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View Full Version : Changing from an Assured Shorthold Tenancy to a Contractual Tenancy



vanandmatt
26-03-2008, 14:52 PM
We are carrying out a rent review which has been agreed by the llord and tenant - and the rent now exceeds £25,000 per annum. Therefore the tenancy now qualifies as a Contractual tenancy agreement rather than the current AST. Do we need to bring the current AST to an end before we can start the new tenancy?

jeffrey
26-03-2008, 15:26 PM
We are carrying out a rent review which has been agreed by the llord and tenant - and the rent now exceeds £25,000 per annum. Therefore the tenancy now qualifies as a Contractual tenancy agreement rather than the current AST. Do we need to bring the current AST to an end before we can start the new tenancy?
1. The tenancy exists and can continue. There is no need to terminate and re-grant.
2. If the rent is above £25 000, at the outset or subsequently, the 1988 Act ceases to apply- but that does not affect the tenancy's validity.
3. See paragraph 2(1)(b) of Schedule 1 to 1988 Act. It is "...a tenancy under which the rent payable for the time being is payable at a rate exceeding £25 000 a year." I've added underlining to highlight that the tenancy could even slip in and out of 1988 coverage if rent goes down or up from time to time.

vanandmatt
26-03-2008, 15:34 PM
Thank you for that - however the landlord and tenant have agreed to a new fixed term tenancy agreement being prepared rather than rolling the existing agreement on. do we still have to formall end the existing AST before the new Tenancy agreement comes into force?

thank you again

jeffrey
26-03-2008, 15:58 PM
Thank you for that - however the landlord and tenant have agreed to a new fixed term tenancy agreement being prepared rather than rolling the existing agreement on. do we still have to formall end the existing AST before the new Tenancy agreement comes into force?

thank you again
No. New one impliedly replaces old one, as that's the parties' common intention- implied surrender ends old one on grant of new one.