Fixed lease - Being bought out of it

ToxicPaddy

Ok, scenario is as follows:

Moved into a rented apartment at the end last year. Was informed that it was being put up for sale as the landlord is in a bit of trouble financially and it was being sold along with some other properties he owns.

No, problems, got a fixed term lease for 12 months.

Have just been informed that the apartment is now gone "Sale Agreed" but on the basis that the apartment is vacated at the start of June nearly 6 months before the lease ends as the new owners will be owner occupiers.

Fair enough, these things happen. However I have been informed that they are open to negotiation to "compensate" me for this inconvenience.

Apparently they have been very happy with having me as a tenant, have had no issues or problems in the time I've been there and I made a point of always having the place spotless, being very accommodating allowing people in when interested buyers were wishing to view etc.

So the thing is, what do I ask for? I have never been in this position before in all my time renting.

Anyone any suggestions?

djimi

Seeing as you are under no obligation to leave while under a fixed term lease (the landlord has no right to sell the house on the basis that you will be out of it before the term is up) its up to the two of you to come to an agreement in order to break the lease early. Maybe get him to make you an offer and see what you think.

How long have you been living there? If its only a couple of months then maybe full deposit plus the rent you have paid him if its only a couple of months (considering the inconvenience of having to allow the place to be shown)? I have no idea what to expect from a situation like this to be honest! Just remember you hold all the cards and if youre not happy with the terms of you leaving then you are under no obligation to do so.

ToxicPaddy

djimi wrote: »

Seeing as you are under no obligation to leave while under a fixed term lease (the landlord has no right to sell the house on the basis that you will be out of it before the term is up) its up to the two of you to come to an agreement in order to break the lease early. Maybe get him to make you an offer and see what you think.

How long have you been living there? If its only a couple of months then maybe full deposit plus the rent you have paid him if its only a couple of months (considering the inconvenience of having to allow the place to be shown)? I have no idea what to expect from a situation like this to be honest! Just remember you hold all the cards and if youre not happy with the terms of you leaving then you are under no obligation to do so.

I have been living there since last Dec. From what I believe, it wasn't the landlord calling the shots on the apt being sold, it was the bank. So I'm not going to get into the politics of all of that, its really none of my business, hence why I was being so accommodating when it came to viewings etc. Enough people I'm sure not too happy about this without me being difficult and adding to the misery of the situation.

I'm simply interested to see if anyone has experienced a similar situation and find out what the story is.

odds_on

In a "buy out" situation, it is the person who is buying out the lease that has the losing hand. You, are able to "name your price" - as
you are being disrupted from your fixed term of 12 months,
you have the problem of finding another suitable apartment, "just as nice" (or better),
you have the problem of perhaps finding an equivalent apartment at the same price,
you have the problem, inconvenience and expense of moving,
you have the anxiety of moving,
The landlord wants his apartment back "at all costs" - that is, if he does not buy out your lease, he may lose the sale and or may be offered less than he is getting at the moment; this could well be a substantial figure (several thousands and upwards.

You are in the driving seat and any offer made should be to your complete satisfaction, if not, refuse it. Remember, this is a business deal. If the landlord had been on the ball, he would have had either a Periodic lease or a Part 4 lease (not a fixed term lease) as with both of these, he would have been able to regain possession simply, with the correct amount of notice.

After six months in the apartment, you also gain Part 4 rights which allow you to stay in the apartment for 4 years. Thus, at the end of 12 months, you are automatically entitled to remain in situ. However, failing to produce a new fixed term lease (which the landlord would not do because he wants possession) means that the tenancy becomes a Part 4 tenancy and only now can the landlord gain possession by giving you the appropriate notice; thus, if you wanted to make life difficult for the landlord (and up your compensation, and buyer, you could remain in situ for another month or so!

All this is in your hand to get as much compensation from the landlord by way of the buy-out. Business is business.

the_syco

Double your deposit back up front and a month to move out?

The money up front will allow you to get a place easier and a month will hopefully be enough time to get a new place and move into it.

ShaShaBear

the_syco wrote: »

Double your deposit back up front and a month to move out?

The money up front will allow you to get a place easier and a month will hopefully be enough time to get a new place and move into it.

Would pretty much agree with this, ask for double your deposit and an extra month on top, the double deposit will cover a deposit on a new flat and the first month of rent up front and the extra month you can use to cover any bill charges, transferring of services like Sky or internet, and to buy anything like bedsheets/cutlery/groceries that you won't have in the new place.

It's definitely not a lot to ask, and you're getting just enough to make the move comfortable without being seen as greedy.

eclectichoney

I though the landlord intending to sell the dwelling was a valid reason for ending a lease? Or is that only in part IV instances?

djimi

eclectichoney wrote: »

I though the landlord intending to sell the dwelling was a valid reason for ending a lease? Or is that only in part IV instances?

Only in part 4 tenancy.

Thoie

If I was in that situation I'd ask for the cost of a removal company (get a few quotes for full service moving), the cost of the deposit for a new place up front, and a month rent free for the inconvenience of having to go house hunting again so soon.

ToxicPaddy

Cheers for the info guys..

Well I do not have to be out until the start of June but between April, May and June, its bad timing as I have a hell of a lot going on with work and other things, my preference would be either mid or end of July.

I've spoken to someone who was in something similar a few years back and they said, go ask for 6 months rent back and then bargin from there.. that's nearly €8k, a bit excessive imo (plus this was during the boom) but maybe the whole double the deposit and 1- 2 months rent might be a goer and still leaving some wiggle room for bargaining.

I don't need to worry about movers etc, as to be honest, I travel light and I did a big clearout of old stuff since moving in so a small van would move everything in one go with space to spare

If anyone else has experience of this please let me know.