Landlord has asked me to set up a limited company for lease

Murphybear

PRAISETHESUN said:

caprikid1 said:

I have never heard of such a request.

Are you sure the landlord is not setting up a company and asking you to sign with the new company ? That would be more logical 

Even then the request for a CLT is strange. Limited companies are more than capable of letting out residential properties under AST terms. If ownership does change and a limited company becomes the LL instead, it still wouldn't change anything in the current AST nor compel OP to sign a new agreement.

When I was in the lettings business we had many corporate landlords on our books.  Most of the properties were flats above shops although we had a big house owned by the Salvation Army.  All the contracts were ASTs.  The big advantage for the tenants was that none of them ever got a S21 and repairs were always done quickly.  

FlorayG

Murphybear said:

PRAISETHESUN said:

caprikid1 said:

I have never heard of such a request.

Are you sure the landlord is not setting up a company and asking you to sign with the new company ? That would be more logical 

Even then the request for a CLT is strange. Limited companies are more than capable of letting out residential properties under AST terms. If ownership does change and a limited company becomes the LL instead, it still wouldn't change anything in the current AST nor compel OP to sign a new agreement.

When I was in the lettings business we had many corporate landlords on our books.  Most of the properties were flats above shops although we had a big house owned by the Salvation Army.  All the contracts were ASTs.  The big advantage for the tenants was that none of them ever got a S21 and repairs were always done quickly.  

The LL is asking the TENANT to set up a limited company to rent with, not the LL to rent from

theartfullodger

Murphybear said:

PRAISETHESUN said:

caprikid1 said:

I have never heard of such a request.

Are you sure the landlord is not setting up a company and asking you to sign with the new company ? That would be more logical 

Even then the request for a CLT is strange. Limited companies are more than capable of letting out residential properties under AST terms. If ownership does change and a limited company becomes the LL instead, it still wouldn't change anything in the current AST nor compel OP to sign a new agreement.

When I was in the lettings business we had many corporate landlords on our books.  Most of the properties were flats above shops although we had a big house owned by the Salvation Army.  All the contracts were ASTs.  The big advantage for the tenants was that none of them ever got a S21 and repairs were always done quickly.  

Landlord as ltd company still permits AST.  Tenant as ltd company precludes ASTs. 

Sigh...

saajan_12

caprikid1 said:

"Warning to letting agents - you can be prosecuted for giving sham licenses to tenants"

Reading around this, I think whatever tricks the landlord plays you will still potentially have an AST. I am not sure the courts would take well to this sort of shanigans.

I suspect any new tenant would run a mile !. Under no circumstances agree to this as the costs to fight such stupidity could be costly.

Indeed, when its so contrived as this is, there's a chance that a court would see through it and say its really an AST between the occupier and the LL, for example in an eviction scenario. However this is a risk and not one I think is worth it considering the OP is already in the property and hence has the upper hand (since it'd take time to evict now if OP refused). 

Time2count

The other thing to be wary of if you decided to agree is I don't think you'd be able to claim any help with rental costs if the tenancy agreement isn't in your name.
I might be wrong if you can prove the company you own has to pay but I doubt it.

Robbo66

A common Law Tenancy ONLY applies if you

.Live with your Landlord

Live in Purpose built Student accommodation

Live in temporary homeless accommodation

Rent from either the Military, police or fire service

Rent from the Crown and moved in before 1st Dec 2017

If your Landlord is none of the above your tenancy will be classed as an AST irrespective of what your Landlord wants to call it, if he took you to court for any reason that is mostly likely how a judge would rule.

caprikid1

Robbo66 said:

A common Law Tenancy ONLY applies if you

.Live with your Landlord

Live in Purpose built Student accommodation

Live in temporary homeless accommodation

Rent from either the Military, police or fire service

Rent from the Crown and moved in before 1st Dec 2017

If your Landlord is none of the above your tenancy will be classed as an AST irrespective of what your Landlord wants to call it, if he took you to court for any reason that is mostly likely how a judge would rule.

100% THIS 

brianposter

A simple "I have been advised not to........." would seem appropriate.