Periodic tenancy and transfer fees

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    Periodic tenancy and transfer fees

    We are considering renting out a property and creating a periodic tenancy rather than AST from the start. However, we are concerned that we will need to pay the freeholder £25 per month transfer fee (per lease) required when we underlet as the tenancy will, in effect, be renewed on a monthly basis. Views/advice appreciated.

    Thank you.

    #2
    What does your lease say about using your flat as a private residence ? Letting on a monthly basis , it becomes a B & B and may need licence from your local council.

    AST gives you the legal right to get back your flat if tenant refuses to pay the rent.

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      #3
      Dear Gordon

      Thank you so much for your response.

      It is a residential lease but we can sub-let. I was not aware a periodic tenancy could be considered a B&B. Many ASTs are allowed to roll over to periodic tenancies so I am perplexed by this. If there is any other information you can signpost me to I would be grateful. We want to do things correctly and legally both in terms of statute and our lease.

      Comment


        #4
        "However, we are concerned that we will need to pay the freeholder £25 per month transfer fee (per lease) required when we underlet as the tenancy will, in effect, be renewed on a monthly basis."

        A periodic tenancy is a single tenancy not a series of tenancies. You only have to give notice once.

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          #5
          Dear Lawcruncher

          Thank you for clarification.

          Comment


            #6
            Originally posted by vmart View Post
            Dear Gordon

            Thank you so much for your response.

            It is a residential lease but we can sub-let. I was not aware a periodic tenancy could be considered a B&B. Many ASTs are allowed to roll over to periodic tenancies so I am perplexed by this. If there is any other information you can signpost me to I would be grateful. We want to do things correctly and legally both in terms of statute and our lease.
            My understanding - Before the introduction of AST rental agreements around 1997, tenants could move in and register their tenancy with Local Council and become regulated tenants with permanent rights to stay on, in the property.

            The AST agreement was introduced in 1997 and gave the property owner assurance against loss of flat with the right to claim back the flat at expiry of the rental term, ( and this AST agreement is respected by all letting agents and the Courts ).

            Now you are considering dumping the "front end" AST agreement and just keep the " tail end " periodic bit ?? I don't know what signpost I can give you but I believe a flat with regulated tenant may sell at half price.

            Comment


              #7
              Dear Gordon

              Thank you.

              We've found the answer to the question we were looking to answer. My main concern was whether or not we would need to pay the landlord a transfer fee every month.

              Periodic tenancies do not create Regulated Tenancies (RT). The tenancy agreement would need to be before 15 January 1989 for it to be a RT.

              We might go the AST route and assuming all pans out allow it to roll over to a periodic tenancy. If we do let, we will be looking for a long-term tenant ideally.

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