The agreement with Ludlow and Thompson was signed via the post and the renewal fee clause was not pointed out.
It is on page 7 and is in 2 parts which read as follows:
3.2 A fee equivalent to 9% of the annual rent payable should the Tenant (The Tenant being one or more Tenants who were party to the original Tenancy Agreement) continue in occupation of the Property after the initial letting (whether by renewal, statutory continuation, or otherwise and whether or not his continued occupation has been arranged by the company). After the initial term the tenancy will revert to a statutory periodic agreement (as per the terms of the Housing Act 1988 Amended 1996) under which the Landlord can give 2 months notice at any time and the tenant can give one months notice to coincide with the expiry of a rent period.
3.3 The fee equivalent to 9% of the annual rent payable due on renewal of the Tenancy Agreement will be charged to the Landlord in periods of six months. The fees paid on renewals will not be subject to a minimum fee and any overpayment will be refunded as per clause 4.4.
What are your views on the clause? I am prepared to go to court but I need to know the expected costs. They are claiming £3524.61 of which £134 is interest, £235 solicitor referral fee. Within the claim is £1595 for this year even though the tenants had left at that point.
Do you know a good solcitor who can help?
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