New common law tenancy will change to AST in October?

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    New common law tenancy will change to AST in October?

    I understand that common law tenancies will change to AST's in October if the rent is under the new figure of £100,000 a year.
    I am just about to sign a CLT with a new tenant. Is there something I should write into it with regards to the changes? For example, the terms under which a tenant could be evicted will be totally different.
    Will I need to issue a new AST tenancy agreement or will the CLT be valid?

    #2
    By common law tenancy, I presume you mean a bare contractual tenancy (one not regulated by the various Housing Acts).

    I wouldn't try and predict or pre-empt what transitional provisions the change to the upper AST threshold may have - cross that bridge as and when you come to it. You risk making a bigger mess if you try to be clever in the agreement.

    Comment


      #3
      Originally posted by dominic View Post
      By common law tenancy, I presume you mean a bare contractual tenancy (one not regulated by the various Housing Acts).
      The wording on the tenancy just says
      'COMMON LAW TENANCY AGREEMENT'

      The tenancy is in one sole name but the rent is over £25,000

      Comment


        #4
        My LA is saying that existing tenancies won't change to AST's - it will only apply to new tenancies after October.

        I thought it affected existing tenancies.

        Can someone clarify?
        Thanks.

        Comment


          #5
          Letting agents: that will known reliable font of legal and legislative insight and knowledge....

          Comment


            #6
            Originally posted by dominic View Post
            Letting agents: that will known reliable font of legal and legislative insight and knowledge....


            ....and they're wrong?
            ....or right?

            Thanks

            Comment


              #7
              A residential letting at a yearly rent over £25 000 but not more than £100 000 that, when created, failed to be within the Housing Act 1988 due to the 'high rent' trigger will become covered by the Act from 1 October. It could not have been an AST (nor an SAT) when created- and so it could never have been made an SAT by use of Schedule 2A- so it will thereupon inevitably become an AST.
              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


                #8
                No - Dominic is just making oblique reference to certain letting agents who go about giving the impression that they are fully familiar with all aspects of landlord-tenant law. They are - they are fully familiar with the law which they make up themselves which they attempt to slavishly enforce on all their landlord clients as it is very much in the agents favour and helps them to make the amount of money out of the business that they feel they so richly deserve! Fortunately, we are around, landlords, tenants, agents who DO know landlord tenant law and our legal professional experts who can inform such people who enquire what the law really is!

                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.

                Comment


                  #9
                  In practical terms will anything need to be changed at that time?

                  Will I need to draw up a new tenancy agreement or will the existing one just become an AST?

                  Comment


                    #10
                    As I posted, an existing Letting Agreement will thereupon become an AST.
                    The change does not affect its validity- merely the category of tenancy which is deemed created.
                    The main uncertainty concerns protection of already-paid deposits. When paid, they were not AST deposits (so unprotectable); from 1 Oct., they are AST deposits even though paid before then. My view is that they need not be protected, as- when paid- they were not AST deposits.
                    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 P.Pilcher View Post
                      No - Dominic is just making oblique reference to certain letting agents who go about giving the impression that they are fully familiar with all aspects of landlord-tenant law. They are - they are fully familiar with the law which they make up themselves which they attempt to slavishly enforce on all their landlord clients as it is very much in the agents favour and helps them to make the amount of money out of the business that they feel they so richly deserve! Fortunately, we are around, landlords, tenants, agents who DO know landlord tenant law and our legal professional experts who can inform such people who enquire what the law really is!

                      P.P.
                      I will be eternally grateful to this forum for educating me - a novice landlord.
                      I am constantly amazed at how much better informed I now am than my LA the so called 'experts'!!

                      Comment

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