Pitfalls of more than 4 on a single AST?

by Readers Question

11:34 AM, 20th October 2014, 12 years ago 4

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Landlord News Landlords Questions

The other day a professional letting agent told me that if more than four people sharing a house are joint tenants on a single AST, the tenants after the fourth named person are not legally obliged to pay the rent! e.g. 6 people on the AST, this would apply to the people named 5th and 6th.

I’ve never come across this before in my extensive reading!

Can anyone here throw any light on this?

Regards

Steve

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Comments

AnthonyJames Read Full Bio

Member Since July 2013 - Comments: 463

2:00 PM, 20th October 2014, About 12 years ago

I’ve never heard of this. Why not ask your letting agent where she or he is getting their information from?

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Ray Davison

Member Since July 2013 - Comments: 233

2:55 PM, 20th October 2014, About 12 years ago

I have heard this before (And to be honest had forgotten about it as we do not do multi-lets) and was confirmed by the helpline at the RLA. Not sure if it is more than four or more than five people but if your agent has brought it up they are probably correct.

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Ian Narbeth Read Full Bio

Member Since July 2013 - Comments: 2007 - Articles: 21

5:35 PM, 20th October 2014, About 12 years ago

If a lease is granted to more than four people (assuming all of full age and capacity) then the legal estate vests in the first four named and they hold as trustees for all the named persons. However, all of the persons named as tenant will be liable (jointly and severally if the lease has been correctly drawn) to the landlord. The vesting of the legal estate is not of much practical interest in the context of ASTs which are (a) not registrable at the Land Registry and (b) not usually capable of assignment, Steve, your agent is not correct.

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Steve Hards Read Full Bio

Member Since August 2013 - Comments: 108 - Articles: 1

9:19 PM, 20th October 2014, About 12 years ago

Thanks all for the replies, and Ian for clearing it up! The agent had understood (or misunderstood) it from her legal department.

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