Assignment of AST

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    Assignment of AST

    A tenant is on a periodic tenancy after the AST rolled over and has been for 3 years now. 6 months ago, T approached us and asked if we could add a 2nd T to the agreement. We said no, not necessary to do a new agreement, but that the 2nd T would be a permitted occupier under the existing tenancy.

    T has now informed us that he would like to terminate, but that 2nd T would like to remain in the property and have a new AST in their name.

    The guarantor has agreed to guarantee the new AST, T has agreed to give the existing deposit to the 2nd T.

    I would like to accept the arrangement as I would not have a void and not have the costs of finding a new tenant.

    My thoughts are as follows:
    T needs to give proper notice.
    T needs to give written notice that they are giving the deposit to 2nd T.
    2nd T would have to go through normal checks, etc.
    Guarantor would sign / be checked as usual.
    I would re-register the deposit in 2nd T's name, but list T as an interested party.
    2nd T's AST will start the day after expiration of T's notice period.

    Any possible pitfalls or concerns about doing the above? Anything I haven't thought about. I've never had payment problems with the existing tenant and I am quite happy to try and accommodate them.
    I offer my advice freely, but I am not an expert, solicitor or judge. It is simply my experience of being a landlord and what I have learnt along the way. I make no warranty for my opinion.

    #2
    Originally posted by Dinkum View Post
    My thoughts are as follows:
    T needs to give proper notice. Not necessarily you can agree to a mutual surrender without any formalities, but you might want to draw up a Deed of Surrender but it seems unnecessary here.
    T needs to give written notice that they are giving the deposit to 2nd T.
    2nd T would have to go through normal checks, etc. Best to treat the two deposit issues separately.
    Guarantor would sign / be checked as usual. Yes, sensible
    I would re-register the deposit in 2nd T's name, but list T as an interested party. I wouldn't do this as you are complicating matters. Keep it simple.
    2nd T's AST will start the day after expiration of T's notice period. As I've said this can be waived if you want it to.

    Any possible pitfalls or concerns about doing the above? Anything I haven't thought about. I've never had payment problems with the existing tenant and I am quite happy to try and accommodate them.
    Keep everything as simple as possible. Treat the end of one tenancy and the beginning of a new one as two completely separate entities.
    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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      #3
      Will you need to make any deposit deductions? Don't forget to record the condition of the property at the start of the new tenancy.

      Comment


        #4
        Originally posted by Snorkerz View Post
        Will you need to make any deposit deductions? Don't forget to record the condition of the property at the start of the new tenancy.
        As there is no inventory for this let that will stand up to arbitration, I won't be making any deductions. The property has been inspected quarterly and there is nothing of concern to date.

        Part of the condition of granting a new tenancy will be allowing our inventory clerk to visit the property and make a formal inventory at the change over. That should cover any future deductions.

        Thanks, Paul. KISS (Keep it simple, stupid) is will be then.
        I offer my advice freely, but I am not an expert, solicitor or judge. It is simply my experience of being a landlord and what I have learnt along the way. I make no warranty for my opinion.

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