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Question Title: Ten year assured shorthold tenancy agreement
| Question: 356 |
| A new landlord has contacted me to manage a property that he has just bought. It has an existing tenant with a ten year tenancy agreement dated September 1993 which states that it is an assured shorthold tenancy agreement. The rent level has not changed since the start of the tenancy and the landlord wants me to serve a section 21 notice on the existing tenant and to find him another tenant who will pay a current market rent. The landlord doesn't have any other paperwork regarding the tenancy other than the agreement and I am not sure what I can do. What do you advise?
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| Answer: |
| This situation raises a number of issues. Firstly as the tenancy was created before 28th February 1997, it is important that the landlord holds a copy of the original section 20 notice issued to the tenant with the tenancy agreement, or can otherwise prove that an appropriate notice was served on the tenant prior to the start of the tenancy. The accelerated possession procedure requires that a copy of the notice is attached to the court paperwork whereas, using the standard possession procedure, a signed statement by the landlord or agent arranging the original tenancy might be sufficient. If the landlord cannot prove service of a section 20 notice to the satisfaction of the court, then it is likely that the court will deem the tenancy to be an ordinary assured tenancy despite the wording of the tenancy agreement. With an ordinary assured tenancy, the tenant would have far greater rights to stay at the property (section 21 does not apply) although the landlord would still be permitted to raise the rent to market levels. It follows that the landlord's other option should be explored first - that of raising the rent to market levels - before considering any possession action or replacement of the current tenant. This can be done either by voluntary agreement, or under the statutory procedure prescribed under section 13(2) of the Housing Act 1988. If the tenant does not agree to the increase, the matter will be referred to the Rent Assessment Committee for a determination.
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Letting Handbook |
Chapter 5 |
letting-handbook-and-factsheets.html
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Tenancies