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data
27-03-2009, 13:13 PM
have a month to month agreement (after end on AST) tenant wants rent reduced by £100, whcih is ok, but i want to keep month to month agreement. anyway to reduce the rent while keeping current contract? am i allowed to take the rent as normal, but pay tenant back £100 everyomnth into his account?
Pls adivse.
Thanks

jeffrey
27-03-2009, 14:13 PM
have a month to month agreement (after end on AST) tenant wants rent reduced by £100, whcih is ok, but i want to keep month to month agreement. anyway to reduce the rent while keeping current contract? am i allowed to take the rent as normal, but pay tenant back £100 everyomnth into his account?
Your psot is garbled, but I think that the answer is this:
1. You are L.
2. T wants rent reduction.
3. The AST fixed-term letting is now continuing as a statutory periodic tenancy [s.5 of 1988 Act].
4. You can agree a reduction BUT it's not binding unless you + T execute a Supplemental Agreement as a Deed. This is because:
a. s.5 means that all existing AST clauses (except re Notice) still continue in force, inc. the rent amount; and
b. an informally-agreed reduction is not binding, for lack of contractual consideration.

Ericthelobster
27-03-2009, 14:22 PM
b. an informally-agreed reduction is not binding, for lack of contractual consideration.But when you say it wouldn't be binding, what are the practical implications of that here? Does it just mean that (in theory) the LL could turn round in a 6 months time and tell the tenant 'you're 6 x £100 in arrears'?

If so, then presumably it would be advisable for the tenant to insist on a Supplemental Agreement for his own protection, but there's no reason for the OP to raise it as an issue now?

jeffrey
27-03-2009, 15:29 PM
But when you say it wouldn't be binding, what are the practical implications of that here? Does it just mean that (in theory) the LL could turn round in a 6 months time and tell the tenant 'you're 6 x £100 in arrears'?

If so, then presumably it would be advisable for the tenant to insist on a Supplemental Agreement for his own protection, but there's no reason for the OP to raise it as an issue now?
Yes. However, OP asked how to do what was agreed with T- not how to con T.