Verbal tenancy agreement rights

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    Verbal tenancy agreement rights

    I recently purchased a flat with a tenant who has been in the property since 1991. He was a 'friend of the family' of a previous owner of the property so never signed a tenancy agreement of any kind. He believes he has a 'verbal assured tenancy agreement' and as such cannot be evicted from the property.

    Unlike many of the posts on this subject I am actually very happy with the current tenant. He pays his rent on time (albeit below the market value) and causes me no trouble so I am happy for him to stay as long as he wishes, especially since the property would need redecorating before it could be relet (20 year old colour schemes and kitchen don't really appeal to the modern market!). What I would like to do however is get a written tenancy agreement in place so that I can raise a mortgage on the property to replace said kitchen and some threadbare carpets.

    I suggested it to him and he refused as he is concerned that he may be evicted at a later date if he signed a contract. He is in his 70s and wants some security in his later years.

    Is he correct in thinking that he cannot be evicted due to having a verbal agreement? Or is it just a case of taking a bit longer. As I said I am definitely not looking to evict him but his belief that he cannot be evicted is the reason for him not signing a AST.

    Many thanks for any assistance.

    #2
    T may or may not be correct about Assured T, without proof you will never know Anyway you cannot force an existing T to sign a new TA, even if orig was verbal.
    Have you provided T with stat written notification of you being his new LL and address for service of Notices?
    With Assured Tenancies you can still raise the rent using s13 if needed.

    Why raise a morgage? There are improvement loans that can be raised, based on ability to pay.. A 70 yo may not want such improvements in his home of 25 yrs.
    Your LL resp to maintain the fabric of the property and ensure a safe environment remains. How about just replacing the threadbare carpets for now?

    I f you own other properties, even own home, you can raise a mortgage on them and apply the money raised to the letting business.

    Comment


      #3
      At

      Originally posted by SimonN View Post
      I recently purchased a flat with a tenant who has been in the property since 1991. .
      If form s20 (saying tenant has a AST) was not served at the start of the tenancy in 1991, Tenant has Assured Tenancy http://www.propertylawuk.net/assured...20notices.html

      AT has the right to challenge any rent increase via Residential Property Tribunal http://www.justice.gov.uk/tribunals/...-property#rent with in 28 days of a LL serving the correct notice ...

      Originally posted by SimonN View Post

      I suggested it to him and he refused as he is concerned that he may be evicted at a later date if he signed a contract. He is in his 70s and wants some security in his later years.
      AT already has security, it's called a Assured Tenancy (AT for short)

      Originally posted by SimonN View Post

      Is he correct in thinking that he cannot be evicted due to having a verbal agreement? Or is it just a case of taking a bit longer. As I said I am definitely not looking to evict him but his belief that he cannot be evicted is the reason for him not signing a AST.
      AT does not have to sign any think !

      Did you not check All this out before buying the property ....





      .
      Thunderbirds are go

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        #4
        Your tenant is reluctant to do something that is going to cost you money, and you want to pursue it? Madness.
        Allow tenants to protect their own deposits. I want free money when they do it wrong

        Comment


          #5
          Have a read of your own post and try to figure out whether the Tenant would feel at risk.

          You say you don't want to evict him, and you are happy for him to stay, but you want to do some work on the property because that would be needed before it could be re-let in the modern market.

          All the alarm bells are ringing, right? Even if you really don't want to evict him (taking it all at face value) the Tenant must see that he can do nothing and feel safe, or do something and potentially put himself in a risky position. It is a no-brainer for him to do nothing.

          Just wait until the old fella shuffles off the mortal coil or goes elsewhere willingly or by necessity... then do all the needed work prior to a re-let. Let it not cause you, or him, a headache for the time-being.

          Comment


            #6
            Many thanks for all the replies. Yes I know it seems odd that I am trying to improve the flat when there is no need to, and yes I know there are other options for raising finance. The flat in question is one of two in a building and the other flat is also in need of improvements which is why I am looking at a mortgage rather than a home improvements loan. And yes I did check it all out before buying the property which is why it was cheap and why I had to buy it with cash which wiped out all my savings! With a family and other financial commitments the lower interest rates and longer time to pay it off make a mortgage more appealing. Due to my job and I am often away with work so the knowledge that the flat is in a good condition and won't require any work whilst I am away is important for my peace of mind.
            Plan B is to split the flats into two separate leaseholds then raise a mortgage on the uninhabited flat but this is more expensive and complex than simply asking the existing tenant to sign an agreement! I appreciate that I cannot force him to sign or enter into an AST, and apologies if the post came across that way; it was very much a case of "I want to improve your living conditions, with no increase in rent but I need you to take up an AST in order to afford it". He said no, I said fine, then thought I would just double check each party's rights under an assured tenancy.

            Cheers, S

            Comment


              #7
              Even if he signs an AST it would not be an AST but be an AT.

              Your best bet is bribe him to go. If he were me I might want more than several 10s of£ks....
              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


                #8
                I don't want him to go!

                Comment


                  #9
                  Even if you did manage to get him to sign a new agreement therer would, and could, be no effect on his security of tenure. Plenty of unscrupulous landlords have tried and come to grief over it.

                  The court does not support a tenant signing away his rights, even where a cash premium has been paid.

                  I'm not accusing you of being unscrupulous.
                  I offer no guarantee that anything I say is correct. wysiwyg

                  Comment


                    #10
                    Originally posted by SimonN View Post
                    Due to my job and I am often away with work so the knowledge that the flat is in a good condition and won't require any work whilst I am away is important for my peace of mind.
                    I don't see how a new kitchen and re-paint will make any difference.
                    What you are saying simply doesn't add up.
                    Allow tenants to protect their own deposits. I want free money when they do it wrong

                    Comment

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