Questions about AST v periodic tenancy for landlords

MonkeyDr

Thank you in advance for your help.

I have a couple of questions about ASTs etc.

I have seen people on here advise that tenants can and should switch to a rolling 'periodic' tenancy after the initial AST runs out, and that they don't have to do anything (other than not give notice) to do so. And seen people advise that landlords should generally be happy with this too, assuming reliable tenants. Maybe lettings agents less so as they don't get fees...

In my years as a (reliable) tenant I always renewed an AST or moved out when it had finished, and I think there was always someone lined up to move in within a week or so. I now let out my London flat as I moved away (yes I have gas cert / pay tax / protected deposit / fix problems / don't intrude etc).

1. given that tenants may just stay there on a periodic tenancy (and would then need the court to end tenancy after valid section 21 etc etc) do most landlords hold off setting up a tenancy agreement for new tenants until the last ones have moved out?
2. what do you do if it is a condition of your BTL mortgage (as mine) that the property is let with an AST, such that if the tenants were to stay put and wait for the relevant procedures to be taken, you would be in breach of your mortgage conditions?

I have a very good relationship with my current tenants, and with their predecessors, and I think that I would take them at their word if they said they didn't want to stay at the end of the period (although I would prefer them to renew). It concerns me that they may have been reading some things on here and know that unless they have formally given notice they could just stay put...

I don't know if it makes a difference but my tenants are of the young professional sharers flavour and extremely unlikely to be needing council support etc to move on.

I welcome your thoughts.

MD

G_M

MonkeyDr wrote: »

1. given that tenants may just stay there on a periodic tenancy (and would then need the court to end tenancy after valid section 21 etc etc) do most landlords hold off setting up a tenancy agreement for new tenants until the last ones have moved out?
A landlord would be mad to sign a new tenancy agreement with a specified start date until he knew the previous tenancy had ended.
2. what do you do if it is a condition of your BTL mortgage (as mine) that the property is let with an AST, such that if the tenants were to stay put and wait for the relevant procedures to be taken, you would be in breach of your mortgage conditions?
A Statutory Periodic Tenancy is still an Assured Shorthold Tenancy. It is simply a periodic one instead of fixed term.

I have a very good relationship with my current tenants, and with their predecessors, and I think that I would take them at their word if they said they didn't want to stay at the end of the period (although I would prefer them to renew). It concerns me that they may have been reading some things on here and know that unless they have formally given notice they could just stay put...
well you will have to use your judgement and decide whether to take a risk.....

MD

Read

* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

and

Tenancies in Eng/Wales: Guides for landlords and tenants

Pixie5740

You shouldn't get a new tenant to sign a tenancy agreement until the current tenants are gone otherwise you'll end up in breach of contract if the current tenants don't move out and the new tenant can't move in. Most landlords get the new tenant to sign the tenancy agreement at the same time as picking up the keys.

Both a Contractual Periodic Tenancy and a Statutory Tenancy are AST.

Do you want your current tenants to move out at the end of the fixed term if they choose not to sign a new fixed term contract? Why go to the hassle if they are decent tenants that pay the rent on time?

Rollinghills

If you have a good relationship with the tenants then why not talk to them?

When the tenancy goes periodic it still remains an AST! There is no new tenancy agreement to sign so whatever was in the original AST agreement remains valid. It's just that the tenant does not have any fixed period when they are protected from rent increase and eviction (that's my understanding as a tenant on periodic AST).

If they don't want to sign a new agreement let it go periodic, make sure deposit is still protected and re-send prescribed information, ideally get them to sign it. Nothing to worry about with periodic tenancy, if anything it favours the landlord.

MonkeyDr

Many thanks for the replies.

I had not appreciated that a periodic tenancy was still an AST!

I don't want my tenants to move out (if they want to stay), but I feared that I may have to get them to eventually if they did not want to sign up for another fixed term AST, purely because otherwise I would be in breach of my mortgage.

Very helpful replies.

MD

theartfullodger

I very much doubt the mortgage company would know or care... £5 to an agreed housing charity if there was a case in the last 10 years of a mortgage lender taking expensive action or repossessing when a landlord had broken his agreement terms & allowed periodic: I routinely allow periodic, I prefer it, it gives me more security & flexibility .. on mortgaged properties.. (haven't read terms recently but fairly confident they preclude periodic..)

Gorra be an unfair contract term eh??

G_M

Rollinghills wrote: »

If they don't want to sign a new agreement let it go periodic, make sure deposit is still protected and re-send prescribed information, ideally get them to sign it. Nothing to worry about with periodic tenancy, if anything it favours the landlord.

Very good point.

Re-issue the Prescribed Information.

Read:

* Deposits (payment, protection and return)