How to add new tenant on existing ast?

jee

Hi all
My tenant has asked me if he can add his friend to the existing tenancy agreement as he is finding it difficult to open a bank account without one. The friend is from a EU country and I have a copy of his passport.
What's the best way to do this? The deposit is in the lead tenant's name and is protected.
Thanks!

G_M

You could

a) rescind the existing AST, and issue a new one, for whatever length you agree (eg a new 6/12 months, or for whatever period remains on the the existing AST) in the joint names.

Return the deposit, take a new one, and register it.

b) Execute a Deed of Substitution, substituting the joint names in place of the single name, on the existing AST that would then continue as before.

The existing deposit is unaffected since the existing AST continues.

I assume you have referenced/credit checked the new tenant as best you can, and are happy with them?

pmlindyloo

it sounds as if the friend has only recently come to the UK.

I echo G_M's advice to reference and credit check the friend. Are they working?

By adding them to the tenancy agreement you are making the friend jointly liable for the rent. If he is jobless and hasn't been in the UK for 3 months then he would not be eligible for HB or JSA.

What would happen if the current tenant was unable to pay the rent? Or if he lost his job? He would only be entitled to the shared rate of local housing allowance which would probably not meet the cost of the rent.

I am sure everything is OK but just wanted to forewarn you.

jee

Thanks for the suggestions.
I've now been told it is a sibling not a friend and is already staying there. I'm wondering if I give permission to the tenant to take a lodger can he then give him a contract to show to a bank/future employer for proof of address. I myself have never rented or been a lodger so I don't know what banks/employers accept as proof.

HappyMJ

jee wrote: »

Thanks for the suggestions.
I've now been told it is a sibling not a friend and is already staying there. I'm wondering if I give permission to the tenant to take a lodger can he then give him a contract to show to a bank/future employer for proof of address. I myself have never rented or been a lodger so I don't know what banks/employers accept as proof.

Catch 22 isn't it...you can't get a tenancy without a bank account and you can't get a bank account without proof of address. Most people just rent a room to start with getting a lodger agreement with the lead tenant and a letter from the actual landlord allowing the lodger to stay with the tenant but not on the actual tenancy agreement. That's usually enough to get a bank account....along with passport or EU ID card.

If that isn't enough then they'll find a job then get a letter from the employer and also use that to get a basic bank account. Then they start building a credit history by opening basic store cards, then credit cards, a loan and eventually a mortgage.

Maybe they have a car. Registering it in the UK and insuring it gets loads of valuable paperwork.

jee

Thanks HappyMj hopefully that will be enough.