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

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

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.