Tenants on a 6month AST have no rights to stay longer

by Readers Question

13:23 PM, 4th April 2019
About 3 months ago

Tenants on a 6month AST have no rights to stay longer

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Tenants on a 6month AST have no rights to stay longer

A tenant on a six month Assured Shorthold Tenancy has No Rights other than the right to stay in the house for the Fixed Period. That is made Crystal Clear in the tenancy.

Generally, the Period is Six Months, but it does not have to be. After the fixed period the tenancy lapses into a Periodic Tenancy. Tenants with children usually wish to stay far longer than tenants without children. Younger tenant often do not wish to commit to a three year tenancy.

As to their rights the tenant is assured of being able to stay in the house for the fixed period. As a rule of thumb the landlord requires two things. Firstly, that the tenant pays the rent and secondly looks after the property.

I have had tenants in properties for up to 15 years and quite a number over 10 years. I assume they are happy with me otherwise they would vote with their feet! Look after your tenants and they will stay indefinitely!

However, do not die as your houses may need to be sold! The AST will come to an end! If you retire the same thing! On your gravestone will be the Epitaph. Here lies a Rogue Landlord who died and his tenants lost their homes!

In 2017 Shelter told me I was Fantastic! In 2019 I am Public Enemy Number One! Do not retire without the Permission of Shelter!

People forget just why the AST was introduced. It was to get Landlords to invest! Invest they did! It was a Gold Rush!

Now the Gold has dried up! If HMG want people to invest in houses to rent out then they must make it attractive to investors! HMG is failing! I append ab letter to my local MP.

10th July, 2018

Ms Helen Whately MP,

House of Commons,

Dear Helen,

Three Year Tenancies

 I have read what you have had to say recently about three year tenancies. Of course the longer the security of tenure is the better for the majority of tenants.

However, Private Sector Landlords (PSL) will exit the sector in bulk I fear. On 15th January, 1989 the Assured Shorthold Tenancy (AST) of 6 months duration was introduced for precisely the reason of encouraging people to invest in Investment Properties.

Since HM Government (HMG) has introduced legislation making investment for Private Individuals less attractive and the take up of Buy to Let (BTL) mortgages has dropped by 80%.

The Government wishes to see investment via companies. A company has no age and no exit strategy. It goes on indefinitely renting out houses and flats. The company may be sold and of course end up in the hands of overseas investors.

The Government Strategy is to end up with all non-social rental properties in the ownership of companies. I do not expect HMG will receive much flak from the opposition.

I am 70 years old next month and am actively selling out my properties and paying my Capital Gains Tax (GGT) so it will not make much difference to myself!

Best Wishes,

Yours sincerely,

Fergus Wilson



Comments

David Price

11:18 AM, 5th April 2019
About 3 months ago

I'm 77 and still buying as fast as I can, I have no intention or desire to retire. Let me add one thing for you all to ponder. I have in excess of 50 properties acquired over the last 30 years all with a base value approximating to the current sale value. I have never paid any SDLT or CGT and I am 100% compliant with all the tax rules.

Old Mrs Landlord

13:42 PM, 5th April 2019
About 3 months ago

Reply to the comment left by David Price at 05/04/2019 - 11:18
Does that mean you have only bought very cheap properties? How else have you managed to avoid SDLT? As a landlord who is older than you, I cannot see a good reason to sell up while I'm still sufficiently compos mentis to keep up to date with the legislation and pay my way without depending on state support. However, unlike you, I will not be adding to the few rentals I have at present.

David Price

15:22 PM, 5th April 2019
About 3 months ago

Reply to the comment left by Old Mrs Landlord at 05/04/2019 - 13:42
Yes you are correct none of my properties exceed £40k. Most are within walking distance of HS1. There is plenty of affordable property around which owner occupiers are ignoring.

Mark Alexander

8:49 AM, 6th April 2019
About 3 months ago

Reply to the comment left by David Price at 05/04/2019 - 15:22
Hi David

Have you ever spoken to Chris Sheldon at LettingSupermarket.com ?

If not, then I think you should. He has access to housing schemes which will blow your mind! Direct payment, incentives, grants and even rent guarantee and landlords liability insurance. I think you will be enthralled, shocked and amazed at what he can offer you.

Please report back here when you have had a chat with him.

David Price

10:20 AM, 8th April 2019
About 3 months ago

Mind suitably blown! We may well have a mutually agreeable arrangement, will report back when things get going.

Luke P

13:08 PM, 8th April 2019
About 3 months ago

Reply to the comment left by David Price at 08/04/2019 - 10:20
I will also make enquiries with Chris Sheldon. I've been trying to give our properties to the LA on 10-year leases for decades! I had it all cleared with the bank once, only for some council big-wig to panic they'd be 'too exposed'.


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