Landlord might want me to sign new 12 month tenancy

funny_bones

Hi

I sold my property and moved into a rental property which started on 5/10/23. It’s a 9 month tenancy which then changes to a monthly periodic rolling tenancy. 

Due to my employment situation I had to pay 9 months rent upfront as I couldn’t pass the normal credit checks with being an agency worker. 

My landlady texted me this week asking if I wanted to sign a new 12 month tenancy from 5/7/24. Her reason being her mortgage is due for renewal in Sept and last time she renewed the mortgage, the mortgage provider insisted she had a 12 month tenancy with any tenant. 

I replied and told her I’m in process of buying a property and would not be signing a new 12 month tenancy. I told her, it should just change to a periodic rolling tenancy and I would just have to pay my rent to her on a monthly basis. 

She said she will speak to her mortgage advisor and see what they say. 

Is it normal for someone to be looking at mortgage renewal options now if it’s not due to end until Sept?

What are my options if she insists I sign a  new 12 month tenancy from 5/7/24?

Thanks in advance of any advice.

theartfullodger

News to me but with the HUGE range of mortgage lenders I'd be surprised if someone didn't have that requirement - but may be wrong.

She can't insist.  if you remain in occupation after end of your initial 9 months fixed term it automatically becomes a rolling, periodic, tenancy at a month at a time.  She cannot (legally may not) prevent this (Thatcher's 1988 Housing Act says so).

She is entitled to serve an s21 notice.  this does not end tenancy nor compel tenant to leave.  Only court then bailiffs can do that.  Probably take another 6 months 

MANY s21 notices are invalid (prerequisite paperwork invalid).

In your shoes I'd do nothing (at all) but remain on polite and friendly basis with landlord.

Artful, landlord since 2000

Grumpy_chap

funny_bones said:

Hi

I sold my property and moved into a rental property which started on 5/10/23. It’s a 9 month tenancy which then changes to a monthly periodic rolling tenancy. 

Due to my employment situation I had to pay 9 months rent upfront as I couldn’t pass the normal credit checks with being an agency worker. 

My landlady texted me this week asking if I wanted to sign a new 12 month tenancy from 5/7/24. Her reason being her mortgage is due for renewal in Sept and last time she renewed the mortgage, the mortgage provider insisted she had a 12 month tenancy with any tenant. 

I replied and told her I’m in process of buying a property and would not be signing a new 12 month tenancy. I told her, it should just change to a periodic rolling tenancy and I would just have to pay my rent to her on a monthly basis. 

She said she will speak to her mortgage advisor and see what they say. 

Is it normal for someone to be looking at mortgage renewal options now if it’s not due to end until Sept?

What are my options if she insists I sign a  new 12 month tenancy from 5/7/24?

Thanks in advance of any advice.

The LL has sent a message asking if you wish to sign a new 12-month tenancy.
No harm in the LL asking.

Your response that you don't wish to sign the 12-months and happy to revert to periodic once the initial term is expired is a perfectly reasonable and that is what should now happen.

The LL's mortgage is none of your concern and if the LL is needing to remortgage from September, there is insufficient time for the LL to complete the S21 process and have a different tenant by then with a 12-month contract, so your tenancy is better than anything else TBH.

As a LL, I do offer our tenants a 12-month contract each year as I feel it is a positive thing for the tenant to have knowledge that we are not intending to sell up or otherwise cease letting the property, there is a positive message to the tenant that we are comfortable with them remaining and, we feel, it gives the tenant some comfort about future security at the property.  
When the tenant has declined and chosen to go to periodic, that is equally fine as it is entirely the tenant's choice whether they wish to commit to the new tenancy or not.

theartfullodger

Giving tenant a new 12 month tenancy just makes it harder and slower to evict if there are problems.

Tenant usually more keen to comply with contract if a valid s21 may arrive the next day...

Others may hold alternative views

propertyrental

LL asked.

You declined.

Nothing further need be discussed. As you know, when your fixed term ends your tenancy becomes periodic.

LL's mortgage arrangements are none of your business, and none of your concern.

funny_bones

Thank you all for taking your time to answer.