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An AST provides certainty in rent and possession for tenants, but also provides landlords a right to repossess the premises without cause after an initial six-month period. Tenants are entitled to enforce rights against disturbance of possession and for repair of the premises against the landlord.
The agreement can be for any fixed duration. An AST will offer protection from eviction for the first six months following commencement of the agreement, even if the agreed term is less than six months. Typically, ASTs are provided for a six-month to a one-year period.
However, if the tenant breaches any terms of the agreement, the landlord may seek eviction at any point.
As well as being for a fixed period of time, the tenant and landlord will agree on a fixed amount of rent payable. Under the Housing Act 1988, to qualify as an AST, the premises must:
Further the tenant in an AST must be a natural person, and cannot be a legal entity such as an LLP.
If agreed before 28 February 1997, the tenant must have been provided notice that they are signing an AST.
Typically, conditions that are added to ASTs relate to leaving the premises unattended, paying local council taxes and keeping of pets.
In terms of fixed rent, the landlord is usually required to ask the tenant to pay full market rent, which is measured relative to other similar properties in the same geographic area. A fixed rate can only be amended in the course of the tenancy with the agreement of both parties.
If a tenant considers their rent to be excessive, they can refer the landlord to the Rent Assessment Committee within the first six months of their tenancy. The Committee is independent from local authorities and has a statutorily prescribed membership of a lawyer, property expert and a lay member. The Committee will determine what constitutes reasonable market rent for the premises, and will usually look to other ASTs in that area. Application to the Committee is free for tenants.
At the outset of the tenancy, the landlord is obliged to place any deposit received into a government approved scheme. Failure to do so may result in the landlord being unable to enforce their rights, including the right to repossession after six months.
A tenant who has agreed an AST enjoys a range of rights, including:
Under the Housing Act 1988, a landlord has a right to repossession of the premises after expiry of the initial six-month period, even if an actual fixed term has no yet expired. No reason is required for the landlord to exercise their right to repossess.
This right is evoked through use of Accelerated Possession Proceedings, which enable a landlord to bypass the need for a court hearing and instead apply to the court for an order for possession. At least two months’ notice must be provided to the tenant before the actual date of possession.
If the AST expires and no new fixed term is agreed, the tenancy will become a periodic tenancy. This will typically arise if the tenant simply pays month-to-month on a set date. If the landlord wished to initiate Accelerated Possession Proceedings, they must still provide two months’ notice through service of a Section 21 Notice, running from the date rent is routinely paid.
A landlord can bring an AST to an end prior to expiry of its term if a valid reason exists. This will enable a landlord to bypass the six-month protective period where Accelerated Possession Proceedings are concerned. Reasons can include non-payment of rent, late payment of rent, violation of the terms of the tenancy and nuisance or annoyance caused by the tenant. In order to initiate eviction proceedings against a tenant, the landlord will have to serve a Section 8 Notice, notifying the tenant of the grounds for seeking repossession.
The tenant can challenge the repossession in court on the basis that the grounds the landlord has relied on are unreasonable.
It is important a landlord and new tenant are fully aware of the agreement they are entering into form the outset, as well as the rights and obligations they owe to one another. This can avoid costly and time-consuming court proceedings at a later date.
The Property Lawyers at Lewis Nedas Law have specialist knowledge in both commercial and residential property disputes. With offices in Camden and Mayfair, we provide advice to clients across Central, West and North London, as well as the wider UK.
To speak to our Property Law Specialists, please call us on 020 7387 2032 or complete our online enquiry form.
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Miles Herman is a clever, understated lawyer who is at the top of his game.
Richard McConnell carried out conveyance for my family on 4 London flats, 1 sale and 3 purchases. In each instance he was excellent. The attention to detail and communication throughout the process was perfect. I have recommended Richard to several family members and friends who have been extremely pleased. I would have no hesitation in using Richard McConnell and Lewis Nedas in the future should the need arise.
I wanted to take the opportunity as well to thank you for everything that you have done on this case. The result that we got on Monday will have a massive positive impact not only on my life but the lives of all my family including that of my own son. I personally was struggling to hold back the tears when the sentence was being delivered by the judge and I know my father and sister felt the same too. It must be fantastic to work in a way that can have such a positive impact on people’s lives and I want you to know how much it all means to us all. Thanks a million and good luck with all that you do going forward.
Lewis Nedas advised me in a serious case of insider dealing. The lead solicitor dealing with my case was Jeffrey Lewis, who impressed me with his quick grasp of the very complex circumstances. His in-depth knowledge of how the City really works and his long experience of serious financial crime gave me great confidence. But it was also his friendly and supportive attitude, and readiness to take calls (or return them promptly if he was in court) which was very reassuring. I was delighted with the positive result of the case, and the speed and efficiency with which it was handled.
Lewis Nedas Law Limited, led by Jeffrey Lewis, is known as ‘an exceptional firm with a strong team of talented and expert criminal lawyers’. The practice offers a wide range of high-end legal services, including on cases concerning espionage, terrorism, and murder. Siobhain Egan has strong experience in multi-jurisdictional matters; recent highlight engagements concern organ trafficking and terrorism financing, among other matters. Unan Choudhury is noted for his work regarding espionage and murders, while Keith Wood is an expert in High Court contempt proceedings which arise from criminal activity. Other key figures include Miles Herman, who represents clients in complex litigations.
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