"AST" granted to limited company- is it valid at all?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • "AST" granted to limited company- is it valid at all?

    Hi Everyone,

    I am new to being a landlord & i have had a nightmare over the last 12 months.I need advise on a few things, any advise will be great.

    Firstly can you have a AST with a Limited company, if yes then all well & good if not is the company still abliged to comply with the conditions on the AST that they have signed.

    On the start of the AST i drew up an inventory which was signed by one of the directors accepting the property in imaculate condition. I carried out a mid-term inspection & sent a copy to them stating on a seperate letter whatever was damaged needed to be rectified by the end of the term & any other damages that may occur between now & then as i would not be renewing the AST.

    The AST was coming to an end so two weeks before i wrote to them asking them to make sure the property was vacant of any tenants placed there & also to make sure all damages, missing items, cleaning etc was done prior to the check out/handover.

    The day of the check out, when i got there (2 hours before meeting someone representing the company so i had my check out report completed) i was disgusted at the state of the place it was a mess. There were lots of things missing, damaged ect. I got the guy to sign the check out/handover report. I sent a copy of the report with a covering letter stating all that needed sorting,it has been a week & they have not replied. I wrote to them again today giving them untill the 16th April to respond otherwise i would take matters into my own hands to get things sorted then send copies of recipts to them for reibersment. In the mean time im am also loosing out as i have two prospective tenants waiting to move in. I dont have a deposit in had to cover the damages as they did not pay my last months rent even if i did that would not cover what needs to be done.

    I took photos at all times before check in, mid-term & also the check out/handover. Can someone please please give me some advise on what i should do next.

    Many Thanks

    New Landlord New Landlord

  • #2
    You can not issue a AST to a ltd company, you should have used a Standard Assured Tenancy agreement.
    However, I doubt that this alone would stop you pursuing them for the cost of any damage to the property.

    Comment


    • #3
      Originally posted by Colincbayley View Post
      You can not issue a AST to a ltd company, you should have used a Standard Assured Tenancy agreement.
      NO!

      A limited company cannot hold ANY tenancy under Housing Act 1988- neither AST nor SAT either.
      See section 1(1)(a): T (or each/all of joint T) must be an individual. A letting to a company is therefore governed by:
      a. Part II of LTA 1954 (if a business property); or
      b. common law contractual rules only.
      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


      • #4
        Originally posted by jeffrey View Post
        NO!

        A limited company cannot hold ANY tenancy under Housing Act 1988- neither AST nor SAT either.
        See section 1(1)(a): T (or each/all of joint T) must be an individual. A letting to a company is therefore governed by:
        a. Part II of LTA 1954 (if a business property); or
        b. common law contractual rules only.
        Got that wrong then didn't I !

        Learn something new every day.

        Comment


        • #5
          Originally posted by Colincbayley View Post
          Got that wrong then didn't I !

          Learn something new every day.
          Yup- but that's how we all learn too.
          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


          • #6
            Originally posted by jeffrey View Post
            NO!

            A limited company cannot hold ANY tenancy under Housing Act 1988- neither AST nor SAT either.
            See section 1(1)(a): T (or each/all of joint T) must be an individual. A letting to a company is therefore governed by:
            a. Part II of LTA 1954 (if a business property); or
            b. common law contractual rules only.
            Thanks for your replys.

            Jeffrey can you tell me where do i stand with regards to the damages caused to my property if i was to take them to a small claims court. As i stated before i have an check in, inventory, mid-term, check out reports with signatures & before & after photos. Will these be taken into concideration in court?

            As i was not advised correctely by the estate agent i used is there anything i can do against them?

            Comment


            • #7
              1. The tenancy is valid- just not an AST.
              2. T (the company) is bound by the obligations in it.
              3. Court will consider all relevant evidence.
              4. You may have rights against Agent for breach of contract (= failure to advise you properly, in performance of Agent's duty to you).
              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


              • #8
                Originally posted by jeffrey View Post
                1. The tenancy is valid- just not an AST.
                2. T (the company) is bound by the obligations in it.
                3. Court will consider all relevant evidence.
                4. You may have rights against Agent for breach of contract (= failure to advise you properly, in performance of Agent's duty to you).
                Thanks for your help Jeffrey. I think i will write them one last letter giving them a costing of the repairs etc & a date as to when i expect settlement & if this does not work then i will take court proceedings.

                Thanks again to you all especially Jeffrey you have been extreamly helpfull.

                I will keep you updated.

                Comment


                • #9
                  Hi Everyone,

                  I'm getting back on this as i have received an hearing date & i need further advise please as i have never been to court before i am very nervous & don't know what to expect.

                  As written on the hearing letter are the two things that I'm not sure on:

                  1)The documents & information sent to the court & each party should,where available, include:
                  a)the letter making the claim & any reply
                  What letter are they referring to?

                  2)The documents to be sent to the parties & the court must include the statements of all witnesses(including the parties themselves).
                  Does this meant i now need to write a statement & if so why?

                  Thanks for any advise you can give.

                  Comment


                  • #10
                    Hi Everyone once again,

                    Please, please, please advise as i am really nervous about this court hearing & i am trying to get all my documents together & i need to know more info on my last post above.

                    Many, many Thanks in advance.

                    Comment


                    • #11
                      The letter concerning the amount of your claim would be the breakdown of the cost of the damage that needs rectification presumably.

                      Yes, you need to write a witness statement and to submit it to the court and the other parties. It's your version of events. You shoudn't be nervous about attending a court; the judge will direct you and you should just tell it as it is.

                      All info regarding court claims can be found at www.courtservice.gov.uk
                      The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

                      Comment


                      • #12
                        [QUOTE=Paul_f;88656]The letter concerning the amount of your claim would be the breakdown of the cost of the damage that needs rectification presumably.

                        I have redecorated the flat & replaced missing items. Will the documents below be sufficient enough?

                        1:My statement of events from the beginning of the term to the end of the term.
                        2:Check in report.
                        3:Inventory.
                        4:Photos of points 2 & 3.
                        5:Mid-term inspection report.
                        6:Photos of point 5.
                        7:Check out report.
                        8:Photos of point 7.
                        9:Letters sent to the T(the company) with signed proof of delivery.
                        10:Invoices of works carried out & for items replaced.

                        Would it be an idea to send a copy of the AST highlighting the section;THE TENANT AGREES WITH THE LANDLORD?

                        P.S: Thanks to whoever reworded my title in the thread & also thanks to all that have replied. I now am feeling a little less nervous as i have started to put all my facts together.

                        Comment


                        • #13
                          [QUOTE=New Landlord New Landlord;88691]
                          Originally posted by Paul_f View Post
                          The letter concerning the amount of your claim would be the breakdown of the cost of the damage that needs rectification presumably.

                          I have redecorated the flat & replaced missing items. Will the documents below be sufficient enough?

                          1:My statement of events from the beginning of the term to the end of the term.
                          2:Check in report.
                          3:Inventory.
                          4:Photos of points 2 & 3.
                          5:Mid-term inspection report.
                          6:Photos of point 5.
                          7:Check out report.
                          8:Photos of point 7.
                          9:Letters sent to the T(the company) with signed proof of delivery.
                          10:Invoices of works carried out & for items replaced.

                          Would it be an idea to send a copy of the AST highlighting the section;THE TENANT AGREES WITH THE LANDLORD?

                          P.S: Thanks to whoever reworded my title in the thread & also thanks to all that have replied. I now am feeling a little less nervous as i have started to put all my facts together.
                          I think the above are excellent documents plus the signed tenancy agreement with pertinent highlights.

                          Good luck.
                          I have never had such a terrible tenant, etc., but I hope its your last experience like this.

                          Comment


                          • #14
                            [QUOTE=TenantsLuvMe;88694]
                            Originally posted by New Landlord New Landlord View Post

                            I think the above are excellent documents plus the signed tenancy agreement with pertinent highlights.

                            Good luck.
                            I have never had such a terrible tenant, etc., but I hope its your last experience like this.
                            Thanks TenantsLuvMe for your quick reply. You have just made me feel that much better & that less nervous.

                            This is why i come on this forum because of people like you & the others that have replied giving the help & advice that is vital & useful.

                            Comment


                            • #15
                              [QUOTE=New Landlord New Landlord;88697]
                              Originally posted by TenantsLuvMe View Post

                              Thanks TenantsLuvMe for your quick reply. You have just made me feel that much better & that less nervous.

                              This is why i come on this forum because of people like you & the others that have replied giving the help & advice that is vital & useful.

                              Happy to help.

                              If you have any letters that you have sent the tenant or any person representing the tenant concerning the condition of the property or their failure to observe the terms of the tenancy agreement, add those too to the list.

                              Comment

                              Latest Activity

                              Collapse

                              • if we haven't signed the renewal are we still liable?
                                Lexy333
                                Our 6 month short term assured tenancy agreement ended on the 2nd August. We are with a reputable agency. We were invited to renew for a further 6 months back in July and were asked to email our confirmation that we wish to renew in writing. This I did. We were sent the renewal tenancy to sign. We have...
                                22-08-2017, 14:00 PM
                              • Reply to if we haven't signed the renewal are we still liable?
                                mariner
                                I would say your original AST continues as SPT.
                                If now a new verbal AST, you may have a new fixed term and you cannot serve NTQ during fixed term (6 months?).
                                Talk to LL directly, rather than LA.
                                Why did you agree to a new AST, rather than request rolling over to SPT....
                                23-08-2017, 00:30 AM
                              • 6 year deposit claim
                                MaliaZ
                                Hi guys, I know that a tenant can claim a penalty on an unprotected deposit but I just wondered when the 6 year clock starts ticking.
                                22-08-2017, 16:43 PM
                              • Reply to 6 year deposit claim
                                mariner
                                As memory fades over time, can someone provide a 'sticky' for dates when key elements of LL&T Legislation changed? I believe Apr 2012 predates later deposit timescales.
                                23-08-2017, 00:08 AM
                              • NTQ during fixed term?
                                vpltd
                                Hi,
                                Can a LL issue a valid NTQ during the six-month fixed term of an AST agreement?
                                (A residential let in England.)
                                VPL.
                                11-08-2017, 14:53 PM
                              • Reply to NTQ during fixed term?
                                Wright76
                                It's worth noting that guidance is under part 4 where tenant obviously is given notice to end of a period and therefore apportionment would not be applicable.

                                The reference to the notice to quit ending the tenancy on the notice date does not change the fact that it obviously does however,...
                                22-08-2017, 23:24 PM
                              • Reply to NTQ during fixed term?
                                Wright76
                                I think thats exactly what the section I have just quoted confirms.

                                And thereafter, if you choose not to accept they are leaving as a result of the section 21 you must insist on a notice to quit or await a court ordering possession (where you will be ordered to apportion anyway)
                                ...
                                22-08-2017, 23:13 PM
                              • Reply to NTQ during fixed term?
                                mariner
                                A lot of energy has been expended in this debate. It has been suggested a LL has no need to take Court action if T apparently vacates after receiving a s21 but with no Notice. LL cannot safely assume has vacated without Court confirmation, to avoid a T allegation of 'illegal eviction'. Equally I would...
                                22-08-2017, 23:00 PM
                              • Reply to NTQ during fixed term?
                                Wright76
                                If someone could copy and paste section 21 (4) a and b (I'm really not technical!), the law seems to recognise that a tenancy CAN end as a result of a section 21 and before a possession hearing.

                                21(4)b........the tenancy could be brought to an end by notice to quit given by the landlord...
                                22-08-2017, 22:38 PM
                              • Reply to 6 year deposit claim
                                KTC
                                Assuming that the money originally paid had been used as a deposit for the single tenant tenancy, then 6 years and 30 days from when the 2012 tenancy started. And... if that was a fixed term tenancy, then 6 years and 30 days for any subseqent renwal and likewise from when it went periodic.
                                22-08-2017, 22:22 PM
                              Working...
                              X