Moving from AST to periodic contractual tenancy

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    Moving from AST to periodic contractual tenancy


    Our tenants are currently on an assured shorthold tenancy, annual rent just under the £25k cut-off.

    After a year of no rent rise, we would now like to increase the rent (and keep the same tenants) when the current AST expires in September. Trouble is, that will take annual rent over £25k, so the new lease agreement will not be an AST.

    I'm pretty sure the tenants will be ok with the small rent rise we're planning, but they may be worried about loss of security of tenure etc with the move from an AST (they're solicitors and switched on).

    There seems to be little advice around as regards how to protect your interests as a landlord re possession in the new lease agreement when moving from an AST to a contractual tenancy, how the AST agreement should be amended, and how to handle the process generally - eg in terms of dealing with the tenants, notice of the change, etc.

    Any advice/experience of moving from an AST to a contractual tenancy with the same tenants would be much appreciated.

    Many thanks.

    Decide: do you + T want:
    a. a new fixed term; or
    b. a statutory continuation of existing AST? This latter will be available only if the rent remains at a rate not exceeding £25 000 p.a.

    L loses s.8/s.21 rights once rent rises above that level- but the Agreement is then read literally, so it's T who loses the 1988 Act's 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
    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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