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unhappydisgustingWOW
21-03-2010, 15:37 PM
I'm considering buying a property with 2 sitting tenants (siblings) on an SPT, who seem to want to stay in the property for a very long time. One receives LHA which covers 40% of the rent. I plan to issue them with a new 6 month AST and then let it run into SPT for a good many years. Here are my AST questions:

1. AFAIK for whatever reason no deposit currently exists. Can an AST/SPT exist without a deposit and can I ask for them to pay one as part of my new AST?

2. The tenants have a dog each, and chickens at the bottom of the garden, which I would be OK with. Does each animal specifically need to be mentioned in the AST, and can I have the final say over any new pets they might want to live with?

3. What would happen if a tenant moved in another person or family member without my consent?

4. Can an AST/SPT be automatically succeeded in death by another family member/spouse/civil partner?

5. Is there a minimum amount of time you must leave between rent increases, and does a new AST have to be drawn for each increase?

6. Bit of a general one, but is anyone aware of mortgage lenders refusing to give BTL mortgages if the tenant is on LHA?


Would be v. grateful for answers to any one or all of the above. Ta. :)

tom999
21-03-2010, 16:07 PM
I'm considering buying a property with 2 sitting tenants (siblings) on an SPTWhen did the fixed term of their current tenancy begin?


...who seem to want to stay in the property for a very long time...I plan to issue them with a new 6 month AST...If they have security of tenure granted by an existing tenancy (e.g. which may not be an AST), it's unlikely they will agree to a new AST. Have you spoken to them directly about your proposal?

unhappydisgustingWOW
21-03-2010, 16:27 PM
When did the fixed term of their current tenancy begin?

2007. I have seen a copy of the AST. Worry not. :)

P.Pilcher
21-03-2010, 16:49 PM
1. In view of the tenant's apparent financial situation, getting a deposit out of them may well be difficult, it could also oblige you to evict these tenants if/when they refuse/find they are unable to pay.
2. This is up to you, but the entry in your new AST should state that permission will not be unreasonably witheld. As they are clearly animal lovers/owners and have been for some time, why bother. If you are going to apply such a condition, how are you going to enforce it - all you can do is to evict them which you can using section 21 without stating a reason.
3. The other person remains as a guest of the tenant with no rights as far as you are concerned. If you do evict, the bailiff will remove everybody found to be occupying the premises unless they hold a valid lease which is NOT the lease which is the subject of the possession order the bailiff is enforcing.
4. No.
5. Your new AST should be at the new rent which you have agreed with the tenant. It can be further increased by requiring them to agree to a new AST when the fixed term of the old one expires - using section 21 to evict them if no agreement can be reached. Or use section 13 when the lease once again becomes statutory periodic. One month's notice must be given of the increase, Information must be given on the statutory form as to how to appeal the increase if it is considered unreasonable and a further increase cannot be made for 12 months.
6. It is not unknown. Discussion with lender is sometimes necessary and sometimes it is necessary to kick the junior clerks with which you discuss the matter as they tend to slavishly enforce the rules written by their bosses. Try to talk to the bosses!

P.P.

unhappydisgustingWOW
21-03-2010, 17:56 PM
Thanks for that P.P.

In regard to question 1. please confirm that an AST/SPT would still be valid without a deposit in place. I guess it just leaves me uncovered for repairs/possible unpaid rent when they eventually leave?


2... (Pets) ...If you are going to apply such a condition, how are you going to enforce it - all you can do is to evict them which you can using section 21 without stating a reason.

I was thinking more that it would help me keep tabs on the pet situation, in case it ever started to escalate dramatically. I have friends who started with a dog and a couple of cats, and over the last 10 years have gradually built a full-on zoo, with all the excess wear & tear that brings.


3. The other person remains as a guest of the tenant with no rights as far as you are concerned.

Would it be grounds for eviction itself if I found out the Tenant had moved someone in without my consent? Or am I able to insist any person not named on the AST leaves?

I also have a new question:

7. If a tenant in the future became infirm, and the house became less practical for them to live in, and they requested permission for something like a stairlift, would I be obliged to agree to such an instillation?

westminster
21-03-2010, 19:00 PM
Thanks for that P.P.

In regard to question 1. please confirm that an AST/SPT would still be valid without a deposit in place. I guess it just leaves me uncovered for repairs/possible unpaid rent when they eventually leave?
A deposit is not compulsory. Tenancy is valid regardless of whether a deposit is paid or not.


Would it be grounds for eviction itself if I found out the Tenant had moved someone in without my consent? Or am I able to insist any person not named on the AST leaves?
You don't need any grounds to evict via s.21. No, you can't insist.


7. If a tenant in the future became infirm, and the house became less practical for them to live in, and they requested permission for something like a stairlift, would I be obliged to agree to such an instillation?
No.

Snorkerz
21-03-2010, 19:11 PM
With regard to pets, you can have a clause in the AST which says that pets are not allowed without written permission of th landlord (which will not unreasonably be witheld). However, the only way to enforce such a clause would be through eviction.

matthew_henson
21-03-2010, 19:19 PM
2007. I have seen a copy of the AST. Worry not. :)

Worth checking when they actually moved in, was it 2007 or if they are two aging siblings, many moons ago...? Find how long they have been on the electoral roll for example? what is the condition of the property? how updated is it?

The date they move in is critical, if it is 2007 then you have nothing to fear and everthing stated above applies but if it is actually 1977 then even if they have signed AST's since it make not a jot of difference they are the dreaded "regulated tenant". Just make sure as you cannot you evict them for just about any reason, if they are "first generation" tenant the tenancy can be inheritted and the rent is controlled to match council rents.

Most of your questions have been answers except the BLT mortgage one, generally they want to see the expected return vs. interest/repayments, that you have a decent deposit and that you could survive a few point increase in interest rates. They also generally insist on 6 or 12 month AST's only.

I confess if I saw to aging siblings I would be asking a lot of questions, take care

westminster
21-03-2010, 19:24 PM
The date they move in is critical, if it is 2007 then you have nothing to fear and everthing stated above applies but if it is actually 1977 then even if they have signed AST's since it make not a jot of difference they are the dreaded "regulated tenant".
Extremely good point. They may have been fooled into signing an AST by the current landlord, but this would not override a pre-existing regulated tenancy.

unhappydisgustingWOW
21-03-2010, 22:20 PM
They were the property's actual owners until 2007, whereupon they entered into a Sale & Rent Back scheme. So yes, the house has been in the family for many years, but they only became tenants in 2007.

Emma1973
21-03-2010, 23:05 PM
If they sold the house in 2007 how is one of them receiving LHA now? You cannot claim HB if you owned the home less than 5 years previously.

unhappydisgustingWOW
21-03-2010, 23:37 PM
Hmmm... good point, didn't realise that.

I've just rechecked the AST I've been shown. I've realised the one receiving LHA is not named on it, it's another sibling who I was told moved out sometime in the past year - I guess that's when the LHA sibling moved in. (I've looked round the property and this looks to be the case, plus the rent breakdown that was explained only mentioned the current 2 occupiers paying rent).

What rights might the person who 'moved out' have if I try to issue a new AST to the people who do appear to live there and pay rent?

jeffrey
22-03-2010, 09:43 AM
These questions are inherently unsuitable for answering in general terms. Get detailed legal advice asap.