Leaving a fixed term tenancy agreement early

teachertrixibel

Hi there,

I currently have a one year fixed term tenancy agreement on a property I'm renting - I'm renting since 1st August 2011.

There has been a change in my circumstances so I want to leave the property in April.

The letting agent says because I dont' have a break clause he is not sure I can leave the property before 1st August. Have you any advice?

What happens if I decide to leave anyway and cancel the standing order?

Thanks,
Trix

djimi

The only "legal" way you can leave a fixed term lease early is if you get the landlord to agree to allow you to find a replacement tenant to take over the lease from you. The new tenant must be agreed by the landlord.

Other than that there is no way that you can break a fixed term lease early without penalty. At the very least the landlord will keep all of your deposit, and could potentially persue you for the rent owed on the remaining months of the lease (the latter is unlikely given the amounts in question).

splash221

I am a Landlord and you can leave no problem the contracts are not worth anything in the current climate.:)

djimi

splash221 wrote: »

I am a Landlord and you can leave no problem the contracts are not worth anything in the current climate.:)

Would you care to elaborate on what you mean by this? You mean to say that you have no problem with tenants walking out on their contract? Do you penalize them at all for breaking a lease?

If not, why bother signing a lease at all; as a landlord you get more freedom from the tenant being on a part 4 tenancy (or not, if they are there less than 6 months) than you do if they are on a fixed term, especially if you do not care about then staying for the agreed time.

odds_on

splash221 wrote: »

I am a Landlord and you can leave no problem the contracts are not worth anything in the current climate.:)

splash221 wrote:

Only buy these vehicles [Golf 1.4] when they are fresh ones a year or two. The old ones will break your heart and I should know sold lots of them.

Lease or tenancy agreements are not the same as contracts when selling second hand cars in Co Louth.

variety

djimi wrote: »

The only "legal" way you can leave a fixed term lease early is if you get the landlord to agree to allow you to find a replacement tenant to take over the lease from you. The new tenant must be agreed by the landlord.

There is one more: by mutual agreement.
However, the tenant should absolutely get confirmation in writing of this agreement, along with confirmation that no penalty will apply (financial or otherwise) for breaking the term of the lease.

@teachertrixibel: Do what djimi says: Assign the lease.
As long as you find a Tenant of the same quality as yourself who is willing to the take over the remainder of the term of the lease at the same rent, you'll be fine.

If the LL refuses to allow you to Assign the lease, then you're off scot-free. You can leave whenever you want, and are entitled to the return of your deposit in full (disclaimer: not saying this will happen, just saying this is what legally should happen- it might end up in a PRTB adjudication if the LL doesn't return the deposit, but at least you'll win).

And don't forget: do everything in writing. Email is only acceptable if you follow that up with letters.

OS119

djimi wrote: »

...If not, why bother signing a lease at all; as a landlord you get more freedom from the tenant being on a part 4 tenancy (or not, if they are there less than 6 months) than you do if they are on a fixed term, especially if you do not care about then staying for the agreed time.

the truth is that it is extraordinarily difficult to actually get money put of a former tenant. you can 'persue' all you like, but it will cost you money, and you're unlikely to actually get your hands on the money.

if, out of 100 tenants who leave a tenancy early, and with significantly more of the tenancy left than is covered by the value of the deposit, i'd be stunned if 5 were ever successfully persued by the LL and the LL got the money.

i'm a LL, and i have never, ever considered it worth the effort to chase a tenant who left a contract early (one left two weeks into a 6 months AShT with no contact or notice). for damages to the property, yes, but for leaving early, no.

OP, if your LL has half a brain he''ll accept with grace and use the situation to his best advantage - using the time between now and your planned leaving date to find the best tenants he can to replace you as soon as you're gone. the best thing you can do is be as co-operative as possible and allow viewings whenever he needs them and keep the place clean and tidy - if he knows that you're going to be as helpful as possible he's less likely to be a throbber over it.

teachertrixibel

thanks everyone for your replies. I absolutely want to be as helpful as possible to the LL but I absolutely also want to leave by the end of March/early april so that means I'm leaving without paying 4 mths rent (ie till the end of the fixed term lease).

i'll chat to LL and hopefully get it resolved with no issues...

Thx again,
Trix

odds_on

teachertrixibel wrote: »

thanks everyone for your replies. I absolutely want to be as helpful as possible to the LL but I absolutely also want to leave by the end of March/early april so that means I'm leaving without paying 4 mths rent (ie till the end of the fixed term lease).

i'll chat to LL and hopefully get it resolved with no issues...

Thx again,
Trix

If you do not assign the lease and vacate, the landlord is entitled to keep your deposit and persue you for the rent until the end of the fixed term. Also, if the landlord has to find the new tenant, you are liable for his reasonable expenses - advertising etc., (see receipts/invoices etc.).

Again, if you leave without finding a new tenant, the landlord is obliged to mitigate his losses as soon as possible by endevouring to re-let the property. If he decides to do an upgrade on the property, you are not liable any more.

JMJR

variety wrote: »

There is one more: by mutual agreement.
However, the tenant should absolutely get confirmation in writing of this agreement, along with confirmation that no penalty will apply (financial or otherwise) for breaking the term of the lease.

@teachertrixibel: Do what djimi says: Assign the lease.
As long as you find a Tenant of the same quality as yourself who is willing to the take over the remainder of the term of the lease at the same rent, you'll be fine.

If the LL refuses to allow you to Assign the lease, then you're off scot-free. You can leave whenever you want, and are entitled to the return of your deposit in full (disclaimer: not saying this will happen, just saying this is what legally should happen- it might end up in a PRTB adjudication if the LL doesn't return the deposit, but at least you'll win).

And don't forget: do everything in writing. Email is only acceptable if you follow that up with letters.

Only the OP knows the terms of the fixed lease and should read it carefully before making any decisions. Advising the OP on what action to take, without knowing the contents of the agreement, is dangerous.
In my experience there is usually a clause in a lease agreement prohibiting assignation (subletting). If you are allowed ( by terms of the lease or by agreement with the landlord) to assign the lease , you would then become the landlord to the assignee and you still remain under contract to the original landlord.

In your present situation what you could do is find a new tenant who will guarantee to enter into a lease agreement for the property immediately upon you leaving. You do not have a 'right' to do this you would have to get agreement from the landlord, who would also have the right to introduce new terms, eg change the rent. as it would be effectively a new lease agreement.

djimi

JMJR wrote: »

In my experience there is usually a clause in a lease agreement prohibiting assignation (subletting). If you are allowed ( by terms of the lease or by agreement with the landlord) to assign the lease , you would then become the landlord to the assignee and you still remain under contract to the original landlord.

Rules against subletting are there to prevent a tenant from taking in a paid lodger behind the landlords back, or to stop them from renting out the entire property to a 3rd party. Assigning the lease means that the new tenant, with the landlords concent, takes over your lease in its entirety, and that you are out of the equation completely.

variety

JMJR wrote: »

Only the OP knows the terms of the fixed lease and should read it carefully before making any decisions. Advising the OP on what action to take, without knowing the contents of the agreement, is dangerous.

Section 186 of the RTA allows a Tenant who has signed a Fixed Term lease to terminate the lease if the request to assign said lease has been denied.
This implies a right, in law, for a Tenant to request assignment of a lease.

JMJR wrote: »

In my experience there is usually a clause in a lease agreement prohibiting assignation (subletting).

That may be the case, but, again, you cannot include anything in a lease agreement which diminishes a Tenant's rights under the Act.
A clause such as this would be worthless.

JMJR wrote: »

If you are allowed ( by terms of the lease or by agreement with the landlord) to assign the lease , you would then become the landlord to the assignee and you still remain under contract to the original landlord.

^^^
Correct.

JMJR wrote: »

[...]find a new tenant who will guarantee to enter into a lease agreement for the property immediately upon you leaving. You do not have a 'right' to do this you would have to get agreement from the landlord

Agreed. This option would thereby cancel the OP's lease with the LL and all the OP's obligations.
This is not an Assignment, though, so the LL could still conceivably refuse to return the deposit.

odds_on

JMJR wrote: »

Only the OP knows the terms of the fixed lease and should read it carefully before making any decisions. Advising the OP on what action to take, without knowing the contents of the agreement, is dangerous.
In my experience there is usually a clause in a lease agreement prohibiting assignation (subletting). If you are allowed ( by terms of the lease or by agreement with the landlord) to assign the lease , you would then become the landlord to the assignee and you still remain under contract to the original landlord.

In your present situation what you could do is find a new tenant who will guarantee to enter into a lease agreement for the property immediately upon you leaving. You do not have a 'right' to do this you would have to get agreement from the landlord, who would also have the right to introduce new terms, eg change the rent. as it would be effectively a new lease agreement.

This clause usually says the the tenant cannot assign or sublet without the (written) consent of the landlord.

When a lease is assigned, the out-going tenant gives all his rights under the lease to the assignee (the in-coming tenant) and is released of all his obligations - he does not become the assignee's landlord.

When a tenant sub-lets, he moves out of the property and becomes the new tenant's landlord, but is responsible to the owner.

Marcusm

odds_on wrote: »

When a lease is assigned, the out-going tenant gives all his rights under the lease to the assignee (the in-coming tenant) and is released of all his obligations - he does not become the assignee's landlord.

Unfortunately a standard assignment would not relieve the tenant of his obligations. THe assignment would need to be accompanied by a release from the landlord.

It is possible that an incoming tenant could take an assignment of your rights AND assume your obligations under the lease but without an acknowledgement and release byt he landlord, the existing tenant would (absent any statutory or documentary provision to the contrary) remain liable in the event of default.

odds_on

Marcusm wrote: »

Unfortunately a standard assignment would not relieve the tenant of his obligations. THe assignment would need to be accompanied by a release from the landlord.

It is possible that an incoming tenant could take an assignment of your rights AND assume your obligations under the lease but without an acknowledgement and release by the landlord, the existing tenant would (absent any statutory or documentary provision to the contrary) remain liable in the event of default.

Yes, I certainly agree that a written release from the tenancy agreement is the legal way to go (to eliminate any problems that may arise after the event) especially when the lease was a fixed term lease, as the RTA 2004 with regards to assignments and sub-letting mainly refers to Part 4 tenancies and does incorporate some small statutory provisions.
I fear that this is not done by landlords.