Letting where rent exceeds £25 000 per year

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    Letting where rent exceeds £25 000 per year

    I am about to let my house for £30,000 pa, I understand that his has to be a bare contractural tenancy. Could someone tell me in what respects this differs from a standard AST. Would it give the tenant any extra rights?

    #2
    Originally posted by dlangston View Post
    I am about to let my house for £30,000 pa, I understand that his has to be a bare contractual tenancy. Could someone tell me in what respects this differs from a standard AST. Would it give the tenant any extra rights?
    A letting at > £25 000 per year cannot be an AST nor even an SAT. Paragraph 2(1)(b) of Schedule 1 to 1988 Act says so.

    Result: 1988 Act does not apply (so no s.8 or s.21 Notices either, nor any s.13 rent increases). 2004 Act does not apply (re rent protection schemes). Hence T has fewer rights.

    The common-law contractual tenancy is therefore implemented literally, with virtually no statutory overlay. The only Acts that apply nevertheless are ones like:
    a. the Protection from Eviction Act 1977;
    b. s.11 of LTA 1985; and
    c. the Notice provisions (L's name, address, etc.) of s.1/2/3 of LTA 1985 and s.47/48 of LTA 1987.
    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
      Many thanks for the lightning fast reply. Does this mean that I can write a standard letting tenancy and that the tenant will vacate at the end of the period. What notice would be needed to ask the tenant to leave if they turned out to be troublesome?

      Comment


        #4
        Originally posted by dlangston View Post
        Many thanks for the lightning fast reply. Does this mean that I can write a standard letting tenancy and that the tenant will vacate at the end of the period. What notice would be needed to ask the tenant to leave if they turned out to be troublesome?
        The format of your Letting Agreement can resemble an AST, if you want, but MINUS all statutory provisions and references. T wil have no legal rights at all other than what the TA states, so- for example- no right to a periodic tenancy on fixed term expiry. You could sue for vacant possession the very day after that expiry.

        If T broke any of the TA obligations, you could- again- use the termination procedures literally as written in it. For example, T fails to pay rent on due date or within 'grace' period; you as L could sue for rent or eviction (or both) the very next day.

        WARNING:
        Never, ever demand/collect/receive rent attributable to a period after term expiry- or you'll inadvertently start a new tenancy!
        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


          #5
          One more question on the same subject. Does the tenants deposit scheme apply to rentals over £25,000 pa.

          Comment


            #6
            Originally posted by dlangston View Post
            One more question on the same subject. Does the tenants deposit scheme apply to rentals over £25,000 pa.
            No. TDP only applies to "shorthold" tenancies (ie: ASTs).
            Health Warning


            I try my best to be accurate, but please bear in mind that some posts are written in a matter of seconds and often cannot be edited later on.

            All information contained in my posts is given without any assumption of responsibility on my part. This means that if you rely on my advice but it turns out to be wrong and you suffer losses (of any kind) as a result, then you cannot sue me.

            Comment


              #7
              Originally posted by dlangston View Post
              One more question on the same subject. Does the tenants deposit scheme apply to rentals over £25,000 pa.
              Agent46 is right- but I had already told you the answer! See second paragraph of post #2.
              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
                Agent46 is right- but I had already told you the answer! See second paragraph of post #2.
                I think you must have had a slip of the brain - you'd inadvertantly referred to "rent protection" instead of "deposit protection"
                Health Warning


                I try my best to be accurate, but please bear in mind that some posts are written in a matter of seconds and often cannot be edited later on.

                All information contained in my posts is given without any assumption of responsibility on my part. This means that if you rely on my advice but it turns out to be wrong and you suffer losses (of any kind) as a result, then you cannot sue me.

                Comment


                  #9
                  Originally posted by agent46 View Post
                  I think you must have had a slip of the brain - you'd inadvertantly referred to "rent protection" instead of "deposit protection"
                  Yes, I meant that. I mentioned the 2004 Act which does demand deposit protection.
                  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


                    #10
                    Jeffrey

                    I am interested in your warning --
                    "WARNING: Never, ever demand/collect/receive rent attributable to a period after term expiry- or you'll inadvertently start a new tenancy!"

                    Does this apply to ASTs also? Currently trying to evict my tenant (via s.21 notice (less than 25k a year of course)) due to them not wanting to up to market rate. Historically, they have paid by deposit to my bank and are current. What should I do if they occupy the flat after the expiry of the notice (as most likely they will) and pay money in for the next month to my bank account? (I don't want to create a new tenancy and therefore invalidate the s.21)

                    MB

                    Comment


                      #11
                      No. Contrast AST with non-Act tenancy (NAT).
                      Fixed-term AST can continue as periodic [s.5(2)]. The continuation's rules are same as fixed-term's [s.5(3)] except re termination rules.
                      Fixed-term NAT cannot continue, because s.5(2) does not apply. Rent paid after expiry must be referrable to a new letting of some sort.
                      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


                        #12
                        Jeffrey, thanks for that reply.

                        The AST has gone to periodic. Will receiving the extra rent extend it for another period and/or invalidate the s.21? Or is the receipt of additional rent irrelevant when looking at AST? What should I do with the months rent if it is paid? Of course I would like to just retain it as it will probably take month or two to evict tenant - is that OK?

                        MB

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