Can I create an AST with lodgers before I sell the property?
8:58 AM, 9th November 2015, 10 years ago
2
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Is it legal to create AST contracts whilst the landlord lives in the same property using the same kitchen etc, reason being I have lodgers at present but am selling the house with lodgers in situ , I would like to change the contracts over to AST before I sell the business?
Regards
Alison
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Member Since November 2013 - Comments: 1130 - Articles: 2
6:20 PM, 9th November 2015, About 10 years ago
Hi Alison
It’s not illegal to create an AST for a lodger – but if the landlord lives in and landlord and lodger share living accommodation (i.e. kitchen, bathroom and possibly living room) the AST will only be legally recognised as a lodger agreement. It’s the actual living arrangement and NOT the kind of contract drawn up that determines whether someone is a lodger or a tenant.
The bottom line is you cannot be a tenant in England or Wales if you share living accommodation with your landlord.
However, should the landlord permanently move out, the lodger would normally become a tenant because they would then have exclusive possession of the property.
In your particular situation, I would need more information to offer advice – is the buyer buying your property as a buy to let with the intention of being LIVE OUT LANDLORDS with your lodgers becoming their tenants under an AST?
Regards,
Mandy
Member Since August 2013 - Comments: 883
6:25 PM, 9th November 2015, About 10 years ago
Hi Alison,
If your lodger wishes to stay as AST tenant, and the buyer is fine with that, I would let them negotiate and come to an agreement between them.