Landlord could be liable to a lifetime tenancy if a tenant is carrying out a home based business?Make Text Bigger
I discovered that if you rent your property and the tenant is running a legitimate small business from there (with or without your permission) like a hairdresser or architects practice from the bedroom converted to small office the tenant can obtain a life time tenancy.
The rules are something to do with the landlord and tenant act 1954 and that businesses are allowed lifetime tenancies so if they do a business on a residential AST even though the residential tenancy says they can’t, the landlord can be held liable to the lifetime tenancy. All AST’s before Oct 2015 allow the tenants this right but new AST’s after this date cover homeworkers/home based businesses and therefore the landlord is protected from the lifetime tenancy issue.
So my question is does anyone know of any strategies as to what to do if one gets into this awful situation, are there anyways out? Plus if a lifetime tenancy is granted, will the rent be fixed or capped at that rate forever?
Also what happens with the buy to let insurance policy, do they cover tenants who run a business from home like a mother who runs a hairdresser just seeing maybe 2 or 3 clients a day? Obviously there will be a breach of mortgage conditions, but I’m not too worried about that part just now.
Any advice would be appreciated.
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