Granting a very long AST (to a family member)

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    Granting a very long AST (to a family member)

    For a variety of reasons a family member is considering renting out their leasehold flat to a cousin for a long period of time - to provide security they want to grant a very long AST, like 8 years (till kids have left home basically). They both want to do this for security and avoidance of argument in future - but 8 years is a long time and surely it can’t just be the same as a regular AST? Any thoughts?


    Just give them a regular 6 month AST and never evict them. It's that simple.


      If the property is mortgage under a BtL, then you should establish with your lender what absolute maximum term is permitted, many insist on a maximum of 1 year, a few 2years and a minority 3 years. 8 years is far too long and irrespective of whether this relative would qualify as a suitable person( many lenders restrict Letting to family) but rent increases have their own restrictions.


        So the cousin if never ever in 8 years going to want to move to a new job, a ne partner, for medical help with kid, for different schools, nor fall out with neighours etc etc etc And would then stick to 8 year contract and keep paying rent to end.

        As Mrs mug says, 6month AST then continue, monthly periodic, no paperwork, for ever, if everyone happy.

        A 8 year contract would need to be enacted as a deed plus registered with land registry.
        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...


          Originally posted by theartfullodger View Post
          As Mrs mug says, 6month AST then continue, monthly periodic, no paperwork, for ever, if everyone happy.
          Absolutely this.

          Imagine being in 2013 and giving someone an 8 year tenancy ending this year? A lot can happen in 8 years!

          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).


            Agree with all the above.

            General advice is not to let to family or friends.

            If doing it, a long AST doesn't seem helpful to me. If both parties (as family members) trust each other implicitly then there should be no need for the contract. If they don't, then they should not be entering into such a long-term agreement.
            There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.


              The flat's lease will likely prohibit lettings of more than a year (or class it as an assignment)


                Agreed. Have a fixed term of 6 months becoming periodic, but tell them they're secure there for as long as everyone is happy with the arrangement.


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