AST drifted into lease ... perhaps

[sophie2cu]

Hello everybody,

And a very happy New Year to you all.

I've had the same tenant for around 10 yrs. As this was such a good tenant, I agreed to give a longer tenancy agreement. However, I didn't know that the longest AST possible is 3 yrs. I've signed with my tenant for 4 yrs and I have learned that for lengths like this the agreement has to be construed as a lease.

Can somebody confirm? And if it is a lease, does that change a great deal?

Also, what happens if there's a problem with the tenant (rent not paid, for example) and can I get back to a shorter agreement at some time in the future?

I'm really confused about this - I never expected such a shock. But it's my own fault I suppose.

Many thanks

Sophie

[vinvin]

as far as a AST going into a lease or the longest period for an AST is 3 years is wrong!! YOU had no need to change anything at all, an AST is an AST. My tenants have been there for 5 years and still an AST.

At who's suggestion did you change i would assum his, and however nice they might be, you should have checked for your own protection. All my tenants have been nice and lovely!! but i still keep a professional distance. To avoid you getting sucked in.

Bit late now to try and close the door once the horse has bolted, however, under the circumstances i would invest a 150£ and see a solictor for an hour...............a specialist in Landlord and Tenant...........not just your local street corner general practictioner.

At least you will know where you stand

[Preston]

I've had the same tenant for around 10 yrs. As this was such a good tenant, I agreed to give a longer tenancy agreement. However, I didn't know that the longest AST possible is 3 yrs. I've signed with my tenant for 4 yrs and I have learned that for lengths like this the agreement has to be construed as a lease.

Can somebody confirm? And if it is a lease, does that change a great deal?

Also, what happens if there's a problem with the tenant (rent not paid, for example) and can I get back to a shorter agreement at some time in the future?

Hi

I think whoever is advising you is getting confused.

It is perfectly possible to have an AST of 4 years. However, under the Law of Property Act sections 52 and 54 any tenancy over 3 years in length must be set up by a deed. Deeds used to be created by "sealing" - applying a wax seal to the document, but these days it is sufficient if the document makes it clear that it is a deed; that it is signed by the parties; and that it signed by (usually) two witnesses.

If these requirements have not been met, then you will simply have created an ordinary periodic assured shorthold tenancy. It is possible that the tenant could make application to prevent you from evicting him or her during the first four years on the grounds that you both thought you were creating a 4 year fixed term, even though you have made some technical errors, but this would be whats called an "equitable" remedy (as opposed to a strict legal one) and so court would only grant the application if it felt it reasonable to do so.

So, if you haven't created the current tenancy by a deed, you have two main options:

1) let the current tenancy run its course. As with any other AST, you cannot gain possession in the first six months unless the tenant breaches any of the conditions in the agreement, but thereafter you can use the normal section 21 procedure at any time you wish or

2) if the tenant is happy to do so, you could agree a new AST between you for whatever period you wish; if you opt for a period of less than three years, then no deed is required; if 3 years or more, then a deed is required.

By the way, a tenancy is always a lease, no matter how long it is. Lease is simply another word for tenancy; there is a legal convention, however, that the term lease is usually used to refer to a tenancy of 21 years or more.

Hope this helps

Preston