Rules around length of ASTs

Malibusmash

My current Tenants one year AST is coming to an end and they wish to start another AST and have requested it to be for a further three years (so four years in total at the property).

However I'm sure I read somewhere on this site that an AST cannot be longer than two years and also not longer than three years once renewed. Is this correct?

jjlandlord

It's incorrect.

You are free to agree a 3 year term. In fact you are free to agree a term longer than 3 years, though there would be extra paperwork requirements (deed).

The question really is whether this is a wise move.

G_M

No.

An AST can be for any period.

If for 3+ years, the contract must be 'Executed as a Deed', but that is no big deal.

And it is not the total length of time the tenant lives there, but the length of each fixed term that matters. Many AST tenants stay for 5, 10 years or more.

There is also no reason you can't move to a SPT - again this can continue for indefinate years.

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?

Malibusmash

Thanks both - so I could potentially keep renewing their AST on a two year term each time, indefinitely - is that correct? (Tenants don't wish to move to an SPT, which is fine with me also).

Guest101

Yes, you can keep renewing every 2 years.

Are you charging them for the renewals - it could be why they wanted 3 year rather than 1.

Aside from that, if it works for both parties (IE you are secure financially for the next 2/3 years and dont need to sell) then go for it.

Malibusmash

Thanks Guest101 - no I never charge for any renewals, references or anything other than take a deposit (and protect it of course!!). I think they just want the security of a long-term AST, which I do too.

benjus

If you are letting under a residential mortgage with Consent to Let (CTL), there may be conditions imposed by your lender as to the length of ASTs you can use.

Malibusmash

Thanks benjus but no, it's a BTL mortgage.

jjlandlord

Malibusmash wrote: »

Thanks benjus but no, it's a BTL mortgage.

There may still be limitations on the duration of any fixed term tenancy (unless you know that there aren't).

Malibusmash

Oh really? I will check with my Lender in that case.