Keeping a non AST tenancy an AST

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  • Keeping a non AST tenancy an AST

    A letting agent has just suggested to me that, as my tenancy with rental income over 25000 per annum can not be an AST, he would provide a standard AST contract with a fixed term of one year less one day (364 days) which would then, legally, keep this tenancy covered by the housing act.

    Is this true, legal and acceptable practice?

  • #2
    Originally posted by htrj View Post
    A letting agent has just suggested to me that, as my tenancy with rental income over 25000 per annum can not be an AST, he would provide a standard AST contract with a fixed term of one year less one day (364 days) which would then, legally, keep this tenancy covered by the housing act.

    Is this true, legal and acceptable practice?
    Not true. Any letting @ over £25 000 per year cannot be an AST by definition; the 364 day thing is absolute nonsense.

    Read paragraph 2(1)(b) in Schedule 1 to the Housing Act 1988. It says:
    a. "...under which the rent payable for the time being is payable at a rate exceeding £25 000 a year"; not
    b. "...under which the rent is for a year and exceeds £25 000".

    It's the RATE of rent that counts! A letting for six months at a rent of £2300 per month (total rent of £13 800) would also be outside the Act.
    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
      Great!!! Another addition to my list of agents who don't know what they're doing.

      I think its worth adding, for the benefit of anyone venturing outside the realms of the Housing Act, 19 of the 20 agents I spoke to yesterday had no idea of the criteria required to create and AST. Beware.

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      • #4
        It's alright 'cause most of the posters on here know that!
        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.

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        • #5
          So why dont the agents?

          Comment


          • #6
            Originally posted by htrj View Post
            So why don't the agents?
            Because:
            a. they do not learn their job properly; or
            b. they do not use LZ, unlike your good self.
            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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