End of FBT

[heritagefarmer]

I am coming to the end of the first year in a 2 year FBT, things haven't exactly been smooth and I have just been served notice for the end of the agreement.

Within this notice letter I was told not to be alarmed as this was just a 'professional formality' that is usually undertaken to end any agreement.

In further conversation I have been informed there is still potential to renew/ form another agreement.

Would others more experienced be able to tell me if this is standard practice?

 

[wasted years]

Probably yes, but 'they' may just be telling you that to keep relations good til the end, when they can say what they like.
Fact is that a 2 yr fbt is excellent for LL wanting to keep options open but really just risk for the tenant iunless there are specific reasons that would make a 2 yr fbt attractive.

 

[Flat 10]

Yes. They do this to 'protect ' themselves from you claiming an extra year as it keeps rolling if they don't send you one as l understand it.

 

[chaffcutter]

Actually I think that there has to be a legal declaration about the intention to form an FBT, we have had this several times, @blondeagadvisor ?

 

[blondeagadvisor]

Good morning, thank you for tagging me in this as it's an interesting one. Obviously I can only speak generally here about FBTs and this does not constitute any form of advice. By law a FBT of 2 years or less technically ends with the 'effluxion of time' this means it just ends. No notices have to be served to end it. With tenancies longer than this a notice of at least 12 months has to be served to end it on the end date otherwise it would just roll on on a periodic basis. I imagine that the serving of the Notice on this 2 year agreement is a 'belt and braces approach'. With regards to a right to renew a tenancy, this would have been something that was agreed at the beginning of the tenancy and written in to the agreement itself, or at the very least on a covering letter that came with the tenancy. On such a short tenancy this wouldn't be that common. I can only suggest that they are just suggesting that they will look at forming a new tenancy when this one ends but there are no guarantees unless it is clearly written in to the agreement. My advice would be to thoroughly go through the agreement and see if there are any words to that effect. If there aren't there are no legal automatic rights to renew with an FBT as they are 'freedom of contract' meaning that the parties (LL & T) can decide exactly what they want to do at the beginning of the agreement. Hope that helps! JP

 

[heritagefarmer]

Thanks everyone, all very useful, sounds like they are just protecting themselves which I have no problem with.

Thanks again!

 

[Ramrod]

Thanks everyone, all very useful, sounds like they are just protecting themselves which I have no problem with.

Thanks again!

And leaving the door open for a rent rise!!!!