AST expiry- what happens; does tenancy continue?

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  • AST expiry- what happens; does tenancy continue?

    Hi,

    I am currently renting a house with two of my friends as part of an "assured shorthold tenancy agreement". The term we signed for was for 6 months and is due to expire on 4th May. In the agreement it states that one month's notice is required if a tenant wishes to leave at the end of the fixed term.

    My question is: what happens if the fixed term comes to an end, and the tenant hasn't given notice to leave and no new agreement has been signed? Does the agreement then become a contractual periodic tenancy? If so, what are the key rules for this agreement?

    Any advice offered would be greatly received.

    Paul

  • #2
    1. If T leaves on term expiry date, no Notice by T is needed (although it would be at least courteous to forewarn L).
    2. If T stays-on beyond term expiry date, a statutory periodic tenancy arises.
    3. The SPT's rules are just as for fixed term EXCEPT re termination procedures. Here's part of s.5- see text underlined in s.5(3)(e):

    5. Security of tenure.
    (1) An assured tenancy cannot be brought to an end by the landlord except by obtaining an order of the court in accordance with the following provisions of this Chapter or Chapter II below or, in the case of a fixed term tenancy which contains power for the landlord to determine the tenancy in certain circumstances, by the exercise of that power and, accordingly, the service by the landlord of a notice to quit shall be of no effect in relation to a periodic assured tenancy.

    (2) If an assured tenancy which is a fixed term tenancy comes to an end otherwise than by virtue of:
    (a) an order of the court, or
    (b) a surrender or other action on the part of the tenant,
    then, subject to section 7 and Chapter II below, the tenant shall be entitled to remain in possession of the dwelling-house let under that tenancy and, subject to subsection (4) below, his right to possession shall depend upon a periodic tenancy arising by virtue of this section.

    (3) The periodic tenancy referred to in subsection (2) above is one:
    (a) taking effect in possession immediately on the coming to an end of the fixed term tenancy;
    (b) deemed to have been granted by the person who was the landlord under the fixed term tenancy immediately before it came to an end to the person who was then the tenant under that tenancy;
    (c) under which the premises which are let are the same dwelling-house as was let under the fixed term tenancy;
    (d) under which the periods of the tenancy are the same as those for which rent was last payable under the fixed term tenancy; and
    (e) under which, subject to the following provisions of this Part of this Act, the other terms are the same as those of the fixed term tenancy immediately before it came to an end, except that any term which makes provision for determination by the landlord or the tenant shall not have effect while the tenancy remains an assured tenancy.


    (4) The periodic tenancy referred to in subsection (2) above shall not arise if, on the coming to an end of the fixed term tenancy, the tenant is entitled, by virtue of the grant of another tenancy, to possession of the same or substantially the same dwelling-house as was let to him under the fixed term 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).

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    • #3
      worth noting that all the tenants have to leave, I think.

      Comment


      • #4
        Originally posted by fthl View Post
        worth noting that all the tenants have to leave, I think.
        I'm not sure that I understand your post. If even only one of the joint tenants stays beyond term expiry, ALL remain bound by the SPT.
        It's only if they ALL leave on term expiry that no SPT ever starts; is that what you meant?
        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
          Hi,

          Thanks for the replies. Sorry if I was unclear.

          I meant that if a situation occurs where:

          a.) the tenants don't leave after the fixed term expires and
          b.) the landlord hasn't drawn up a new agreement

          does the agreement then become a SPT? If I have understood correctly, I am under the impression that it does.

          I didn't realise that if only one of the joint tenants left at the end of the fixed term then all are still bound by an SPT. Does this theoretically mean that the person who had left would still have to pay rent beyond the fixed term even if they weren't living there anymore?

          Thanks again for the advice so far.

          Comment


          • #6
            Originally posted by eca02gw View Post
            I meant that if a situation occurs where:

            a.) the tenants don't leave after the fixed term expires and
            b.) the landlord hasn't drawn up a new agreement

            does the agreement then become a SPT? If I have understood correctly, I am under the impression that it does.
            Yes, the AST continues in that case.

            Originally posted by eca02gw View Post
            I didn't realise that if only one of the joint tenants left at the end of the fixed term then all are still bound by an SPT. Does this theoretically mean that the person who had left would still have to pay rent beyond the fixed term even if they weren't living there anymore?
            Yes; even one who departed remains liable, since it's the same (multi-tenant) tenancy continuing.
            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


            • #7
              "It's only if they ALL leave on term expiry that no SPT ever starts; is that what you meant?"

              Yep.

              Comment

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