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  • Any lawyers in the house who understand tenancy agreements?
  • brooess
    Free Member

    Got a draft agreement which I’ll be signing at the weekend. Most of it makes sense but there’s a few paras which, however many times I read them, appear to have no clear meaning

    Not asking for legal advice, just trying to understand the point that’s being made…

    The basis upon which the Landlord can recover possession from the Tenant, during the fixed term, apart from
    Ground 1, are set out in the Grounds of Schedule 2 of the Housing Act 1988, (as amended) and which are referred
    to in this Agreement are as follows:
    Mandatory Grounds
    GROUND 1
    The Landlord HEREBY GIVES NOTICE to the Tenant that the Landlord is the owner occupier of the Premises within
    the meaning of Ground 1 Part 1 of Schedule 2 of the Housing Act 1988 and that
    (a) At some time before the beginning of the Tenancy the Landlord who is seeking possession or, in the case
    of joint Landlords seeking possession, at least one of them occupied the dwelling-house as his only or
    principal home; or
    (b) The Landlord who is seeking possession or, in the case of joint Landlords seeking possession, at least one
    of them requires the dwelling-house as his or his spouse’s only or principal home and neither the Landlord
    (or in the case of joint Landlords any one of them) nor any other person who, as Landlord, derived title
    under the Landlord who gave the notice mentioned above acquired the reversion on the Tenancy for
    money or money’s worth.
    and that possession of the Premises may be recovered under Ground 1 of part 1 of Schedule 2 of the Housing Act
    1988 and the Tenant upon signing the Agreement acknowledges that he has received such notice.
    GROUND 2
    The Landlord HEREBY GIVES NOTICE to the Tenant that the dwelling house is subject to a mortgage granted
    before the beginning of the Tenancy and
    (a) the mortgagee is entitled to exercise a power of sale conferred on him by the mortgage or by Section 101
    of the Law of Property Act 1925; and
    (b) the mortgagee requires possession of the dwelling house for the purpose of disposing of it with vacant
    possession and exercise of that power; and
    (c) either notice was given as mentioned in Ground 1 above or the Court is satisfied that it is just and equitable
    to dispense with the requirement notice;
    and for the purposes of this ground “mortgage” includes a charge and “mortgagee” shall be construed accordingly
    and that possession of the Premises might be recovered under Ground 2 of Part 1 of Schedule 2 of the Housing Act
    1988 and the Tenant upon signing the Agreement acknowledges that he has received such notice.

    And not sure where stamp duty comes into a rental agreement?

    Stamp Duty Land Tax
    31.1. The parties certify that there is no other agreement for a long term lease or tenancy, which attracts Stamp
    Duty Land Tax payable at a higher rate on a purchase or premium, to which this Agreement gives effect.
    31.2. The Tenant agrees that he will comply with his legal responsibility to pay the costs of the Stamp Duty Land
    Tax for the Agreement given to him and signed by the other party.

    Stoner
    Free Member

    SDLT: simply confirms that the tenancy is not part of a larger deal that might have attracted SDLT (like a lease with a premium paid which would attract SDLT on the premium)

    GROUNDS: they are the grounds under which the landlord can terminate the tenancy early. i.e. they want to move in or the mortgage lender wants to sell the property to recover a debt. The clause just states that the landlord is a qualifying landlord under ground 1 and that there is a mortgage in place that qualifies for ground 2.

    toys19
    Free Member

    is this england and wales or scotland?

    Stoner
    Free Member

    Housing Act 1988

    applies in England & Wales.

    brooess
    Free Member

    Thanks.

    It doesn’t say how much notice I’d be given if the landlord wants to terminate the tenancy within the fixed term (which is 12 months).

    Does this mean he can basically throw me out without notice if he decides to move in?

    toys19
    Free Member

    Essentially, I can’t rember how much notice it can be reduced to, but it is a way of undermining an AST. TBH it might be a stipulation by his mortgage co. Mine are very strict, and we have similar clauses to both of those..

    Stoner
    Free Member

    they cant terminate the tenancy early within 6months of the start of the AST and if they do wish to terminate early on the mandatory grounds above they must give a minimum of 2m notice.

    http://www.housinglaw.org.uk/AST.htm

    midlifecrashes
    Full Member

    Does this mean he can basically throw me out without notice if he decides to move in?

    Yep, dem’s da rules! Different grounds(landlord wanting to move back in, non payment of rent/nuisance etc) attract different notice periods.

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