In order to break this lease, it must be agreeable. Your landlord has not agreed to allow you to break the lease without a penalty. Your landlord did not seem to mind that you would be breaking the lease. Once you move and is no longer living in the rental unit, you will discover that your landlord do mind.
Your landlord is not able to tell you what to do in this situation. If you want to break the lease, you should be prepared for the financial penalties and possible being sued.
You are not legally allowed to withhold rent based on repairs needed to your rental unit. By withholding the rent, your landlord is able to give you a notice to pay or quit (Move). If you fail to move based on this notice, your landlord is able to file for a legal eviction signed by a judge.
This legal eviction would be listed on your credit credit report for 7-10 years. Since this eviction notice would be listed on your credit report, you would have a difficult time getting approved for any rental unit you would apply for.
If you break the lease, you will not get your deposit returned to you. In all probability your landlord will keep the deposit to apply to any rent you are planning not to pay as well as any damage found in the rental unit after you leave.
If the deposit does not cover any unpaid rent and damages found in your rental unit you could be sued for the
difference, in small claims court, by your landlord.
It appears as if you failed to inspect the rental unit prior to moving in. In most instances you would have found most of these items in need of repair
The mold you claim to be in the rental unit is probably mildew. Mildew is not a health hazard and is easily removed with a household cure or one you might purchase at your local hardware store.
The cost of the utility bills are determined by the amount of the utility you use.This has nothing to do with your landlord. You really want out of this lease agreement because you are not able to afford the utility bills. Your inability to pay these debts is not a reason for you to void the lease agreement.
The question is not if this house may be legally rented to someone, the question is why did you rent this house without inspecting it. If you did inspect it why did you not find the deficiencies?
If you feel as if this is a health hazard, you should contact the city health and safety department and report these things to them so they would send an inspector to inspect the items.
I hope this has been of some benefit to you, good luck.