Maximum Length of an AST Agreement

[Cartman]

Hi,

Can anyone tell me what the maximum length of time you can grant an AST Agreement for please.

Thanks

[MrShed]

There is no maximum length of time. However, it is not really advisable to have any fixed term for longer than around a year, either for tenant or landlord. Can I ask what the circumstances are surrounding your question?

[davidjohnbutton]

It's actually 5 years - up to three years it can be done by ordinary contract, but for terms in excess of that, it must be by deed.

[Cartman]

Thanks. I can't seem to find any reference to the 5 year maximum term but knew about it needed to be created by deed on an AST over 3 years.

[MrShed]

Doh...thanks david....could you post me a link if you have one where it refers to that? All the info I could find said an AST could be of any length.

[PaulF]

There is no maximum length but it is meant to be for a relatively short period otherwise why would it be called an Assured Shorthold Tenancy?

These are the defining lengths of the term where matters can change:-

1. For a term of 3 years or under it does not have to be witnessed and can be drawn up by a landlord & tenant quite simply.
2. Over 3 years then it does have to be signed as a deed and witnessed.
3. If you want to grant a tenancy of more than 7 years then you should use a tenancy at common law as you could make a tenant responsible for all repairs if you wanted to! (quite common in commercial tenancies). You would need to ensure it does not come under the Landlord & Tenant Act 1954 or you could be stuck with the tenant.
4. For tenancies over 21 years then different rules apply.

The moral is therefore keep it short!

[davidjohnbutton]

I stand corrected - though when the original shorthold tenancies were created they were to be a maximum of 5 years - that seems to have been repealed or replaced because I too could find no references to it!

[settloe_99]

If someone has entered into a 10 year AST and it has been executed properly as a deed etc does that means the landlord can't use S21 to recover possession until the end of the fixed term?

[Lawcruncher]

If someone has entered into a 10 year AST and it has been executed properly as a deed etc does that means the landlord can't use S21 to recover possession until the end of the fixed term?

It does indeed - unless there is a landlord's break clause.

[jeffrey]

If someone has entered into a 10 year AST and it has been executed properly as a deed etc does that means the landlord can't use S21 to recover possession until the end of the fixed term?

It does indeed - unless there is a landlord's break clause.

That's true of any fixed-term AST, of course.

[unhappydisgustingWOW]

1. What might be the possible consequences of issuing a 6 month AST, which then just rolls on and on - eg for much longer than 5 years?

2. If the 5 years limit is aproaching, could you issue a new 6 month AST to the same tenants at 4y 11m, and let that roll for another 5 years?

[Snorkerz]

1. What might be the possible consequences of issuing a 6 month AST, which then just rolls on and on - eg for much longer than 5 years?

2. If the 5 years limit is aproaching, could you issue a new 6 month AST to the same tenants at 4y 11m, and let that roll for another 5 years?

The limits are on tenancy agreements, not tenancies. A SPT is, in effect, a new tenancy agreement every month so that won't be an issue.

[tom999]

1. What might be the possible consequences of issuing a 6 month AST, which then just rolls on and on - eg for much longer than 5 years?

The tenancy would simply continue (under the same terms as the original agreement) on a periodic basis after the initial fixed term.

2. If the 5 years limit is aproaching, could you issue a new 6 month AST to the same tenants at 4y 11m, and let that roll for another 5 years?

There is no 5 year limit for AST's in England or Wales -read post #6.

[unhappydisgustingWOW]

Ah ok, I was getting confused.

So I could issue a 6 month AST, allow it to fall into SPT and just let it keep rolling like that for 30 years, whilst still having all the rights to evict with 2 months notice (assuming no changes in law of course).

[Snorkerz]

Ah ok, I was getting confused.

So I could issue a 6 month AST, allow it to fall into SPT and just let it keep rolling like that for 30 years, whilst still having all the rights to evict with 2 months notice (assuming no changes in law of course).

Yes, but with SPT tenant has the right to go with one months notice - ie they're not tied in either.