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What Kind Of Tenancy Agreement Will Be Used?
Date Added 12/02/2006
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The most common form of tenancy agreement used is an “Assured Shorthold” (an AST) under the 1988 Housing Act (amended 1996). This type of tenancy offers the most flexibility to both landlord and tenant; has straightforward notice procedures for bringing the tenancy to an end and a special Accelerated Possession court procedure should tenants fail to vacate.
If certain specific conditions are met relating to the proposed letting, a “contractual” non-housing act tenancy must be created. One example of this would be what is commonly referred to as a Company Let where the tenant is a bona fide registered company, another would be where the annual rent equates to over £25,000.
Very rarely, a prospective tenant may be offered a full “Assured” tenancy that gives very significant and potentially long-term security of tenure to a tenant and, for which a landlord can only get possession in very limited circumstances.
Most ARLA member firms will have their own “in-house” agreements which are usually much more comprehensive than ones bought in a local stationers or Post Office etc. Following lengthy consultation with the Office of Fair Trading, ARLA created and now sells a model Assured Shorthold Agreement to both member firms and non-members.
Joint And Several – What Does That Mean?
Mostly, where there is to be more than one (adult) person living in the property, the tenancy will say they are “jointly and severally” responsible. This expression means that, jointly, the tenants are liable for the payment of all rents and all liabilities falling upon the tenants during the tenancy, as well as any breach of the Agreement. Individually each tenant is responsible for payment of all rent and all liabilities falling upon the tenant, as well as any breach of the Agreement until all payments have been made in full.
The Above information has been provided by ARLA (Association of Residential Letting Agents) please visit www.arla.co.uk for further information.
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