SPT v CPT

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    SPT v CPT

    Can someone please confirm, as I see lots of sites confirming that when moving to a Statutory Periodic Tenancy the tenant is only required to serve notice in line with their rent payments ( normally monthly ), therefore one months notice, however, if it moves to a Contractual Periodic Tenancy and the tenants pay monthly, am I right that the notice period is still 2 months as per the original AST ?

    #2
    A contractual periodic tenancy is a continuation of the original tenancy and the terms persist, so the notice would be whatever was in the original tenancy agreement (which may not be two months).

    A statutory periodic tenancy is a new tenancy with the terms of the previous agreement carried forward except for the ones related to term and notice. If the tenancy periods are months, the tenant's notice is a minimum of a month ending on the last day of a tenancy period. Any site that tells you that the tenant's notice is a month in a periodic tenancy isn't a reliable source of information.
    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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      #3
      Thanks much appreciated - what if there is no notice period mentioned in the original AST ?

      Comment


        #4
        Then common law requirements, i.e. same as SPT.
        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.

        I do not answer questions through private messages which should be posted publicly on the forum.

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          #5
          How would I go about moving my tenant on to a contractual tenancy at the end of his AST, paperwork wise?

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            #6
            The Tenancy Agreement that is in place needs to have a clause stating that if the Tenancy continues without a formal renewal memorandum that it will create a Contractural Periodic Tenancy. If there is no clause then it creates an SPT. In both cases no paperwork is involved

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              #7
              Originally posted by londonlandlord2020 View Post
              The Tenancy Agreement that is in place needs to have a clause stating that if the Tenancy continues without a formal renewal memorandum that it will create a Contractural Periodic Tenancy.
              That would make the grant of the tenancy void for uncertainty.

              Comment


                #8
                Originally posted by Piptrees View Post
                How would I go about moving my tenant on to a contractual tenancy at the end of his AST, paperwork wise?
                If the tenant has a fixed term AST, a follow-up contractual tenancy has to be agreed, whether before or after the fixed term ends. There is no obligation on the tenant to agree and if he does not the fixed term will be followed by an SPT.

                What you can do is to grant a tenancy expressed to be for an initial period of, say, a year and which, one way or another, is expressed to continue from month to month (or as otherwise as required).

                Comment


                  #9
                  Granting a tenant a periodic tenancy requiring two months' notice may give rise to unexpected results. You may end up with a situation where the notice to quit (and accordingly a section 21(4) notice) must expire at the end of a two month tenancy period so that if you get the timing wrong nearly four months' notice will be needed and/or the notice is expressed to expire at the end of tte wrong month.

                  Best to keep things simple and got for a month's notice.

                  Comment


                    #10
                    Originally posted by Lawcruncher View Post
                    Granting a tenant a periodic tenancy requiring two months' notice may give rise to unexpected results. You may end up with a situation where the notice to quit (and accordingly a section 21(4) notice) must expire at the end of a two month tenancy period so that if you get the timing wrong nearly four months' notice will be needed and/or the notice is expressed to expire at the end of tte wrong month.
                    I don't understand how that could arise.

                    Could you give more details and/or an example?

                    Comment


                      #11
                      Periodic tenancy from the start mean notices under s21(4) and not s21(1). The Deregulation Act removed the requirement for notices under s21(4) to end on the last day of a period, but it hadn't remove the requirement for such notices not to end "earlier than the earliest day on which, ...., the tenancy could be brought to an end by a notice to quit given by the landlord on the same date". So two-monthly period, notice to quit just after the period start ends almost 4 months away affects landlord as much as tenants.
                      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.

                      I do not answer questions through private messages which should be posted publicly on the forum.

                      Comment


                        #12
                        Originally posted by KTC View Post
                        Periodic tenancy from the start mean notices under s21(4) and not s21(1). The Deregulation Act removed the requirement for notices under s21(4) to end on the last day of a period, but it hadn't remove the requirement for such notices not to end "earlier than the earliest day on which, ...., the tenancy could be brought to an end by a notice to quit given by the landlord on the same date". So two-monthly period, notice to quit just after the period start ends almost 4 months away affects landlord as much as tenants.
                        Rent is payable monthly. term is expressed "... to continue monthly thereafter until terminated in accordance with notice clause".
                        Notice is 2 months ending on last day of a tenancy period (i.e last day of any month)
                        Notice on day 1 of a rental period = just under 3 months' notice.

                        Comment


                          #13
                          I'm sure Lawcruncher will come along and correct me if I'm wrong but I'm not sure it's possible to have a periodic tenancy where the period is shorter than the length of notice required.
                          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.

                          I do not answer questions through private messages which should be posted publicly on the forum.

                          Comment


                            #14
                            Originally posted by KTC View Post
                            I'm not sure it's possible to have a periodic tenancy where the period is shorter than the length of notice required.
                            A weekly periodic tenancy requires a minimum of 4 weeks notice.
                            So technically it's possible.

                            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


                              #15
                              Originally posted by KTC View Post
                              I'm sure Lawcruncher will come along and correct me if I'm wrong but I'm not sure it's possible to have a periodic tenancy where the period is shorter than the length of notice required.
                              According to Megarry & Wade (1966 Edition) it is possible. In Re Threlfall (1880) the judge said:

                              But I know of no law or principle to prevent two persons agreeing that a yearly tenancy may be determined on whatever notice they like. There is freedom of contract in this respect.

                              Statute has of course intervened since 1880 specifying a minimum period of notice for certain tenancies. Subject to that, so far as I know the case is still good law and applies to any periodic tenancy.

                              However, having a period of notice shorter than the length of tenancy period and/or providing that the notice can expire at any time is not to be recommended. You need some tight drafting and even if the drafting is right there is a risk of getting the notice wrong. As in all things AST - keep it simple.

                              Comment

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