Acura Posted October 10, 2019 Report Share Posted October 10, 2019 Has anyone agreed to a 3 year TA without a break clause? Further to my post a few weeks ago about not being able to sell our house we have found tenants who want to take the property at the asking rate for 3 years, more than likely longer. Would you sign an agreement for that long? There’s always the risk of not being able to evict, but so far they are checking out to be exemplary professional tenants. Also, I cancelled my NLA membership after being with them for years. With only one property being let now (sold the rest) is it prudent to join again IYO? Thanks for your advice! Quote Link to comment Share on other sites More sharing options...
Richlist Posted October 10, 2019 Report Share Posted October 10, 2019 I've never let on a tenancy agreement for more than 12 months. Personally I wouldn't want to let for a 3 year term.....here's my thoughts :- * What would happen if you have a 3 year term with no break clause and the tenant finds that they need to leave at say 7 months into the contract......happens all the time. * A 3 year contract without a break clause means you can't regain possession or increase the rent when you want to. * Some mortgages have restrictions on length of tenancy agreement.......as do many leases. * You may decide that the advantage of a long term tenant outweighs the disadvantages.......but surely you would want a financial incentive from the tenant........who can decide to leave any time. Could or would the tenant be prepared to pay the outstanding rent for the outstanding term if they left early. You'd probably want a guarantor......but who would sign up for a 3 year commitment ? Far to risky for me. Quote Link to comment Share on other sites More sharing options...
Grampa Posted October 10, 2019 Report Share Posted October 10, 2019 Who wants the 3 years? You or the tenant? Quote Link to comment Share on other sites More sharing options...
Acura Posted October 10, 2019 Author Report Share Posted October 10, 2019 Exactly my thoughts RL. Thank you. The mortgage company is happy with 3 years. It’s a Let to Buy mortgage so we can crack on with our house build. Grampa, the tenants. Quote Link to comment Share on other sites More sharing options...
Melboy Posted October 11, 2019 Report Share Posted October 11, 2019 I wouldn't go for a 3 year contract. Far too long imo. 12 months max. and then a rolling contract. Both tenant and landlord should be happy with that arrangement. If you can give a reasonable assurance that you as the landlord are very unlikely to be selling up in the near future that should satisfy any tenant looking for a long term let. Quote Link to comment Share on other sites More sharing options...
Acura Posted October 11, 2019 Author Report Share Posted October 11, 2019 Thanks all. We’re going with a 12 month contract with a ‘right to renew’ clause subject to property inspections showing the house is in good shape and rent is paid on time. Bit of a risk they may not renew, but we all go through that. Also renewed NLA membership which officially means I’m out of LL retirement 😏 Quote Link to comment Share on other sites More sharing options...
Mortitia Posted October 11, 2019 Report Share Posted October 11, 2019 I only do a 6 month contract and allow periodic if all well. Way too risky to do 12 in my opinion and who wants arguments over break clauses that can't be enforced in the courts. Until new rules come in I'm sticking to my guns. Acura - why let your mortgage company tell you what to do regarding tenancies? Baffled! Quote Link to comment Share on other sites More sharing options...
Acura Posted October 11, 2019 Author Report Share Posted October 11, 2019 46 minutes ago, Mortitia said: Acura - why let your mortgage company tell you what to do regarding tenancies? Baffled! They aren’t Mortitia. Don’t think I said they were, but apologies if I was misleading. We have requested we meet the tenants too before paperwork is signed. They should be paying a deposit today and hopefully we’ll meet them tonight or early next week. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.