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Making changes to an AST when it becomes periodic

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Comments

  • moromir
    moromir Posts: 1,854 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Lilibee wrote:
    We are asked to confirm that this is acceptable and then they will respond to 'confirm this renewal and any altered terms.'

    It's the bit in bold that is confusing me. I thought that any new terms (except a rent increase, using proper procedure) would require a new AST? Or can terms in the contract be altered when the fixed term expires and it becomes a statutory periodic tenancy?

    Terms can be altered under an SPT - I don't know the exact ins and outs of it but I vaguely remember something like -

    During the first year of the SPT - if LL proposes a new term and tenant disagrees, he can apply to rent assessment type committee who can judge whether or not it is reasonable and tenant must comply if the committee has gone in the LL's favour (or vacate) (ofc it would probably be quicker and easier for the LL to serve S21).

    After the first year of the SPT - the terms of the agreement can only be altered with the tenant's consent (no assessment committee after the first year).

    But you'd better check that out properly.
  • SpongeyC
    SpongeyC Posts: 7 Forumite
    edited 6 October 2011 at 7:40PM
    Not to hi-jack the thread but is it possible when a AST becomes periodic for a landlord to extend the notice period after the original contract had been signed and the fixed term had expired?

    IE: If both the tenant and the landlord signed an additional clause added to the bottom of an existing AST (which had become periodic) to increase the notice period from one month to two would this be valid.

    or would the statutory 1 month notice still apply?

    Cheers

    (Think the post above may of answered this, Beaten to it!!)
  • may_fair
    may_fair Posts: 713 Forumite
    SpongeyC wrote: »
    Not to hi-jack the thread but is it possible when a AST becomes periodic for a landlord to extend the notice period after the original contract had been signed and the fixed term had expired?

    IE: If both the tenant and the landlord signed an additional clause added to the bottom of an existing AST (which had become periodic) to increase the notice period from one month to two would this be valid.

    or would the statutory 1 month notice still apply?
    As I said above, any provision relating to notice doesn't carry through into a statutory periodic tenancy - so the answer is no, the 'additional clause' would have no effect and statutory notice provisions would apply.

    If the contract created a contractual periodic tenancy following on from the fixed term, however, then the provisions for notice in the contract would apply.
  • may_fair
    may_fair Posts: 713 Forumite
    moromir wrote: »
    Terms can be altered under an SPT - I don't know the exact ins and outs of it but I vaguely remember something like -

    During the first year of the SPT - if LL proposes a new term and tenant disagrees, he can apply to rent assessment type committee who can judge whether or not it is reasonable and tenant must comply if the committee has gone in the LL's favour (or vacate) (ofc it would probably be quicker and easier for the LL to serve S21).

    After the first year of the SPT - the terms of the agreement can only be altered with the tenant's consent (no assessment committee after the first year).

    But you'd better check that out properly.
    The only provision which the LL can unilaterally change during a SPT is the amount of rent.

    The landlord may serve a s.13 notice to increase the rent at any time during the SPT (unless the contract contains provisions for rent increases, in which case those provisions apply). He can do this no more than once a year, i.e. he can't serve a s.13 notice less than a year after the last rent increase under a previous s.13 notice.

    The tenant may challenge a s.13 notice by applying to a rent assessment committee.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    It's very simple. Your fixed term tenany will end and a periodic tenancy will arise automatically.

    There is no need to do or say anything. Indeed I would advise against asking questions, querying fees, clarifying their letter, raising issues.

    A short polite response to thank them for their letter and confirm your intention to continue in occupation on a periodic tenancy. Full stop.

    Anything more than that will lead to further exchanges of correspondance that are totally unnecessary and may lead to pressure to sign new contract/raise rent/change terms/whatever.

    Just move to periodic without further dialogue.
  • jjlandlord
    jjlandlord Posts: 5,099 Forumite
    may_fair wrote: »
    The only provision which the LL can unilaterally change during a SPT is the amount of rent.

    The landlord may serve a s.13 notice to increase the rent at any time during the SPT (unless the contract contains provisions for rent increases, in which case those provisions apply). He can do this no more than once a year, i.e. he can't serve a s.13 notice less than a year after the last rent increase under a previous s.13 notice.

    The tenant may challenge a s.13 notice by applying to a rent assessment committee.

    I think moromir is referring to section 6.
  • moromir
    moromir Posts: 1,854 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    jjlandlord wrote: »
    I think moromir is referring to section 6.

    I vaguely remember reading a case study related to a house converted into two flats - both of which were on SPT's, one was within its first year and one had been an SPT for two years - the property shared a gas boiler and the heating was included in the rent (on the original ast).

    The landlord was making enquiries into installing a boiler to each flat with the intention of asking each tenant to pay their own gas.

    There did seem to be provision to do this under certain regulations - provided the tenants were in agreement, if they weren't, the landlord could petition the one that had been an spt for less than a year to a committee of some kind, he couldn't do this with the one that had been an spt for over a year though and could only alter the terms with their consent.

    I've piqued my own interest now and I'm trying to find the study!
  • SpongeyC
    SpongeyC Posts: 7 Forumite
    edited 6 October 2011 at 10:49PM
    OK, sorry to raise another question specific to ourselves but our landlord a few months ago, before the end of our AST term emailed a sct 21, he said he would begin eviction proceedings in 2 months unless we agreed to the following term to be added in pen to our contract:

    “As of ************ the contract is extended on a rolling basis with the tenants giving 2 months notice when wishing to end contract”

    At the time we could not afford another 6month AST / or to be homeless, so we and the landlord signed under the new clause. Has this created a contractual periodic tenancy? We did not have much choice at the time but have since discovered our deposit isn't protected so the s21 was never valid anyway. We are now in a situation where we are trying to end our contract.

    So are we now bound by a 2 month notice period or a one month?

    We don't want to short change our LL but feel we have been treated quite poorly and that 2 months notice is unfair.

    Thanks and sorry again to hijack.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    SpongeyC wrote: »
    “As of ************ the contract is extended on a rolling basis with the tenants giving 2 months notice when wishing to end contract”

    ... Has this created a contractual periodic tenancy? ...

    So are we now bound by a 2 month notice period or a one month?
    Yes this is a periodic tenancy.

    No - periodic tenancies can be ended by the tenant giving one months notice, whatever the contract says (provided the month encompasses a full tenancy period).
  • jjlandlord
    jjlandlord Posts: 5,099 Forumite
    G_M wrote: »
    No - periodic tenancies can be ended by the tenant giving one months notice, whatever the contract says (provided the month encompasses a full tenancy period).

    Yes for statutory periodic tenancies, but what about contractual periodic tenancies (if that is what was created here)?
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