Changing from an Assured Shorthold Tenancy to a Contractual Tenancy

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  • Changing from an Assured Shorthold Tenancy to a Contractual Tenancy

    We are carrying out a rent review which has been agreed by the llord and tenant - and the rent now exceeds £25,000 per annum. Therefore the tenancy now qualifies as a Contractual tenancy agreement rather than the current AST. Do we need to bring the current AST to an end before we can start the new tenancy?

  • #2
    Originally posted by vanandmatt View Post
    We are carrying out a rent review which has been agreed by the llord and tenant - and the rent now exceeds £25,000 per annum. Therefore the tenancy now qualifies as a Contractual tenancy agreement rather than the current AST. Do we need to bring the current AST to an end before we can start the new tenancy?
    1. The tenancy exists and can continue. There is no need to terminate and re-grant.
    2. If the rent is above £25 000, at the outset or subsequently, the 1988 Act ceases to apply- but that does not affect the tenancy's validity.
    3. See paragraph 2(1)(b) of Schedule 1 to 1988 Act. It is "...a tenancy under which the rent payable for the time being is payable at a rate exceeding £25 000 a year." I've added underlining to highlight that the tenancy could even slip in and out of 1988 coverage if rent goes down or up from time to time.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

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    • #3
      Thank you for that - however the landlord and tenant have agreed to a new fixed term tenancy agreement being prepared rather than rolling the existing agreement on. do we still have to formall end the existing AST before the new Tenancy agreement comes into force?

      thank you again

      Comment


      • #4
        Originally posted by vanandmatt View Post
        Thank you for that - however the landlord and tenant have agreed to a new fixed term tenancy agreement being prepared rather than rolling the existing agreement on. do we still have to formall end the existing AST before the new Tenancy agreement comes into force?

        thank you again
        No. New one impliedly replaces old one, as that's the parties' common intention- implied surrender ends old one on grant of new one.
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

        Comment

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