Councils offering five year leases to landlords?

Councils offering five year leases to landlords?

0:02 AM, 23rd June 2023, About 11 months ago 21

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Hello, due to the Renters Reform Bill and renting my properties becoming unworkable I am considering my options. I’ve seen lots of councils offering five years leases to landlords on fully managed, guaranteed rent, fully repairing etc.

Does anyone know if this would constitute a ‘business tenancy’? I am concerned about which legislation would govern the lease. I.e. the Landlords and Tenant Act 1954? Or something else?

I was going to get hold of a lease for a solicitor to review.

Thanks,

Nick


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Comments

Rajeev Kanwar

21:40 PM, 23rd June 2023, About 11 months ago

Dear friend my recommendation is stay clear away from council leasing or renting to local councils , just like Nikki Palmer has said .
It is not worth the contract its written in!

Judith Wordsworth

9:09 AM, 24th June 2023, About 11 months ago

Reply to the comment left by Beaver at 23/06/2023 - 14:38
It wasn’t any government that “changed the law” but the High Court

Jules Azeez

9:12 AM, 24th June 2023, About 11 months ago

I would steer clear.
I rented a property on a guaranteed rent for 5 years which is due to end Jan 24.

I have now been informed that to get the property back I need to take step to evict the tenant as the council are not handing properties back!!

Badger

10:31 AM, 24th June 2023, About 11 months ago

"I’ve seen lots of councils offering five years leases to landlords on fully managed, guaranteed rent, fully repairing etc."

Just say (shout!) "NO"!

"Get thee behind me Satan!"

Like others have said, contemplating getting into bed with a council is a VERY bad idea as you will end up thoroughly shafted.

Learn from the pain of others.

Beaver

10:43 AM, 26th June 2023, About 11 months ago

Reply to the comment left by Judith Wordsworth at 24/06/2023 - 09:09
That's interesting. Do you have details?

Julesgflawyer

11:03 AM, 26th June 2023, About 11 months ago

In answer to the original question. It will not be a business tenancy (L&TA 1954) because the Council does not "occupy" the premises for the purposes of the Council's business. At least not usually.

Rodders H

0:00 AM, 27th June 2023, About 11 months ago

Your contract will be with the agent. It won’t be an AST.

He will service it (collect money and then pass on to you) so that they maintain arms length distance.

Nick Van Hoogstraten

13:13 PM, 27th June 2023, About 11 months ago

Reply to the comment left by Jules Azeez at 24/06/2023 - 09:12
So you have a contract with a council. Now you have to evict the people living there who you have no contractual relationship with? I assume the council are still paying the rent?

Nick Van Hoogstraten

13:17 PM, 27th June 2023, About 11 months ago

Reply to the comment left by Julesgflawyer at 26/06/2023 - 11:03
I was thinking that their 'business' with the premises would be providing accommodation? My initial query surrounds concerns 'security of tenure' an opting out the the provisions within the 1954 Act. When I give notice I want it to be effective. If you don't opt out then you can only get them out under Statutory grounds like non-payment etc.

Julesgflawyer

14:06 PM, 27th June 2023, About 11 months ago

Reply to the comment left by Nick Van Hoogstraten at 27/06/2023 - 13:17
The courts have held that sub-letting the whole of the property means the tenant isn't "occupying" itself. Hence no 54 Act security. You can still contract out as a belt and braces approach but it's probably not necessary.

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