice period. 

I have become very familiar with landlord/tenant law because our landlord tried to evict us with only 2 weeks notice.  They can't do that!  Under a month to month lease, they must give two months notice, ending on the last day of the lease period (ie day before you pay your rent), likewise if the tenant is giving notice, it must be one month, ending on the last day of the lease period. 

I think we're saying the same thing!

But on the month-to-month plan, can't the landlord raise the rent at any time? Or if they want to sell the place or know someone they'd like to rent to, they could give you two months notice and put you out?

We're very good tenants and no reason to evict us. However, several things have broken down in this apartment and we've had to call to have them fixed. We're afraid the landlords will want us to move out because things break down all the time -- perhaps they think we give things hard use? We don't give anything hard use -- there's just two of us, and we're pretty easy going on things. Each time something breaks down, the letting agents have to call the landlords to get permission to send someone out to have it fixed. There is no handyman for these apartments; professionals have to be called out each time. The latest breakdown was the fan and light above the stove. We reported it weeks ago, and two weeks ago I was told they (letting agents) were waiting to hear back from the landlords. So the repair situation is something we fear would make the landlords not like us, even though I never get pushy or over-heated when I have to report yet another problem, and am patient about waiting to hear back. (FYI, Our dishwasher broke early on, and the repairmen kept trying things that didn't work, which took a couple of months and three or four visits before they found the real problem; the stove heating element went out; the hot-water heater quit; and the switch that makes gas go on when you turn on the heat went out. All this was before the over-stove light/fan died). Even with all that, moving would be an expensive hassle we don't want.

Given these concerns, is a month-to-month still the better option? I always am afraid of being tied down to a lease, but the way things operate in this country are a bit different than in the U.S., and with an individual landlord instead of a corporation having to deal with repair problems, I get scared they'll want us to go. This is the first time I've ever thought signing another long-term lease might be the way to go, though I still see the appeal of the shorter lease.

OK well none of that was clear from your original post.

http://www.letlink.co.uk/

You can find all the legal stuff here but it all depends what is more important to you, the flexibility of a periodic tenancy or the certainty of a short assured tenancy.

Just found out they are trying to get an exorbitant rent increase from us, so we'll be either negotiating that down or moving. I've got to look into Britwife's comments about not having to sign or pay anything if we go month-to-month, because for the non-fixed term agreement they sent us, we would have to sign something and pay 96 pounds to the letting agency.

Then they are conning you. Legally you do not have to sign anything or pay anything for your tenancy to become periodic.  Look at the link I posted if you want to double check. It might be their company policy but it's a shoddy one.

I am on a periodic tenancy now, and it is kind of freaking me out.

I have always lived in apartments in New York, where you had one or two-year leases (the tenant decided if they wanted the lease for one or for two years) which the landlord had to automatically renew, and if he didn't want to renew your lease, he had to take you to housing court to prove that you had been a bad tenant.

I'm shocked by the fact that my landlord can just tell my husband and me to "get out" in two months if he feels like he wants to do something else with the place.  What if we can't find another place that we can afford in two months time?

It makes me feel like I'm being treated as a trespasser/criminal in my own home.

You are actually better off living in Council Housing (and letting other taxpayers subsidise your rent payments) than as a private tenant - at least with Council Housing you can be sure that you will have a place to sleep every night. What kind of messed up system is this?

Then they are conning you. Legally you do not have to sign anything or pay anything for your tenancy to become periodic.  Look at the link I posted if you want to double check. It might be their company policy but it's a shoddy one.

Whatever they're doing, they are trying to put the squeeze on as for as much cash as possible. Perhaps I'm using the wrong terms, though, so here's what the paperwork they sent over says:

"...the tenancy... should continue for 12 months at a rental of £XXXX.00 per calendar month and otherwise on the same terms and conditions as the Agreement (meaning the original tenancy agreement) so far as they are applicable to an extended tenancy and subject to additional (if appropriate) special clause(s) as detailed herunder."

It ends with a colon as though special clauses will be listed, but there aren't any, there is just space for us to sign the agreement and have it witnessed.

I think we're saying the same thing!

Yes, indeed, I'm just barfing up what I've been quoting ad nauseum to my former crazy landlady!