Assured Shorthold Tennancy for 7 Years length?

pippamannequin

Hi, thanks for all your replies i really appreciate your help. x

poppy10 wrote: »

Can you post the exact wording that mentions the 7 years?

Tenancy Agreement for letting a furnished (bit confused as it isnt furnished-only just noticed this) dwellinghouse on an assured shorthold tenancy under part 1 of the Housing Act 1988

TERM: A fixed term of 7 (seven) years from 24th October 2007 (start date)

RENT: £800.00 per month PAYABLE in advance by equal monthly payments on the 24th Day of each month.


Ive also been unable to find any reference in the agreement to notice other than :

If the tenant-
1) Is at least fourteen days late in paying rent or any part of it, whether or not the rent has been formally demanded or

2) has broken any terms of the agreement

then, subject to any statutory provisions, the Landlord may recover possession of the Property and the tenancy will come to an end.

I must say it seems a very simple basic agreement, there isn't much in it at all, they have been absolutely great with me letting the property, it's a brand new build and I know I'm lucky to be getting the house, I'm just concerned that a term of 7 years gives me no get out whatsoever for such a long term and of course that it's there to make me wholly responsible for all the maintenance of the house.

pippamannequin

silvercar wrote: »

If the total rental over the whole tenancy length hits the stamp duty thresholds the tenant has to pay stamp duty on it. So on a 7 year lease if the rent exceeds £1488 a month, you would have to pay stamp duty.

One of the benefits of renting is the ability to easily move out. If you sign a 7 year tenancy with no break clause, you are committing for a long time. What will you do if the landlord is slow to address problems etc? What happens if your circumstances change and you want to move on?

Please tell me you are not being asked for a years rent in advance? I would suspect that the landlord is then offering anything to get some money off you. Also check that the landlord either doesn't have a mortgage or has the lenders permission to let for so long. Most lenders get twitchy on anything beyond 12 months.

Hi no, theyve been great with the everything, A months rent in advance and a months deposit, which they've assured me will be in a protected scheme that they'll let me have the details of within 14 days . I dont think there's a mortgage on the property, they have 11 properties they let and have just bought land to build 13 new houses, to sell some and let some.

BrixMorta

Tenancies over 3 years fall outside of the housing act and are not ast's. As said already they are contractual tenancies in the form of a deed.

pippamannequin

Evee2000 wrote: »

Okay, may have been mistaken (but I've definitely seen it somewhere and its gonna do my head in now!) However, found this article which might help you:

http://www.landlordzone.co.uk/residential_tenancies.htm

Hi, Thanks, i just found this on that site

An ordinary written agreement cannot be used for a tenancy exceeding three years in length. Tenancies for longer periods need a lease by deed.


Im confused!!!!!!!!!!

pippamannequin

BrixMorta wrote: »

Tenancies over 3 years fall outside of the housing act and are not ast's. As said already they are contractual tenancies in the form of a deed.

So does that basically make this agreement invalid? I.e Either party could get out of it at any time?

BrixMorta

I'm not a lawyer, but I suspect the general terms of the agreement may stand, however, the legal rights and procedures both landlord and tenant have will be different. For example the landlord will not be able to use a S21 to serve notice for possession or use clauses under a section 8 for the same purpose. It will fall under contractural law. As I see it the landlord really need to employ a solicitor or letting agent to draw up an agreement, much the same as a company agreement.

deary65

Yes a grant of an interest in land for three years or more must be by way of deed. There are others matters to consider not the least of which is (SDLT).

All grants of leases for a term of seven years or more must be notified to HM Revenue & Customs (HMRC) on a land transaction return unless there is no premium and no rent of any monetary value. Leases for less than seven years need not be notified unless SDLT is payable on either the premium or rental element - or both - at 1 per cent or more, ignoring any relief that is available.



Given the above i would consult a lawyer before taken possession of the land.

pippamannequin

I think I would be happier if it was for a period of 3 years, so think I will go back to them and say Ive discovered 3 years is the maximum length of an ast, and I'm happy for the tenancy to be that length and then reviewed again at the end of that term.

I do like the idea that i wont have to move again for a very long time, but sods law that if im tied into something so long something will happen and I'll regret it!

Guy_Montag

If they insist on 7 years, why not ask for a 6 month or annual break clause, you can always agree on 3 months' notice.

pippamannequin

Hi, Thanks for everyones advice, bought a tenancy agreement today and took it to the landlord, explained id found out about the three years maximum, apparently there had been a misunderstanding and they were happy for me to let the property for as long as i want and I opted to take 3 years with a break clause in it.