Should I sell or risk tenants buying at undervalue price?9:08 AM, 25th September 2019
About 3 weeks ago 48
Shelter do it again! Screw the vast majority of decent tenants that is, by their support for the Tenant Fees Act.
It is now not possible for a landlord to agree to a surrender of a tenancy without either:
a) breaking the law, or
b) being out of pocket
So no landlord in his right mind will agree to early termination of the tenancy of a decent tenant. Of course the bad tenants will be unaffected because they already cost the landlord.
This comes from the wording of paragraph 7(2) of Schedule 1 to the act, which says:
“But if the amount of the payment exceeds the loss suffered by the landlord as a result of the termination of the tenancy, the amount of the excess is a prohibited payment“.
It is impossible to know at the time of negotiating and agreeing the surrender the exact loss to the landlord (e.g. a new tenant may be found in a week or it may take 2 months), and so it is extremely unlikely that the exact loss will be agreed upon. That leads to the conclusion that either a) or b) above applies.
Yes, it would be possible to bill the tenant later, but the idea of a surrender (and the wording of the accompanying deed, which is required by law) is that from the moment of surrender the LL and T have no further obligation to each other. And is any LL going to trust the T to pay the X hundred pound because it took a month to find a new tenant?
So there we have it. Thanks to Shelter (and others) no landlord who understands the law will now agree to the early surrender of a tenancy by a decent tenant.
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