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Question Title: Term of the Tenancy
| Question: 252 |
| We would be interested in your views or indeed the law if it is the case of the following: It concerns the assured shorthold tenancy (AST). We have been informed that an AST cannot be longer than five years. Is this correct and if so what are the consequences from a landlord's point of view if the tenancy was to go beyond 5 years or whatever the maximum is, if any.
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| Answer: |
| We are not aware of any such restriction within the Housing Act 1988 for an AST. The following conditions in law may be considered when selecting the length of the term of a tenancy: 8 MONTHS - term not exceeding eight months being the condition for a holiday home letting - Ground 3 of Sched 2 of the Housing Act 1988. 12 MONTHS - being the term where stamp duty becomes applicable to furnished lettings at the higher rate. (shorter furnished lettings attract the 50p stamp duty rate and so many landlords let for 'One year less one day') - term not exceeding twelve months being the condition for operation of a Ground 4 letting (letting of premises which have been let in the previous twelve months to a student by a specified educational establishment). 3 YEARS - When a lease is for more than three years, it has to be created by deed (s52 (2) d and 54(2) of the Law of Property Act 1925). A deed must make it clear on its face that it is intended to be a deed, it must be witnessed by one or two people and if necessary sealed. For an agent to execute a deed, a power of attorney will be necessary. 7 YEARS - leases of term less than 7 years (or determinable within seven years of commencement at landlord's option) contain an implied covenant by the landlord as to repair of structure and exterior, etc.; covenants by the tenant to repair the same (structure and exterior etc.) are void. ( Landlord and Tenant Act 1985, s11).
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References:
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Pages:
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Hyperlinks:
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Letting Update Journal |
Oct 2001 page 27 |
letting-update-journal.html
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Letting Handbook |
Chapter 9 |
letting-handbook-and-factsheets.html
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For more information, discuss on the Forum
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