Is AST time limited

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  • Is AST time limited

    We have had a couple living in our granny flat under a 6 month shorthold tenancy for 6.5 years, we are happy with them as tenants but we have been told that an AST cannot go on for more than 7 years. Is this information correct as I am unable to find anything to confirm it. We are rather afraid of going to an assurred tenancy with its difficulty to remove should things go wrong in the future. Di

  • #2
    Originally posted by diwarren View Post
    We have had a couple living in our granny flat under a 6 month shorthold tenancy for 6.5 years, we are happy with them as tenants but we have been told that an AST cannot go on for more than 7 years. Is this information correct as I am unable to find anything to confirm it. We are rather afraid of going to an assurred tenancy with its difficulty to remove should things go wrong in the future. Di
    well i have never heard this story before, and as i have had many tenants for more than 10 years still on original 6 month assured shorthold tenancy agreeement, i would be shocked if this was true.
    Opinions given are mine, They are not necessarily correct, as the more I learn the less I know, You should always seek professional help.

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    • #3
      It isn't true as far as I know...the only issue I know about long AST's, and even then it only applies to long FIXED TERM AST's, is a potential issue with stamp duty.
      Any posts by myself are my opinion ONLY. They should never be taken as correct or factual without confirmation from a legal professional. All information is given without prejudice or liability.

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      • #4
        Just to clarify
        1. The initial fixed term should always be 3 years or fewer otherwise it would have to be executed as a deed (that's not a problem by the way).
        2. It can exist for as long as you want it to on a periodic tenancy as there is no time limit.
        3. If you wanted to offer somebody a long-term tenancy then you should execute a tenancy at common law (by deed), when you can make the tenant responsible for all internal and external repairs (and "put and keep in repair" clauses) provided it is in excess of 7 years fixed term.
        4. Stamp Duty is charged on the whole of the amount paid to the landlord by the tenant so periodic tenancies are not exempt! Once rent of (currently) £125,000 has been paid over in continuity of any tenancy then stamp duty becomes payable by the tenant, but this would take several years normally, and at least 5 under any AST.
        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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        • #5
          I just found this old thread.
          Besides previous comments re need for formal Deed and incidence of SDLT, there is a pitfall for T taking a longer-than-seven years tenancy. The legal interest which it creates is VOID unless T registers it (at HMLR) as a lease.
          In due course, HMG intends to reduce this seven-year rule to three years (to match the "Deed" point).
          Last edited by jeffrey; 08-07-2007, 18:30 PM.
          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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          • #6
            And most lenders insist on 12 months max. AST.

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