Renewing Shorthold tenancy agreement

[jennyt]

Hi, I have one property and have a couple renting it on a standard 6-month shorthold tenancy agreement (printed from this website) - they now wish to renew the lease for a further 6 months (it is now 3 weeks before the end of their existing lease agreement). The lease is Guarantored by the parents of one of the tenants.

My questions are to renew the lease would I simply print and sign/get signed another shorthold agreement or would I need to get the Guarantor's forms filled in again including references and ID etc.

Secondly, the mother acting as a Guarantor for her daughter seemed to think that if the lease is renewed that they (the tenants) would only need to give 1-months notice to break the lease at any point - is this true and if so is it the case for myself(the landlord) to give one month's notice if I chose?

Thank you in advance for your help

[MSaxp]

The 1 month notice applies to tenancy agreements NOT renewed and going on a statutory periodic tenancy after the fixed term expires. if they sign a renewal, they are bound by the new fixed term and so are you.

Which makes me ask the question. Why do they want to renew? Why do you want to renew?

As for the guarantors agreement, it depends on what it said. If it covers renewals and periodic tenancies, then you are OK. if it is referring to the specific tenancy signed 6 months ago, you might need a new one. Not sure why you'd ask for new ids or new references.

[thesaint]

If they sign a new tenancy agreement, they are bound until the end of the fixed term, unless there is a break clause.
My advice is not to try and include a break clause.

There is no "one months" notice in any case.

[jennyt]

The 1 month notice applies to tenancy agreements NOT renewed and going on a statutory periodic tenancy after the fixed term expires. if they sign a renewal, they are bound by the new fixed term and so are you.

Which makes me ask the question. Why do they want to renew? Why do you want to renew?

As for the guarantors agreement, it depends on what it said. If it covers renewals and periodic tenancies, then you are OK. if it is referring to the specific tenancy signed 6 months ago, you might need a new one. Not sure why you'd ask for new ids or new references.

Thanks for the reply - I'm new to the letting's world (you may be able to tell!) and so have used a template and the resources from this great website - the lease is ending soon and they contacted me to renew the lease for a further six months, which I felt reasonable. So I guess we want to renew to give both parties a sense of reassurance that for six months they have a roof over their head and I have tenants - are you saying that if the lease were not renewed the lease would continue on a rolling monthly basis?

Re the Guarantors, I used the template from this site which recommended using ID to confirm the guarantor's details and confirms their ID, I'm guessing that this is a legal thing so that if the tenants did default I could go to the Gurantors and would have all the correct legal information to ensure payment?

Thanks also 'thesaint' point noted - I'd rather submit a new shorthold tenancy, do you think I'd need to have new gurantors forms completed?

[thesaint]

are you saying that if the lease were not renewed the lease would continue on a rolling monthly basis?

Correct.

Thanks also 'thesaint' point noted - I'd rather submit a new shorthold tenancy, do you think I'd need to have new gurantors forms completed?

I see no harm in doing another, but it may not be necessary depending on what your current one states.

[MSaxp]

If the guarantors are the same, why would you need to check the IDs again? Anyway I dont know what the guarantor's form on this site is, but you can check whether it mentions that its validity extends to renewals and periodic tenancies. It should be in the terms of the guarantor agreement.

As far as the rolling monthly basis yes. But nothing wrong with offering a new tenancy. If you do that, neither party can terminate it before the end of the fixed term, so the 1 or 2 month notices do not apply. (that excludes breaches of the tenancy agreement, i.e. rent arrears etc)

[oaktree]

First, well done to you for coming on here and asking the questions before attempting to carry out the renewal. If more people did that we would have more time for our day jobs!

Once the fixed term comes to an end you have two main options; first is to renew it on another fixed term, the tenant and you would be bound by the term of the new agreement - these are usually the same as the old agreement but you may agree some small changes.

The second option is statutory periodic tenancy - rolling monthly contract in other words. This way you don't need to renew anything, the tenancy just continues until either the landlord or tenant give notice to bring it to an end; the tenant must give one months notice, the landlord must give two months notice. (The dates for the notice are quite specific in this option so a bit more for you to read up on)

You should speak to the tenant and ask them what their plans are for the future; do they intend to stay long term or are they looking for a new property soon? if so perhaps an spt might be better than trying to hold them to an agreement they don't want to be in.

The guarantor may not wish to continue if the original agreement was only for 6 months; did the guarantor have to act at all during the first 6 months?

[Mrs Mug]

Re the Guarantors, I used the template from this site which recommended using ID to confirm the guarantor's details and confirms their ID, I'm guessing that this is a legal thing so that if the tenants did default I could go to the Gurantors and would have all the correct legal information to ensure payment?

The form in the "Documents" section of this forum is only a guarantor application form. It is not a "Deed of Guarantee". So if that is the only document given to your guarantors, it is invalid as a guarantee.

[Sad S]

Thanks for the reply - I'm new to the letting's world (you may be able to tell!)


Thanks also 'thesaint' point noted - I'd rather submit a new shorthold tenancy, do you think I'd need to have new gurantors forms completed?

If you enter into a new agreement, rather than continuing with the existing agreement as a statutory periodic tenancy, you may well find that you have to re-protect the tenants' deposit.

Check with whichever one of the three schemes you use.

If it is necessary to re-protect, you will have to re-issue the prescribed information to the tenants, and you may have to pay another fee to the scheme.