One student tenant wants to replace another on an existing tenancy

by Readers Question

18:54 PM, 20th August 2013
About 7 years ago

One student tenant wants to replace another on an existing tenancy

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One student tenant wants to replace another on an existing tenancy

Our student property is currently rented under a 12 month tenancy starting 1.8.2013 for 12 months.  One student tenant wants to replace another on an existing tenancy

One of the students, who has signed the above tenancy (and is guaranteed by her parents) has decided not to go ahead with her postgraduate course (and move to Australia) but has found a friend who wants to live in the property.

I don’t want to alter the original lease, so how do I secure the rent from the new tenant?

What about his deposit and our deposit scheme?

Any ideas what I should do?

Thanks

Mike McGuire



Comments

John Gell

19:19 PM, 20th August 2013
About 7 years ago

Hi Mark.

There will be no contractual relationship between you, as landlord, and the replacement student. You need to either draw up a new Agreement with the replacement student named as a joint tenant, or require the original tenant to complete a formal assignation of her interest in the tenancy in favour of her chosen successor, in terms which bind the replacement to the terms of the tenancy.

Unless you're sure that the replacement will pay the rent as required, you're going to be at risk without a guarantor you're happy with.

Not the answer you were hoping for, probably.

John.

David Sweeney

19:28 PM, 20th August 2013
About 7 years ago

Easy. Ish.

You get all the current tenants plus the new replacement tenant to sign a 'deed of assignment'. This transfers the tenancy from the tenant "A, B, C & D" to new tenant "B, C, D & E". It is the same tenancy so deposit protection is unaffected and the new tenant takes on all the responsibilities from the old tenant. The deposit becomes the property of tenant "B, C, D & E", so in practical terms, that needs to be a private handover between A & E.

It is possible to get a template for a deed of assignment online in the space of a few minutes.

Mark Alexander

19:35 PM, 20th August 2013
About 7 years ago

Reply to the comment left by "Dave Reaney" at "20/08/2013 - 19:28":

Hi Dave

Please go ahead and post a link to the one you sell

You are a great supporter and ambassador to The GOOD Landlords Campaign, I reckon we owe you one 🙂
.

Mary Latham

19:46 PM, 20th August 2013
About 7 years ago

NLA Deed of Assignment here http://www.landlords.org.uk/sites/default/files/4%20Deed%20of%20Assignment.pdf

You may have to register with the site first

Follow me on Twitter@landlordtweets

My book, where I warn about the storm clouds that are gathering for landlords is here >>> http://www.amazon.co.uk/dp/1484855337

Mark Alexander

19:49 PM, 20th August 2013
About 7 years ago

Reply to the comment left by "Mary Latham" at "20/08/2013 - 19:46":

Thanks Mary, do you know whether there are any notes on how to complete it?

It is so easy to mess up with Deeds, e.g. tracing the witness, was the witness independent, etc. etc.
.

David Sweeney

19:56 PM, 20th August 2013
About 7 years ago

Reply to the comment left by "Mark Alexander" at "20/08/2013 - 19:35":

Thanks Mark, this is quite a simple document
http://www.tenancyservices.co.uk/products/deed-of-assignment

The cost is £14.99 but that generates a £5 donation to "Chelseas Angels" childrens cancer charit

Mary Latham

19:57 PM, 20th August 2013
About 7 years ago

Reply to the comment left by "Mark Alexander" at "20/08/2013 - 19:49":

It is a really simple form Mark it would be difficult to get it wrong and there are explanatory notes on the document. If anyone does need help completing it they can call the NLA Advice Line

Follow me on Twitter@landlordtweets

My book, where I warn about the storm clouds that are gathering for landlords is here >>> http://www.amazon.co.uk/dp/1484855337

Mark Alexander

20:11 PM, 20th August 2013
About 7 years ago

Reply to the comment left by "Mary Latham" at "20/08/2013 - 19:57":

Deeds are never simple Mary, for example, the NLA form only has one place for a witness to sign. This means that all parties to the deed need to be present at the point of signing and their signatures being witnessed. If that doesn't happen, the deed is not valid.
.

Yvette Newbury

0:11 AM, 22nd August 2013
About 7 years ago

To Mike - I had exactly this situation last year and used the NLA Deed of Assignment and found it straightforward and it worked well for us. Using the official NLA form is good too as then all parties realise it is something official and it carries gravitas.

I also went through the inventory and the new tenant signed next to the original tenant to confirm his agreement to the condition of the property etc.

I must confess though that I did unprotect and reprotect the deposit as I wanted the correct tenants names on it, but then found out that that it was not necessary if a DoA has been signed, you just need to send a copy to mydeposits, they manually change the certificate and re-issue it.

9:33 AM, 22nd August 2013
About 7 years ago

Yvette,

Many thanks for your comments. Could you send me a copy of the DOA?

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