Validity of an AST Agreement

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    Validity of an AST Agreement

    Hi
    In the Communities and Local Government Guide it states that a tenancy will not be an assured or shorthold tenancy if:
    a)no rent, or a very low[£250 or less p.a.?] or very high rent is charged;
    b)the tenancy is of a property let with more than two acres of agricultural land or a tenancy of an agricultural holding.
    Does anyone know if this would have applied in 1998 and, if so, what the legal position would be regarding an assured shorthold tenancy where both a and b applied i.e. peppercorn rent and several acres agricultural land.

    #2
    Originally posted by freeman View Post
    Hi
    In the Communities and Local Government Guide it states that a tenancy will not be an assured or shorthold tenancy if:
    a)no rent, or a very low[£250 or less p.a.?] or very high rent is charged;
    b)the tenancy is of a property let with more than two acres of agricultural land or a tenancy of an agricultural holding.
    Does anyone know if this would have applied in 1998
    Yes.

    and, if so, what the legal position would be regarding an assured shorthold tenancy where both a and b applied i.e. peppercorn rent and several acres agricultural land.
    Don't know, sorry. This webpage may possibly have some info relevant to the situation
    http://england.shelter.org.uk/get_ad...ural_tenancies

    Comment


      #3
      I think the low rent/low rateable value criterion has been tweaked a bit at times. However it has always been the case that a tenancy that includes more than two acres of agricultural land or is an agricultural holding cannot be an assured tenancy.

      Comment


        #4
        Thank you Westminster and Lawcruncher for your comments. If anyone else can add any further information I would be very grateful.

        Comment


          #5
          Yes. Paragraph 3 in Schedule 1 to the Housing Act 1988 deals with nil rent cases.

          Paragraph 3B reflects the Act's original wording and excludes from the Act cases where rent is less than two-thirds of RV. It covers lettings granted on/after 15 January 1989 (when the Act came into force) but on/before 31 March 1990. That was changed by new paragraph 3A (lettings granted on/after 1 April 1990) to rent limits: £1000 p.a. in Greater London or £250 p.a. elsewhere in E&W.
          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


            #6
            Originally posted by Lawcruncher View Post
            However it has always been the case that a tenancy that includes more than two acres of agricultural land or is an agricultural holding cannot be an assured tenancy.
            Yes. See paragraph 6 of Schedule 1:

            Tenancies of agricultural land

            6.(1) A tenancy under which agricultural land, exceeding two acres, is let together with the dwelling-house.

            (2) In this paragraph “agricultural land” has the meaning set out in section 26(3)(a) of the General Rate Act 1967 (exclusion of agricultural land and premises from liability for rating).
            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
              Thank you Jeffrey.

              If a Shorthold Tenancy Agreement is in existence where a peppercorn rent is payable and more than two acres of agricultural land is involved, does anyone know what would be the legal standing of the original agreement and the rights of both parties under it [this agreement has been in existence for several years]? I would be very interested in comments on this.

              Comment


                #8
                Originally posted by freeman View Post
                Thank you Jeffrey.

                If a Shorthold Tenancy Agreement is in existence where a peppercorn rent is payable and more than two acres of agricultural land is involved, does anyone know what would be the legal standing of the original agreement and the rights of both parties under it [this agreement has been in existence for several years]? I would be very interested in comments on this.
                It cannot be an AST (which is, I guess, what you meant) and it never was such either.
                The Agreement would nevertheless be valid, and would bind both parties, but it would be governed only by common-law rules about contracts.
                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


                  #9
                  Thank you Jeffrey. Could an eviction notice still be served then under this agreement?

                  Comment


                    #10
                    Originally posted by freeman View Post
                    Thank you Jeffrey. Could an eviction notice still be served then under this agreement?
                    Yes, if:
                    a. the Agreement says so; or
                    b. L has common-law powers of enforcement.
                    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
                      Thanks Jeffrey.

                      Comment

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