Risk to landlord just before converting an AST to a SPT

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    Risk to landlord just before converting an AST to a SPT

    Hi
    My tenant wants to stay on after a 6 month AST that we are 4 months into at the moment - so the AST will convert to a SPT in December on a rolling monthly basis - I understand all that and it's fine.

    However I sense some risk to the landlord (me) here.

    As I understand it, having completed the AST and verbally indicated to me that he wishes to stay on by way of a SPT from Jan onwards there is in theory nothing stopping him changing his mind the day before the SPT is due to start, leaving me with an empty property. He would not have to give any notice at all [unlike during the SPT itself where it is one month as rent is due monthly, or during the AST where everyone know where they stand as the timings are written down in the contract in black and white].

    Is this correct and what can be done to mitigate my risk - there must be loads of similar cases out there...

    Thanks,

    #2
    It's the law. Not everything about Lettings always delights land lords, nor tenants.

    Cheers!
    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


      #3
      There is no unilateral action you can take to mitigate your risk.

      However, for the future what you can do is to grant a fixed term tenancy which continues as a periodic tenancy. You must though ensure that it is properly drafted and bear in mind that a six month tenancy to continue as a monthly periodic tenancy is a tenancy for a minimum of seven months.

      Comment


        #4
        Many thanks lawcruncher in sunny Spain, very grateful!

        I am now wondering how a fixed term tenancy which continues as a periodic tenancy differs from a standard off the shelf AST?

        thanks,

        Comment


          #5
          Originally posted by proj2016 View Post
          I am now wondering how a fixed term tenancy which continues as a contractual periodic tenancy differs from a standard off the shelf fixed term AST?
          The latter merely grants a fixed term tenancy. If the T is in occupation at fixed term expiry, then a statutory periodic tenancy will arise, under s.5 Housing Act 1988, replacing the expired fixed term tenancy. If the T vacates at fixed term expiry, then the SPT will not arise.

          The former includes additional provisions which say that the tenancy will continue on a contractual periodic basis following a fixed term, so it is irrespective of T being in occupation or not at fixed term expiry. As lawcruncher says, such a contract must be properly drafted by a lawyer.

          Comment


            #6
            It is as Westminster says. The statutory tenancy that follows a fixed term is a new tenancy. However a tenancy that starts as fixed with a provision that it continues as periodic is a single tenancy.

            Comment

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