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Esther
28-04-2007, 16:06 PM
The article you show on FT.com regarding the new deposit scheme states
"any tenancy that costs more than £480 a week is exempt from the new rules".
We rent a house to students who sign one contract for 10 months of the year and the rent is over £480.00 a month. Would this make us exempt from the scheme?

Poppy35
28-04-2007, 17:08 PM
do you £480 per month or week - you have stated both?

lorenzo
28-04-2007, 18:13 PM
Must be per week as over this amount, it will take the tenancy to > 25k per annum and therefore cannot be an AST.

Cheers

jeffrey
29-04-2007, 21:26 PM
Must be per week as over this amount, it will take the tenancy to > 25k per annum and therefore cannot be an AST.

Cheers

480 x 52 = 24960, just under upper limit for 1988 Act to apply.

Esther
09-05-2007, 15:19 PM
Hi guys,

Sorry for the delay have been on hols.
As I stated previously we have a property which we rent for more than £480 per week. Does this mean we should not be drawing up an AST and also are we exempt from the TDS?

Esther

jeffrey
09-05-2007, 15:35 PM
Hi guys,

Sorry for the delay have been on hols.
As I stated previously we have a property which we rent for more than £480 per week. Does this mean we should not be drawing up an AST and also are we exempt from the TDS?

Esther

Yes and yes.

Start with paragraph 2 of Schedule 1 to Housing Act 1988.
A letting after 1 April 1990 at a rent > £25 000 pa is:
a. not capable of being an "assured tenancy; so
b. is not within the 1988 Act; so
c. is not subject to the TDS nonsense either.

It is best described as a common-law contractual tenancy. The layout of an AST could still be used BUT deleting inappropriate bits and clearly stating that it is not governed by the Housing Act 1988.

Esio Trot
09-05-2007, 15:39 PM
480 x 52 = 24960, just under upper limit for 1988 Act to apply.

480 / 7 * 365 = 25,028 just over upper limit methinks. ;)

jeffrey
09-05-2007, 15:57 PM
480 / 7 * 365 = 25,028 just over upper limit methinks. ;)

Nope. It's not a daily rent, is it? It falls due 52 times a year.
If it fell due 53 times, depending on how many rent days in the year, you could be right.

99sc1610
09-05-2007, 15:58 PM
May i ask why you are basing it on a full year when the original post stated that the students are only taking it on a 10month contract?

jeffrey
09-05-2007, 16:06 PM
May i ask why you are basing it on a full year when the original post stated that the students are only taking it on a 10month contract?

Because the Act does not say "rent for a year".
It says" ...under which the rent payable for the time being is payable at a RATE* exceeding £25 000 a year."

*- my capitals for emphasis.

Esther
10-05-2007, 14:17 PM
Jeffrey,

You wrote:

It is best described as a common-law contractual tenancy. The layout of an AST could still be used BUT deleting inappropriate bits and clearly stating that it is not governed by the Housing Act 1988.

Which bits do I delete? Presumably I need proper legal advice.

Esther

jeffrey
10-05-2007, 14:33 PM
Presumably so. You will otherwise have to decide which bits are AST-specific.