breaking contract
Submitted by visitor on Sat, 17/01/2009 - 13:35.
Help,
I have lost my job and can no longer afford to pay my rent. its 7 months into a 24 month contract. i have decided to move back in with my parents as i have no income. Foxtons want me to repay the commissions and keep paying rent untill the property has new tenents.
How far will they come after me
Will i get a bad credit rating
Please help
Breaking contract
Hey,
If you have a break clause, they can only pursue you that far. They can't pursue you for rent from when a new tenant moves in, but beware, they know that you're liable to the break clause and so it won't be a top priority for them to let it out again.
The commission... there will be something in your contract probably saying they can reclaim fees that they have to refund to the Landlord from when you move out. You should only have to do this up to the break clause but it depends on the contract.
They can't pursue you for more than you have, but they will probably try to work up a payment schedule with you to clear the debt. They may lay a charge against any standing assets you have as a bad debt runs out after 6 years or so.
I might suggest you try to find a replacement for yourself. As I said, they might be less than helpful replacing you. I'm not sure of Foxtons Tenancy Change-over policy, but if you can replace yourself, you may be able to lower what they charge you on their commission.
Be careful with your deposit. They can't deduct without your agreement, but they will try to make deductions for anything and everything, and they will over charge you for everything. This you can fight, regardless of their contract.
Best of Luck!
If you need more help, contact the Citizens Advice Bureau. They will at the very least be able to point you to people who can help you directly.
OFT
You may also be able to take the matter to the OEA and see if the Ombudsman can't help out. Google OEA, they're part of the OFT, and you can ask for help through the website. If the contract is very unfair, you may be able to get the charges reduced.
The OFT is taking Foxtons to court over unfair contracts towards Landlords; I think you may have a chance with arguing for tenants!
Legally you are liable for the rent
This is not a case of Foxtons being evil. They have to act for the landlord and the legal position is that the tenant has to pay the rent until a new tenant is found if this is sooner than the end of the agreement. Remember, this is a legal contract and actually the housing act improves your position by requiring the landlord to make efforts to replace you.
Below is an excerpt that can be found at
http://www.communities.gov.uk/publications/housing/assuredassuredtenants
Good luck. Darren@kings-residential.co.uk
5.6 Can I leave during the tenancy?
If you have a fixed term tenancy but want to move out before the end of the
term, you can only do so if the landlord agrees you can leave early or if this is
allowed for by a “break clause” in the tenancy agreement and you have followed
any requirements for giving notice specified in the tenancy agreement. If the
agreement does not allow you to leave early and the landlord does not agree that
you can break the agreement, you will be contractually obliged to pay the rent for
the entire length of the fixed term. However, this does not mean that the landlord
should necessarily be able to claim for the whole term’s rent if you leave early:
there is also a responsibility on the landlord in this situation to try to cover his or
her losses in other ways, notably by trying to re-let the accommodation.
If the tenancy has no fixed term, you must give the landlord reasonable notice in
writing of your intention to leave. You must give at least 4 weeks’ notice if you
pay rent on a weekly basis and at least a month’s notice if you pay rent on a
monthly basis. See the Department’s booklet Notice That You Must Leave.
Thanks for your help
Since i posted this, Foxtons have found a new tenant and they moved in the week we left. foxtons now want me to pay their commission off 11% for the remainder of the contract which comes to about £2000, i can not understand this as the new tenant is now paying the rent and there is only a change in name, which i told them i would pay for as it seems fair enough.
It seems unfair to me to ask for this money.
do i have to pay it?
Regards Peter
hmmm...
i rented through foxtons a while back and did enquire at the time as to what would happen should i suddenly need to move out. the negiotiator i delt with at the time informed me all i would need to do would be to pay the admin fee for the name change to the contract if someone else was found to take my place within the flat. i cant imagine they're allowed to take that 11% fee as well, esp if they now have someone else in there in your place, paying the rent you were paying previously...
Repaying the commissions fee
I'm afraid you do have to pay the commission fee. Your landlord will have paid this upfront, over the first few months of your tenancy, so will already be out of pocket by this much. I have had this happen to me, but as a landlord. We paid £6k in lettings fee for a 24 month tenancy, and after 5 months the tenants ran away, with no forwarding address. I had paid Foxtons the lettings fee, but had yet to receive a penny in rent, as Foxtons make damn sure they take their cash first.
You can get a change in tenancy which would avoid you repaying the lettings fee, but as they already have new tenants I'm afraid it sound rather late for that.
And it wouldn't be Foxtons who would chase you for any owing, it wouold be your landlord, possible represented by Foxtons - a small but significant difference. Foxtons don't take on any of the risk themselves, that's what I hate about them.
If your landlord takes you to court and wins, you could end up with a CCJ which is worse than just a bad credit rating. It can prevent you getting mortgages, jobs etc. And they can apply for an Attachment of Earnings to claim the money back via your employer if you don't pay up, and that could be very embarrassing.
I'm afraid the moral of the story is never sign up to a 2 year deal - it only EVER works in Foxtons favour, certainly not the tenants or the landlords.
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