R2R lease agreement – 5 or 7 years ?

by Readers Question

10:07 AM, 20th January 2020
About 2 months ago

R2R lease agreement – 5 or 7 years ?

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R2R lease agreement – 5 or 7 years ?

The rent to rent arrangement that I have (as the property owner) works very well and has done for almost 5 years. My particular thanks to this website for the R2R agreement which I have used successfully during this time. I will be seeking to renew the lease agreement with the renter within the next few months.

My specific query relates to the duration of a lease agreement. The aforementioned R2R agreement suggests that this should not be for ‘more than 5 years’ and I’m wondering why this is the case (Is there a requirement to register at the land registry beyond 5 years, or is it now 7 years?)

Would successive leases of 2 years, 3 years, 2 years etc therefore be the preferred option, with a specific clause that the previous leases do not count as a continuous period? How could such a clause be worded?

Appreciate any advice regarding this,
Many thanks
dpmc



Comments

Robert Mellors

9:55 AM, 22nd January 2020
About 2 months ago

I believe that any lease of 7 years or above has to be registered with the Land Registry, so I tend to only offer landlords a 5 or 6 year lease. These are often renewed, but as far as I know, as each lease is less than 7 years, then there is no requirement for them to be registered with the Land Registry.

dpmc

13:46 PM, 23rd January 2020
About 2 months ago

Hi Robert,
Thank you for taking the time to reply - it is very much appreciated. It sounds like as long as we keep each individual lease below the 7 years (which is what we have been doing…) then it should be ok. The R2R agreement does mention ‘5 years’ under the ‘important notes’ section, hence me seeking to clarify this issue however the 7 years that you suggest does confirm the online research I have been doing.
Many thanks again,
dpmc


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