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What Happens after a year - 'Rental'

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Kuztardd
Kuztardd Posts: 153 Forumite
Part of the Furniture 10 Posts Name Dropper Combo Breaker
edited 17 December 2009 at 10:06PM in House buying, renting & selling
deleted thread
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Comments

  • Personally, my rental contract was for six months and then it switched over to a monthly contract that is effectively renewed upon payment of rent. Notice period is one month from me or two months from my landlady. I have been here for about three years now as there has been nothing available to buy in this area that I like or could afford. Some people though sign up to another 6 or 12 month contract when the previous one expires. You need to look at your tenancy agreement to find out what happens in your case.
  • If your landlord is prepared to extend the tenancy, then your agent should offer you an extension. This may be a further fixed term or it may be a periodic (month by month) extension. If you do not want to take on a further fixed term, you can request a periodic and your landlord may agree or not. If your landlord wants you to leave, he needs to serve you notice by the 31 Jan to leave on the 31 March. You may already have had this notice at some point during the tenancy.

    Most landlords are happy to offer periodic extensions.
  • prudryden
    prudryden Posts: 2,075 Forumite
    I am just today extending a contract for my tenants. What we are doing is attaching a "Memorandum to Assured Shorthold Tenancy" to the original contract. It states that the extended tenancy hereby created is subject in all respect to the same terms and conditions and provisions as those contained in the said original agreement save as amended above.
    This memorandum gives them an additional 12 month extension, but we are deleting the 6 month break clause. This allows each party to give two months notice to quit, without having to wait for 4 months before giving notice. Esentially, it has now become a periodic tenancy. The reason for the 12 month extension memorandum is that it allows me at the end of the 12th month to raise the rent, if need be.
    FREEDOM IS NOT FREE
  • franklee
    franklee Posts: 3,867 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    Kuztardd, Just to add that you automatically go on to a periodic tenancy when the fixed term ends if no further agreement is signed, so you can achieve a periodic tenancy by doing nothing at all. Still need to check that you haven't already been given notice though, you are looking for a Section 21 Notice Requiring Possession, some agents serve this at the start of the tenancy, although if served before the start it isn't valid :)
    prudryden wrote:
    The reason for the 12 month extension memorandum is that it allows me at the end of the 12th month to raise the rent, if need be.

    You can increase the rent using a Section 13 when on a periodic tenancy, but (I think) only once a year.
  • prudryden
    prudryden Posts: 2,075 Forumite
    franklee wrote:
    Kuztardd, Just to add that you automatically go on to a periodic tenancy when the fixed term ends if no further agreement is signed, so you can achieve a periodic tenancy by doing nothing at all. Still need to check that you haven't already been given notice though, you are looking for a Section 21 Notice Requiring Possession, some agents serve this at the start of the tenancy, although if served before the start it isn't valid :)



    You can increase the rent using a Section 13 when on a periodic tenancy, but (I think) only once a year.

    Thanks for that.
    FREEDOM IS NOT FREE
  • It's a separate document.
  • clutton_2
    clutton_2 Posts: 11,149 Forumite
    my section 21 forms part of my AST - it is on a single sheet, and is headed very boldly tho.
  • clutton, do you give the tenants the AST to read before they sign it? Does the tenancy commence immediately on signing? Is there any chance that a tenant could later claim that the s21 was given to them prior to the commencement of the tenancy? I am not saying that you should change your arrangements, but it has to be served after the tenancy has started as I'm sure you know.
  • Sybarite
    Sybarite Posts: 401 Forumite
    One thing to think about is that some LA use the issue/re-issuing of a contract to charge a fee - mine does and it's £70 each time, or an extra 2.5k P/A for the block - which seems like easy money for 10 pages.

    I've previously lapsed into periodic, as my LA are a bit useless, but they always chase it & always refuse to continue with the preiodic status (claiming on the LL's instructions of course) but I suspect he's charged a fee for this too, and it's simply an easy money generator for them.

    Sorry but my LA has made very cynical, due to some of their questionable behaviour.
    I do hope you're telling the truth?
  • franklee
    franklee Posts: 3,867 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    clutton, do you give the tenants the AST to read before they sign it? Does the tenancy commence immediately on signing? Is there any chance that a tenant could later claim that the s21 was given to them prior to the commencement of the tenancy? I am not saying that you should change your arrangements, but it has to be served after the tenancy has started as I'm sure you know.

    These are good points. Anyone doing this needs to be a bit careful. Notice is defined as served when the recipient can reasonably be expected to get it, there are rules that I never quite remember but it's something like if served during the day by hand then that day, if by post a couple of days after posting etc. So when and how do you give out the agreement containing the notice?

    Also when exactly does the tenancy start? Not on signing which is often done in advance. It is possible to have a tenancy without paperwork so I would have thought it's either on the day the AST states or on key handover. So plenty of scope to serve an S21 too soon if it forms part of an AST!
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