Renewal of AST or statutory periodic tenancy?

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  • Renewal of AST or statutory periodic tenancy?

    Hi, Just wondered if anyone can help. The orginally tenancy agreement for my tenants was for a 12 month term with a fixed 6 month break clause with eithr party being able to give to the other 2 months notice to expire at the end of a period. The tenancy term is up in December and my letting agent are saying it needs to be renewed for another 12 month term with either party being able to give to the other two months notice straight away on a rent day (no fixed term) to expire at the end of a period.

    1. Does that mean my tenancy will become a Statutory Periodic tenancy anway despite the renewal?

  • #2
    If you renew as suggested for "another 12 month term", then you have a new AST with a 12 month fixed term. This will only be useful if you (or your tenant) want the 12 month period to be more or less guaranteed ie. neither party can give notice within this period.
    If you do nothing the tenancy will, as you say, continue as a periodic tenancy. This is likely to be the best way forward for yourself and the tenant.

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    • #3
      Originally posted by joeyjoey View Post
      Does that mean my tenancy will become a Statutory Periodic tenancy anway despite the renewal?
      No- it's either one or the other.
      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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      • #4
        This is the usual way for agents to make a little more out of their landlord clients. As they actually have to do some work to renew an AST then a fee is justified. However, by doing absolutely nothing your tenancy agreement becomes statutory periodic and can continue indefinitely, you can increase the rent using section 13 and can give your tenant two months notice (ending on a rent day) as he can give you one month's notice if he/she wishes. Although most agents like to renew AST's for this reason, the only real reason to renew an AST is if your tenant would like longer than two months absolute security of tenure - and you are prepared to grant this.
        All but one of my AST's have now become statutory periodic - one of which has been in existence now for nine years and is likely to continue.

        P.P.
        Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

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        • #5
          So if I understand correctly, the renewal doesn't actually mean anything, as they aren't renewing for another fixed term, (it's just a 12 month term with either party being able to give to the other 2 months notice) it is just a way for the agent to get some more money out of me and the tenant.

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          • #6
            A renewal replaces the original AST. The renewal could be a new fixed term or a contractual periodic letting; either way, the old AST is ended.

            Alternatively, in the absence of a renewal, the old AST continues as a statutory periodic tenancy. See s.5(3) of the Hosuing Act 1988.
            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
              Originally posted by joeyjoey View Post
              So if I understand correctly, the renewal doesn't actually mean anything, as they aren't renewing for another fixed term, (it's just a 12 month term with either party being able to give to the other 2 months notice) it is just a way for the agent to get some more money out of me and the tenant.
              Just so Joey isn't further confused. If it becomes a statutory periodic tenancy it only requires tenant to give 1 months notice even if it states differently in the TA.
              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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              • #8
                Whether to renew for a new fixed term or let the existing term roll into a statutory periodic tenancy is really a business decision your agent should be consulting you on, and he should not be influenced by any profit element due to him.

                Comment


                • #9
                  Originally posted by joeyjoey View Post
                  So if I understand correctly, the renewal doesn't actually mean anything, as they aren't renewing for another fixed term, (it's just a 12 month term with either party being able to give to the other 2 months notice) it is just a way for the agent to get some more money out of me and the tenant.
                  I'm a tenant and my LA tried to get me to do this - I couldn't see the point in paying £46 when it would mean no additional security of tenure from my point of view. (In theory, if I'd been served notice within 6 months and dug my heels in they couldn't have gained a possession order, but I didn't really want to risk get into a legal spat with the LL.)

                  I just said I wanted to break clause taken out so that I actually had a 12 month fixed term and LA just checked LL was ok with this then went ahead and took it out. I'm sure you could get the break clause removed or amended to same as original TA (i.e. at 6 months) if you preferred.

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                  • #10
                    Originally posted by Pepzofio View Post
                    I'm a tenant and my LA tried to get me to do this.
                    Remember that the Letting Agent is L's, not yours.
                    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


                    • #11
                      Originally posted by Pepzofio View Post
                      I'm a tenant and my LA tried to get me to do this - I couldn't see the point in paying £46 when it would mean no additional security of tenure from my point of view. (In theory, if I'd been served notice within 6 months and dug my heels in they couldn't have gained a possession order, but I didn't really want to risk get into a legal spat with the LL.)

                      I just said I wanted to break clause taken out so that I actually had a 12 month fixed term and LA just checked LL was ok with this then went ahead and took it out. I'm sure you could get the break clause removed or amended to same as original TA (i.e. at 6 months) if you preferred.
                      Why don't you write directly to your landlord and ask if he has specifically instructed LA to draw up a new fixed term tenancy or whether he knows anything about it? If you don't have his address, just write (not phone) the agent for L's name & address and he has 21 days to respond otherwise he is committing a criminal offence.
                      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.

                      Comment


                      • #12
                        What does a renewal mean?

                        So what does this mean for LL's?

                        If the agreement rolls into statutory periodic and no new tenancy agreement is drawn up, does that mean it is NOT a renewal and therefore renewal fees cannot be levied?

                        This would be very interesting to know!





                        Originally posted by Paul_f View Post
                        Why don't you write directly to your landlord and ask if he has specifically instructed LA to draw up a new fixed term tenancy or whether he knows anything about it? If you don't have his address, just write (not phone) the agent for L's name & address and he has 21 days to respond otherwise he is committing a criminal offence.

                        Comment


                        • #13
                          Conflicted: This thread is 4 years old....

                          On what basis would you think renewal fees can be charged for a stat periodic tenancy happening, automatically, with nobody doing anything at all, as provided by the law... If anyone tried to charge me I'd thank them for their kind suggestion but decline....
                          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...

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