Assigning part of an AST

by Readers Question

10:45 AM, 16th February 2015
About 4 years ago

Assigning part of an AST

Make Text Bigger
Assigning part of an AST

My property has 4 students. One is dropping out of Uni. In the AST, he’s allowed to find a replacement provided the other 3 students approve the choice and I agree. Assigning part of an AST

However, what are the practicalities? What’s the best way to deal with the deposit? I intend to claim deductions from the person leaving as he leaves a bike in the hall (despite being asked not to), he’s not up to date with his rent, etc. I assume that if the student leaving is assigning, he is still responsible for the rent; can I insist that the newcomer pays me directly?

Finally, do I need new paperwork?

Thanks for any help.

Jilly G



Comments

Joe Bloggs

15:52 PM, 16th February 2015
About 4 years ago

we do a whole inventory checkout and new inventory again as otherwise the new tenant could say any damage occurred before he/she moved in. a lot of work. if its joint and several AST then all tenants are responsible for the deductions.

Sandra Savage-Fisher

17:43 PM, 16th February 2015
About 4 years ago

Presumably the tenancy agreement is for a joint and severally liable tenancy. It would be best to get a new AST signed. You will also need to get guarantors (if any) to sign again.

Unprotect the deposit, deal with any dilapidations at this point. Get a new inventory completed and secure the deposit in the name of the new tenants. Remember to issue prescribed information, again, with all the new tenants details.

Howard Michaels

19:33 PM, 16th February 2015
About 4 years ago

Sorry to disagree with others, but, if it is a joint and several AST with a right to assign, then you can only cancel the existing AST if they all agree. A better route is for all four existing tenants [the three staying and the one leaving] to enter into a Deed of Assignment with the four "new" tenants [the three staying and the new one coming in]. You can find simple such Deeds online and possibly from your deposit protection provider. Most Deeds have mutual indemnity clauses to prevent the new tenant claiming damage was done before they moved in, but check mit in the one you use. The deposit protection company should accept such a deed and issue you with a new certificate in the names of the new tenants [as above] without charge. Otherwise if you cancel the existing AST you will have to unprotect the deposit and then protect it in the "new" names and pay another fee. You can make a charge for the admin of doing all this.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

44% of landlords fear Right to Rent

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More