Bought house - breaking existing tenancy lease - what to tell LL?

sarkozy

Looking for advice on the best approach on something.

We're at the final stages of buying a house. Mortgage 'released for completion', contract and deposit returned. Everything was moving towards the closing date later this month.

The other day, the solicitor informed us that the closing date doesn't suit the vendors. Our solicitor is on holidays for two weeks, and we still haven't been able to agree the closing date as yet.

We also are currently renting and want to let our landlord know. We want to give him the statutory notice period - we have to agree something he'd be happy with so we can get our deposit back, but we would also prefer not to be responsible for assigning the lease. We have a good relationship with the LL and we want to be as good as possible; we also would prefer some overlap with the house coming into our possession so we can move in a less stressful way.

Without a closing date, I don't know what we should tell the LL. For all we know, we could agree a date with him but the closing date is stretched out and we're left homeless. In the meantime, prospective tenants are viewing the house and they also don't know where they stand.

So do we either wait until we have a closing date to notify him, or take the risk?

murphaph

sarkozy wrote: »

Looking for advice on the best approach on something.

We're at the final stages of buying a house. Mortgage 'released for completion', contract and deposit returned. Everything was moving towards the closing date later this month.

The other day, the solicitor informed us that the closing date doesn't suit the vendors. Our solicitor is on holidays for two weeks, and we still haven't been able to agree the closing date as yet.

We also are currently renting and want to let our landlord know. We want to give him the statutory notice period - we have to agree something he'd be happy with so we can get our deposit back, but we would also prefer not to be responsible for assigning the lease. We have a good relationship with the LL and we want to be as good as possible; we also would prefer some overlap with the house coming into our possession so we can move in a less stressful way.

Without a closing date, I don't know what we should tell the LL. For all we know, we could agree a date with him but the closing date is stretched out and we're left homeless. In the meantime, prospective tenants are viewing the house and they also don't know where they stand.

So do we either wait until we have a closing date to notify him, or take the risk?

Do you have a fixed term lease with the landlord or is it a part IV tenancy already? A lease has no statutory notice period: you are liable for all the rent until that lease expires as it's simply a contract between the parties for the duration stated.

If it's a Part IV tenancy then the statutory notice peiods apply and there's no obligation on you to find replacement tenants etc.

You should wait until you have a closing date regardless IMO as you don't want to find yourself homeless whatever happens.

sarkozy

Yes, it's a lease without a break clause. I'd agree with you. Without knowing what's happening, it's impossible to know what to say to the LL. We could assign the lease, but we would prefer it - and the LL may, too - if we could break the lease on agreement and he looks after finding replacement tenants. We would be happy to show the place to prospective tenants on agreement.

While the statutory period may not technically apply, I also think it's a 'fair' principle to begin discussions with the LL.

Does anyone else have any views?

Zamboni

sarkozy wrote: »

Does anyone else have any views?

Do nothing in relation to your tenancy until you have the keys for the new house.

murphaph

sarkozy wrote: »

Yes, it's a lease without a break clause. I'd agree with you. Without knowing what's happening, it's impossible to know what to say to the LL. We could assign the lease, but we would prefer it - and the LL may, too - if we could break the lease on agreement and he looks after finding replacement tenants. We would be happy to show the place to prospective tenants on agreement.

He may well prefer that if he's amenable to the lease being broken early alright but you have to remember, you signed a contract with him and he has up until now upheld his side (provided you with a home) so he may well want compensation for you not upholding your side of it. The least he'll want is his advertising costs and probably something for his own time.

sarkozy wrote: »

While the statutory period may not technically apply, I also think it's a 'fair' principle to begin discussions with the LL.

Not sure, the statutory limits are lower the shorter the tenancy, but you don't have a Part IV tenancy, you have a contract between 2 parties which you want to break, so don't be too surprised if the landlord thinks double the statutory notice period is more like it (if he's prepared to deal at all).

You can imaging how upset you'd be if your vendor did something totally contrary to your purchase contract or if your vendor simply decided not to leave having closed!

Personally I think you should tell your LL of your intentions asap so he can start making preparations (perhaps he has some decoration in mind etc.) and you can start negotiations with him on early termination of the lease agreement. He'll be annoyed if you leave it too late, that's for sure, and may be suddenly less amenable to cooperating with you.

odds_on

You may find that the cost of losing your deposit (for the privilege of not assigning/vacating until the last minute) may well be less than having to stay in a B&B/Hotel for a while, should things not go exactly to plan.