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View Full Version : What are 'Regulated' and/or 'Registered' tenancies?



Groundworks
01-11-2009, 21:24 PM
Hi There,

I've come across a number of properties that have registered and regulated tenancies, while the yields are low I am interested in the reversion value. I have a number of questions concerning these tenancies, these are as follows;

Can anyone tell me what are the differences, if any, between regulated and registered tenancies? I've searched the net and they appear to be the similar concepts but that one is created pre 1988 and the other post 1988. Is this true or are there other issues to consider?

Are there rules governing the a regulated tenancy that require the tenant to use the property as their main home? I've checked the Communities and Local Government PDF file on regulated tenancies and their seems to be no rule on this. Can anyone advise?

Is there any way to prevent succession of the tenancy?

Lastly, why are banks so reluctant to lend on these properties. I've found out that I have to put my own cash up for these. Hardly ideal! Can anyone suggest a lender that will provide finance on these investments?

Thanks

PaulF
02-11-2009, 12:23 PM
Hi There,

I've come across a number of properties that have registered and regulated tenancies, while the yields are low I am interested in the reversion value. I have a number of questions concerning these tenancies, these are as follows;

Can anyone tell me what are the differences, if any, between regulated and registered tenancies? I've searched the net and they appear to be the similar concepts but that one is created pre 1988 and the other post 1988. Is this true or are there other issues to consider? You are probably referring to Rent Act 1977 tenancies (pre 1989), and Assured Housing Act 1988 tenancies thereafter.

Are there rules governing the a regulated tenancy that require the tenant to use the property as their main home? Yes, AFAIK. I've checked the Communities and Local Government PDF file on regulated tenancies and their seems to be no rule on this. Can anyone advise?

Is there any way to prevent succession of the tenancy? Not if there are legal occupants and successors entitled to do so.

Lastly, why are banks so reluctant to lend on these properties. I've found out that I have to put my own cash up for these. Hardly ideal! Can anyone suggest a lender that will provide finance on these investments? Lenders are unlikely to lend as there is no definitive time when possession will be granted to you whilst tenants have a right of occupation. Having said that if you can source finance, there are bargains to be had providing you have time on your hands.

ThanksHope this helps.

Groundworks
03-11-2009, 20:20 PM
Hi Paul,

Thanks for the swift reply.

Just to clarify, both registered and regulated tenancies are essentially the same thing. The only difference being the point in time when they were created - is this correct?

Regarding the rules governing RT's where can I find the requirement that the tenant must be using it as their main home? I've searched long and far through my local council's website and as I mentioned in my previous post I checked the communities and local governments publication and can't seem to find it anywhere.

I appreciate your help and effort.

PaulF
03-11-2009, 20:48 PM
I'm not sure I follow you here. Are you suggesting the person who claims to be the tenant or tenants in fact are living elsewhere some of the time?

quarterday
03-11-2009, 20:56 PM
A regulated tenancy is one where the rent may be registered under the rent Act 1970 (as amended). Informally people talk about regulated and registered as being the same thing. Similarly people talk about statutory tenancies and controlled tenancies and also but more rarely now sitting tenants. There is a distinction between tenancies under the rent act that are still contractual and those are statutory, but it is incredibly unlikely that anyone will come across a tenancy under the rent act that is still contractual, rather than statutory. You might come across a regulated tenancy however that is unregistered; and if a first registration the rent capping rules do not apply!

Groundworks
03-11-2009, 23:53 PM
Hi Paul,

Yes this seems to be the case, I am aware that a registered tenant has another home which is used 50 per cent of the time. Would this contravene the rules / regulations?

jeffrey
04-11-2009, 11:49 AM
A regulated tenancy is one where the rent may be registered under the rent Act 1970 (as amended). Informally people talk about regulated and registered as being the same thing. Similarly people talk about statutory tenancies and controlled tenancies and also but more rarely now sitting tenants. There is a distinction between tenancies under the rent act that are still contractual and those are statutory, but it is incredibly unlikely that anyone will come across a tenancy under the rent act that is still contractual, rather than statutory. You might come across a regulated tenancy however that is unregistered; and if a first registration the rent capping rules do not apply!
1. That means "...the Rent Act 1977 as amended..."
2. In this context, what's 'registered' is not the property nor the tenancy but the rent.
3. To avoid confusion, use the Act's title to describe the type of tenancy- e.g. 'Rent Act 1977 tenancy', rather than 'regulated'.

Telometer
04-11-2009, 16:28 PM
Regarding the rules governing RT's where can I find the requirement that the tenant must be using it as their main home? I've searched long and far through my local council's website and as I mentioned in my previous post I checked the communities and local governments publication and can't seem to find it anywhere.

I have a feeling this may be down to case law. The Tenancy Relations Officer at Westminster however confirmed to me the advice I had from Regency Law on this point. We went to court on this basis, and evicted our Rent Act tenant who had taken a home elsewhere but wished to maintain a London pad.

jeffrey
04-11-2009, 17:27 PM
Regarding the rules governing RT's where can I find the requirement that the tenant must be using it as their main home? I've searched long and far through my local council's website and as I mentioned in my previous post I checked the communities and local governments publication and can't seem to find it anywhere.


Yes this seems to be the case, I am aware that a registered tenant has another home which is used 50 per cent of the time. Would this contravene the rules / regulations?
The Rent Act 1977 does not mention 'main residence', as far as I know. Here's s.2(1)-(3), with my underlining:

2. Statutory tenants and tenancies.

(1) Subject to this Part of this Act:
(a) after the termination of a protected tenancy of a dwelling-house the person who, immediately before that termination, was the protected tenant of the dwelling-house shall, if and so long as he occupies the dwelling-house as his residence, be the statutory tenant of it: and
(b) Part I of Schedule 1 to this Act shall have effect for determining what person (if any) is the statutory tenant of a dwelling-houseor, as the case may be, is entitled to an assured tenancy of a dwelling–house by succession at any time after the death of a person who, immediately before his death, was either a protected tenant of the dwelling-house or the statutory tenant of it by virtue of paragraph (a) above.

(2) In this Act a dwelling-house is referred to as subject to a statutory tenancy when there is a statutory tenant of it.

(3) In subsection (1)(a) above and in Part I of Schedule 1, the phrase “if and so long as he occupies the dwelling-house as his residence” shall be construed as it was immediately before the commencement of this Act (that is to say, in accordance with section 3(2) of the Rent Act 1968).