Tenancy signed for another year.

[126]

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.

[jeffrey]

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.

[126]

Hi Jeff,

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

Thanks,

126.

[jeffrey]

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.