Ending a company let during the fixed term

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    #16
    Also you will become responsible for complying with the HMO legislation.

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      #17
      According to solicitor on linked video owner is always responsible for ensuring compliance with HMO and all other such legislation.
      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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        #18
        I thought that it was the building manager that was responsible, and that could be delegated, Because of the way my internet connection is priced, I'm waiting till this evening to view the video.

        I guess, if the intermediaries fail to act as building managers, it will propagate up the chain.

        (In particular, it is possible for someone to own an HMO but not be a fit person for licensing, but use a manager who is.)

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          #19
          Hi - apologies for the reply

          Here’s the break clause:

          If the landlord shall desire to determine the tenancy hereby created at any time after the end of the first six months thereof and shall give the tenant not less than two months previous notice in writing of such desire provided always that such notice shall not be served sooner than six months after date hereof and shall up to the time of such determination and observe and perform the agreements and obligations...

          Does this mean I can break it?

          Thanks

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            #20
            Yes you can serve a break notice if the tenancy is at least 6 months old, but like I said, that'll just make the sub-tenant your tenant, it wouldn't give you vacant possession.
            I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

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              #21
              Hi,

              Thanks, that’s great news, atleast I can make some progress...

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                #22
                Hi,

                I just spoke to the tenant and he's saying that's not what the wording means - but to me it's clear enough English to mean I can break the tenancy, what else does it say?

                Time to get a solicitor involved?

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                  #23
                  Ask him what he think it's saying.

                  From the wordings you posted, it says you can serve a notice to the tenant if at least six months have passed since the "date hereof" which I take to mean the start of the tenancy. The notice has to be "not less than two months". On expiry, the tenancy is determined.

                  If the tenancy is assured, then a statutory periodic tenancy will arise by s5 of the Housing Act 1988. If the tenant is a company rather than a human, then the tenancy cannot be assured, and no SPT will arise, the tenancy will end and any subtenant becomes the tenant of the superior landlord.

                  Just serve the notice if that's what you want to do.
                  I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

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                    #24
                    Your T is the Co., not the occupant.

                    Why the urgency to re-possess?

                    What LL training have you done?

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                      #25
                      Hello,

                      So, I bought a property that was already tenanted - it's let to a LTD company (T).

                      The tenancy agreement says nothing about the T having permission to sublet, although there is a vague reference to "Permitted Occupiers" - there is also no prohibition to sublet

                      Now, I know the law is leaning in the Ts favour as there is no clear clause about subletting.

                      But, the T is subletting the whole house as a HMO and has applied for a HMO licence too - would this particular point make it an unlawful sublet?

                      There is nothing in the agreement about allowing to sublet as a HMO

                      I'm increasingly worried about having to unwillingly take on the subtenants and management of a HMO once I get rid of the T - I've asked for info on the subtenants and their agreements with T, but have not received anything back

                      Any advice would be appreciated.

                      Thanks in advance

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                        #26
                        Nothing unlawful & yes you should worry.

                        What does tenancy say, if anything, about you ending tenancy?

                        If occupants have ASTs (they will almost certainly) then if & when you end current tenancy the occupants become your tenants under terms of their AST (S18? of HA 1988…).

                        Make sure you get copies of everything --- service of PI, EPC, GSC etc etc etc).

                        Do let us know about progress.

                        Hope you got it cheap!
                        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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                          #27
                          If the tenancy agreement doesn't prohibit subletting it's allowed.
                          Unless the agreement prohibits the property's use as an HMO it's allowed.
                          Unless the agreement requires the tenant to provide copies of their contracts with their own tenants, they don't have to provide them (and they may have to redact some of the data if they do).

                          It's possible that the local authority might not allow the licence or the use as an HMO.
                          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).

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                            #28
                            So, if I unwillingly take on the subtenants - what happens with the ASTs, deposits?

                            Do I create new ones or carry on with their existing ones?

                            They will almost certainly not get their deposits back from my T

                            I want to advise them, that it's in their best financial interest to make a pre-emptive move to get their deposits back...

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                              #29
                              This will be a rent to rent scheme if its let to a ltd company. Check the wording of the agreement. I understand that some have struck out the forfeiture clause or amended it so that its impossible to end. You wouldn't be able to claim consumer protection on that either as its a commercial let. If the ltd co. has a room they call an office in the building, they may be able to claim the right to automatic renewal under the 1954 L&T Act. Sounds like someone didn't do their due diligence before buying.

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                                #30
                                Originally posted by twostepsbehind View Post
                                So, if I unwillingly take on the subtenants - what happens with the ASTs, deposits?
                                The original tenancies continue with you replacing the landlord, so the liabilities (to return the deposit for example) become yours.
                                Do I create new ones or carry on with their existing ones?
                                You can create new ones but the tenants don't have to agree to sign them.
                                They will almost certainly not get their deposits back from my T
                                No, but they can get the deposits back from you.
                                I want to advise them, that it's in their best financial interest to make a pre-emptive move to get their deposits back...
                                That would be misleading to say the least.
                                You have no relationship with the occupants and aren't in a position to offer them advice or even have any right to speak to them, beyond the rights any random stranger has.

                                Presumably you knew all this when you bought the property and the prices was set knowing that there would be some costs associated with ending the tenancy.
                                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

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