Conditional Tenancy Agreements

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    Conditional Tenancy Agreements

    Hi, I have a prospective tenant currently in receipt of UC without an alternative payment arrangement. I have suggested to him that I will be willing to let if he can secure a MLTP which I think he may be eligible for.

    Chicken and egg: I want this secured before granting a tenancy. He needs a tenancy before in order to do this.

    Would there be a problem with me writing out an agreement, postdated a couple of weeks, with an extra term to say that the tenancy is conditional on the MLTP being secured?

    Thanks

    #2
    What is a MLTP?

    Comment


      #3
      Sorry, MPTL. Managed Payment to Landlord.

      Comment


        #4
        Even if he fails to get such a deal, he will still have a contract that he could (but probably won't..) sue you over.

        It won't be a tenancy as he won't have moved in.

        What conditions would you impose on a PAYE employed worker? That he gets written confirmation that he will never be fired?

        Whoever you take on as a tenant, whatever their circumstances, there is ALWAYS risk. If you don't like a risky business get out of it.
        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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          #5
          Originally posted by RedSkyAtNight View Post
          Would there be a problem with me writing out an agreement, postdated a couple of weeks, with an extra term to say that the tenancy is conditional on the MLTP being secured?
          What could the tenant do with that future dated agreement?
          The DWP shouldn't accept it.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment


            #6
            Thanks JP. Let me clarify. I was intending to post date the tenancy for 2 weeks. This is the actual date that I expect the tenancy to start; he wont be moving in before then. This is real and is not intended to be any sort of sham. I think the DWP probably deal with this sort of arrangement all the time. The dating of the tenancy was not the bit I thought would be a problem. It may be possible that they would have a problem with the conditional term, but its not like they are going to get counsel to go through it so it will probably never even be seen.

            If within that two weeks the MPTL was not in place, the contract would be void because of the conditional precedent was not satisfied. There would have been no performance of the contract from either side.

            I think as the artfullodger says, the likelihood of a claim is tiny.

            Thanks

            Comment


              #7
              There's nothing wrong with a conditional tenancy agreement in itself.
              I've never dealt with them, but 14 days sounds like a DWP couple of seconds.
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

              Comment


                #8
                The DWP will not accept that at all.

                They want to see proof that a tenancy exists before they will add a Housing Element to UC, let alone set up a Managed Payment to LL.

                That may change though, it's currently one of the big issues in UC.

                You are aware that UC pays housing element in arrears?
                ie. the claimant gets the he at the end of a months rental period - and with a private LL it currently is a calendar month and not 4 weeks, so it can get out of sync over the course of a year.

                If the prospective tenant can manage this themselves without a MPTL that's probably better.

                Comment


                  #9
                  Originally posted by RedSkyAtNight View Post
                  ....

                  I think as the artfullodger says, the likelihood of a claim is tiny.
                  ....
                  No, that is untrue: I stated they probably won't claim.

                  I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                  Comment


                    #10
                    You cannot grant a conditional tenancy. The start date and maximum duration of a tenancy must be fixed or ascertainable when the tenancy begins. If the tenancy is expressed to be subject to a condition that it starts when the MLTP is secured the start date is uncertain. If it is expressed to come to an end if the MLTP is declined its maximum duration is uncertain. You could grant a tenancy for a fixed term with a landlord's right to break if the MLTP is declined, but all that will happen is that when the break notice expires a statutory periodic tenancy will arise if the tenant stays in occupation. Apart from that, a tenant is entitled to a minimum period of occupation of six months.

                    You can though enter into an agreement to grant a tenancy conditional on the MLTP being secured. The problem with that is that there will be no tenancy before the MTLP is secured.

                    A postdated agreement has two possibilities. One is that it is void because it is postdated; the other is that it takes effect on its date. I have never had to consider the point and am not sure which applies. What you cannot do is to have a situation where there is effectively a one-sided contract which is enforceable at your election - unless perhaps it is drafted as a put option. Again though you would have a situation where there is no tenancy when the application for the MLTP is made.

                    Apart from all the above, you do not really want to be getting into conditional contracts. let alone options, for short term residential lettings. They are sophisticated documents which require expert drafting.

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                      #11
                      Can the tenant get a 'predetermination of rent' (this was possible under HB but not sure if it can be given under UC)?

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