Has an AST been created?

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    Has an AST been created?

    I am considering buying a freehold restaurant. Above the restaurant is accomodation which the staff are currently using.

    The owner has adviced that the staff do not have an AST and the accommodation is not included in their Contract of Employment either. However, the owner has said that he is taking rent from the employees.

    Am I correct in thinking that because rent has been paid an AST has been created even though nothing has been put in writing?

    #2
    The law is that if premises are let for living in and there is no written agreement to the contrary, then the let is an AST.

    You are correct!

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      #3
      Are the staff staying when you take over the restaurant?
      All posts in good faith, but do not rely on them

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        #4
        I would continue the employment of the current employees, but I was planning to live above the restaurant myself initially.

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          #5
          Found this info:

          "EMPLOYEE "TENANTS" • An employee in occupation of premises belonging to his/her employer may be a tenant or a mere licensee (often referred to as a "service occupier"). A service occupier is an employee who occupies his/her employer's premises in order to perform his/her duties as an employee. • An employee is a service occupier if it is essential to the performance of his/her duties that he/she occupies particular premises, or if there is an express term in his/her contract of employment that he/she should so occupy and that by doing so he/she can better perform his/her duties as an employee. • A service occupancy will normally determine automatically on termination of the employee's employment. • If the foregoing does not apply and an employee occupies premises as a tenant, the ordinary principles of landlord and tenancy law will apply. The landlord can ensure that there is limited security of tenure, by granting an assured shorthold tenancy. If the tenancy is an ordinary assured tenancy, there is a (discretionary) ground for possession under the Housing Act 1988, relating to former employees"

          Its from http://www.cronerconsulting.co.uk/Cr...0Tenancies.pdf
          All posts in good faith, but do not rely on them

          * * * * * ** * * * * * * * * * * * *

          You can search the forums here:

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            #6
            Originally posted by Bel View Post
            Found this info:

            "EMPLOYEE "TENANTS" • An employee in occupation of premises belonging to his/her employer may be a tenant or a mere licensee (often referred to as a "service occupier"). A service occupier is an employee who occupies his/her employer's premises in order to perform his/her duties as an employee. • An employee is a service occupier if it is essential to the performance of his/her duties that he/she occupies particular premises, or if there is an express term in his/her contract of employment that he/she should so occupy and that by doing so he/she can better perform his/her duties as an employee. • A service occupancy will normally determine automatically on termination of the employee's employment. • If the foregoing does not apply and an employee occupies premises as a tenant, the ordinary principles of landlord and tenancy law will apply. The landlord can ensure that there is limited security of tenure, by granting an assured shorthold tenancy. If the tenancy is an ordinary assured tenancy, there is a (discretionary) ground for possession under the Housing Act 1988, relating to former employees"

            Its from http://www.cronerconsulting.co.uk/Cr...0Tenancies.pdf
            On the last point: discretionary ground 16 applies to AST as well as to SAT.
            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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