Mortgage provider mandating back-to-back fixed term ASTMake Text Bigger
Having nearly come to the end a remortgage process the lender has now sent me a form that am supposed to sign committing me to fixed term tenancy agreements that must be no longer than 12 months with a ground 2 (Used when the property is subject to a mortgage which existed before the start of the tenancy and the landlord wants to possess the property).
Where the tenancy is to run on beyond the initial (or any subsequent) fixed term a new fixed term agreement (max 12 months) must be issued with a ground 2.
Ok so I can understand why they insist on a ground 2 for the initial fixed term but;
1. Why a max of 12 months?
2. Why do I have to replace the initial fixed term with another fixed term. Surely after the initial fixed term it can run as a periodic with the same protection being provided with a section 21 accelerated procedure if possession is required. It wouldn’t be so bad if the property was let under a single AST but it’s an HMO with five AST’s some of which are already under a periodic term!
Am I missing something?
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