How do I write out AST agreement

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  • How do I write out AST agreement

    Hello Everyone,

    Am a private landlord and have been one for over 10years. I have always found my own tenants and both my tenants and I have been very happy.

    My flat is on the market for Sale presently, my previous tenants gave notice and moved out. However as yet I await an offer. I have meanwhile found a tenants for letting who would like to move in on the 29th of December for 3 months. I am charging round about the market value for rental of £1050 (just to cover the mortgage) and taking a six weeks deposit.

    I intent to get her to sign an AST with a 2 month breakclause. We have both agreeded (this break-clause would be written into the contract) she would give a one month notice at the end of the 2 months and i on the other hand can give a 2 month notice to terminate after 4 months if my flat sale goes ahead otherwise the tenancy would continue until 6 months and onto a rolling contract whereby she can give 1 months notice and i two months. Is this correct legally ?

    I also intend to get her to sign a section 21 which would be dated for when ? April 28th 2012 or the end of the 6 months period June 28th 2012 ? after 3 months or 6 months

    I am also assuming i would need to put the deposit with say the DPS ? .This is fine by me

    My prospective tenant is herself not willing to be tide into a long term contract so is happy to be limited. And she is very happy to let my agent in for viewing with 24 hours notice.

    I would be truely grateful for any advise on this.

    Kike

  • #2
    IMO whilst a T can be granted for any period an AST requires a min term certain of 6 months, thus the earliest break clause should occur at 6 mo.
    T can vacate at any time during fixed term and terminate T if LL accepts a signed Deed of Surrender.Your LL notice provisions are in line with AST leg but T notice is not.
    If T wants reassurance consider a clause that states
    LL will accept Surrender of T during fixed term provided T gives 1 cal month Notice of intention to vacate. in writing and signs Deed of Surrender on termination of T.
    Thus you could have a vacant property at anytime after end of month 2 You could not start repo action until end of month 6
    You could require T to give 2 mo Notice during fixed term

    Comment


    • #3
      Originally posted by mariner View Post
      IMO whilst a T can be granted for any period an AST requires a min term certain of 6 months, thus the earliest break clause should occur at 6 mo.
      An AST does not require a minimum term.

      But the s.21 route cannot be used to recover possession during the first 6 month of the initial AST.
      Even if it could be used there is no guarantee that T vacates at expiry.

      If this situation I would carefully consider if it is worthwhile to get a new tenant for only 3 months.

      If you think it is, probably best not to offer a fixed term. And if T agrees to stay only for 3 months I would get her to serve you a notice to quit right after the tenancy has started.
      Of course notice guarantees that she will. (some people might suggest to have it backdated but...)

      Deposit must be protected in any case.

      Comment


      • #4
        She says she is happy for viewings but if she later changes her mind or decides that the place will look like a tip when people view there is very little, realistically, you can do about it (you'd need a court order to get in: Which purchaser will wait for one of those..)

        Best of luck! If I were selling think I'd prefer vacant, clean, tidy possession and loss of 3 months rent to reduced market (many people don't like buying with a tenant in..) and probably lower sale price.. [unless selling to another LL..]
        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...

        Comment


        • #5
          Originally posted by mariner View Post
          IMO whilst a T can be granted for any period an AST requires a min term certain of 6 months, thus the earliest break clause should occur at 6 mo.
          Not so, the break clause can end the tenancy on month 4 if required, allowing the landlord to apply for possession, The possession date can not be before the 6 month anniversary, but as it is usually around a 6 week process anyway that won't make much difference.


          Originally posted by jjlandlord View Post
          If this situation I would carefully consider if it is worthwhile to get a new tenant for only 3 months.
          I agree - buyer gagging to buy but can't get a mortgage due to property being tenanted (mortgage companies don't believe "it will be empty when we complete"). Some tenants will say what you want to hear before they move in - if you exercise your break clause and then have to go to court when they don't move out at 4 months you should get a possession date for the 6 month anniversary. However, if you then need bailiffs you may have to add a further 6 weeks before you get vacant possession, by which time your buyer may have found something more straightforward.

          Comment


          • #6
            Thanks all for the suggestions.

            Am I right in saying the suggestion is that I do write out the AST with a month break clause and then get my tenant to serve me a notice to quit right after the tenancy started.

            Great idea to use as suggested a clause to reassure the tenant and will do this but how do I get reassurance as Landlord ?

            The section 21 notice would be written and signed before moving in at the end of the 6
            Months

            I am trying to cover all grounds here.

            I do realise my tenant may not allow viewing as regular as agent or myself would wish but perhaps hoped she would at least stand by her word most of the time.

            Comment


            • #7
              A section 21 notice can not be served before the tenancy begins
              A section 21 notice can not be served before the deposit is protected
              A section 21 notice can not be served until the tenant has been given the deposit schemes 'prescribed information'.

              A notice to quit written by the tenant does not physically force the tenant to go on the date specified - you would still need a court order (though s8 or s21 would not be needed).

              I repeat that your purchaser (unless BTL) will not get a mortgage unless the property is empty.

              Comment


              • #8
                Truthfully. I cant keep up my mortgage without a temporary tenant. Perhaps in 3 months time my situation will improve but right now thats
                what i have to deal with.

                The market it abit slow now and usually picks up in feburary afer which i
                can take the risk of having an empty flat.

                I understand there is another tenant agreement a shortlet or holiday let
                would this be easier to use

                Comment


                • #9
                  Originally posted by Kiki View Post
                  I understand there is another tenant agreement a shortlet or holiday let
                  would this be easier to use
                  You could do it as a holiday let if it is fully furnished/equipped and meets with the local authorities standards for holiday homes - which are much more stringent than those for a regular AST. The property needs registering and (iirc) there is a maximum length of time that the place can be let to any one person.

                  Other than that, there are no alternatives to an AST - if the let falls in the broad description provided by the 1988 Housing Act, it is an AST.

                  However, one of our other members has made this 'interesting' suggestion.

                  7 month AST with the rent for the first 6 months at (say) £500 per month
                  rent from month 7 onwards, £5000 per month.

                  Comment


                  • #10
                    Originally posted by Snorkerz View Post
                    You could do it as a holiday let if it is fully furnished/equipped and meets with the local authorities standards for holiday homes - which are much more stringent than those for a regular AST. The property needs registering and (iirc) there is a maximum length of time that the place can be let to any one person.

                    Other than that, there are no alternatives to an AST - if the let falls in the broad description provided by the 1988 Housing Act, it is an AST.
                    It does not fall into the holiday let rules so i guess its an AST.

                    Comment


                    • #11
                      Originally posted by Snorkerz View Post
                      However, one of our other members has made this 'interesting' suggestion.

                      7 month AST with the rent for the first 6 months at (say) £500 per month
                      rent from month 7 onwards, £5000 per month.
                      This is an idea. Which I shall go away and think about. This way I hope it would be
                      incentive enough to send her off definately after month 6 at the very least.

                      Comment

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