View Full Version : Status of a memorandum at expiry of an AST

Tax Accountant
08-06-2005, 09:50 AM
When an AST expires, it can be replaced by a new AST or it reverts to a Statutory Periodic Tenancy.

However, I normally enter into a 'memorandum' with the tenant whereby it refers to the original AST and its period, and states that the AST is extended by 'period x' at a new rental of '£y'. When the extended period stated in the memorandum has expired, I simply draw up further extensions by way of new memorandums.

What is the legal status of these memorandums? Is the tenancy considered a new AST or does it count as having reverted to a Statutory Periodic Tenancy?

Are there any drawbacks in using the memorandums as opposed to new AST's ?

Is there a better / efficient way than this?

Replies would be appreciated.

Ramnik :confused:

08-06-2005, 10:43 AM
A memorandum is merely an extension of an exisiting AST and does not replace it; that can only be voided by drawing up a new agreement. If your memorandum extends the original term by, say 6 months, you may find it difficult to enforce the term if the tenant gives you a months notice to terminate, why? Because there is no valid reason for not having drawn up a new agreement. A memorandum is the lazy landlord's way of saying I can't be bothered to draw up a new agreement!

Drawing up a new agreement also allows you to vary any of the terms & conditions, whereas a memorandum won't allow you to do this!