Tenancy signed for another year.

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    Tenancy signed for another year.

    Hi fellow LL:

    Just signed another 12 months with the foreign students (from Aug-07 to Aug-08).

    However, I will need to plan for putting advert again soon in Jan/Feb '08.

    Anyway, I have a question. If the students are agreed and wants to rent the property, could I sign an AST that starts in Sep '08 and take their deposit and put in DPS?

    Is there anything wrong with this?

    Thanks,

    126.

    #2
    Nothing wrong legally, no, but there are two potential pitfalls:
    1. Executing AST in Jan/Feb creates a binding contract there and then. Make sure that you receive a deposit, one way or another, and explain to T that AST is thereupon legally binding.
    2. Section 4(1)(d) of Land Registration Act 2002 makes registration compulsory for any lease/letting- no matter how short- that begins over three months after completion date. This is T's responsibility, not yours, and T will probably not bother registering- but, if T does register, you will need the entries removing when the lease/letting ends.
    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).

    Comment


      #3
      Hi Jeff,

      Are you able to expand point 2 above? I'm lost with that response.

      Thanks,

      126.

      Comment


        #4
        Originally posted by 126 View Post
        Hi Jeff,

        Are you able to expand point 2 above? I'm lost with that response.

        Thanks,

        126.
        [jeffrey, not 'jeff', please!]

        LRA 2002 requires leaseholder to register any new long lease (which was the law pre-Act) BUT also introduced need to register a 'future' lease, i.e. term beginning > 3 mths. from completion date. I have no idea why!
        So your T who signs-up now (or in Jan/Feb 2008) for a term starting in autumn 2008 ought to register this at HMLR. Most tenants won't, of course, but such registration will cause mayhem if:
        a. T forgets to delete it and departs out-of-contact when term expires; and
        b. L wants a nice clean registered title.
        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).

        Comment

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