Can I create an AST with lodgers before I sell the property?

by Readers Question

8:58 AM, 9th November 2015
About 3 years ago

Can I create an AST with lodgers before I sell the property?

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Can I create an AST with lodgers before I sell the property?

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?can I

Regards
Alison



Comments

Mandy Thomson

18:20 PM, 9th November 2015
About 3 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

Romain Garcin

18:25 PM, 9th November 2015
About 3 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.


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