New LL Posted May 3, 2011 Report Share Posted May 3, 2011 Would it be legal to grant an AST of a three bedroom house for a prolonged fixed term period of three years to a young working couple with two children and also to a third tenant known to the couple. The third tenant is a well off house owner in employment whom nevertheless will remain living in another town in his own separate home with his own family for the duration of the tenancy? And if the couple living in the let property falls into arrears for whatever reason would the tenant who lives in his own house with his own family be made responsible for paying the short fall in total rent for the duration of the 3 year fixed term? Can such liability be enforced in the courts? I would like to clarify that the total amount of rent charged for the house to the three tenants is no more than the total rent the couple would be expected to pay even if a third tenant was no named in the AST. Link to comment Share on other sites More sharing options...
Trenners Posted May 4, 2011 Report Share Posted May 4, 2011 Hi New LL, Simply - NO. To be a tenant on an AST - the property must be your PRIMARY residence. Although the couple would qualify - the third tenant would not. It sound like you want the 3rd tenant to act as guarantor for the couple .... so if they default on the rent ... the 3rd tenant can be legally pursued for the outstanding monies ...... If that is the case ... when not establish a guarantor contract with the 3rd tenant ... and then name that tenant on the "couples "tenancy agreement as guarantor. If the couple default - you could take legal action to recover funds from their guarantor. Good luck, Mark Link to comment Share on other sites More sharing options...
New LL Posted May 4, 2011 Author Report Share Posted May 4, 2011 Hi New LL, Simply - NO. To be a tenant on an AST - the property must be your PRIMARY residence. Although the couple would qualify - the third tenant would not. It sound like you want the 3rd tenant to act as guarantor for the couple .... so if they default on the rent ... the 3rd tenant can be legally pursued for the outstanding monies ...... If that is the case ... when not establish a guarantor contract with the 3rd tenant ... and then name that tenant on the "couples "tenancy agreement as guarantor. If the couple default - you could take legal action to recover funds from their guarantor. Good luck, Mark Thank you for your reply Mark. I did some further research on the subject and please find enclosed information. You are right in that I am trying to make the tenant a guarantor for a prolonged fixed term. In the first place I do not have to prepare a Deed of Guarantee and find a suitable witness. A deed of guarantee sounds good but they are not always water tight or convenient to prepare. A simple AST is the answer for me. HA 1988 section 1(1): (1)A tenancy under which a dwelling-house is let as a separate dwelling is for the purposes of this Act an assured tenancy if and so long as— (a)the tenant or, as the case may be, each of the joint tenants is an individual; and (b)the tenant or, as the case may be, at least one of the joint tenants occupies the dwelling-house as his only or principal home; and ©the tenancy is not one which, by virtue of subsection (2) or subsection (6) below, cannot be an assured tenancy Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.