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LuckyOne

Common Law Tenancy Versus Ast ......

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One of the reasons that some on this site seem to be considering buying homes rather than renting, even though they think that prices are falling, is security of tenancy.

There are at least two types of tenancy agreements :

- Common Law Tenancy

- Assured Shorthold Tenancy

For those considering moving into new rental accommodation or renewing a lease, it might be worthwhile doing a bit of research on Common Law Tenancies as they do seem to offer a lot more security of tenancy than Assured Shorthold Tenancies.

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One of the reasons that some on this site seem to be considering buying homes rather than renting, even though they think that prices are falling, is security of tenancy.

There are at least two types of tenancy agreements :

- Common Law Tenancy

- Assured Shorthold Tenancy

For those considering moving into new rental accommodation or renewing a lease, it might be worthwhile doing a bit of research on Common Law Tenancies as they do seem to offer a lot more security of tenancy than Assured Shorthold Tenancies.

Which is why a landlord would never offer a CLT.

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Which is why a landlord would never offer a CLT.

Mine just did. Three years + my option to extend for 1 more.

I think that renters need to look for professional landlords rather than fly by night BTL amateurs.

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Which is why a landlord would never offer a CLT.

One other comment : the rental market is more rational than the purchasing market as the former is generally based on income while the latter is based on debt.

It is much easier to get what you want in the rental market than it is in the purchasing market.

People need to learn what they want and not to be shy in asking for what they want.

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One other comment : the rental market is more rational than the purchasing market as the former is generally based on income while the latter is based on debt.

It is much easier to get what you want in the rental market than it is in the purchasing market.

People need to learn what they want and not to be shy in asking for what they want.

There are trustworthy tenants and trustworthy landlords.....when each find each other a good deal can then be reached between them. ;)

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One other comment : the rental market is more rational than the purchasing market as the former is generally based on income while the latter is based on debt.

It is much easier to get what you want in the rental market than it is in the purchasing market.

People need to learn what they want and not to be shy in asking for what they want.

In theory, however the cost of debt is sometimes passed onto the rent. A less leveraged landlord should be able to be more competitive. It ought to be possible to say offer higher security at higher cost, and low security at lower cost. We seem to have low security at high cost. Higher security and long term tenants can work for landlords too, but they want the best of both worlds.

Seems crazy to me that landlords can arrange long term financing on the basis of insecure short term contracts. Could I get a mortgage on the basis of a six month temporary job contract? Until relatively recently, no.

I've got this scenario atm. Four months into a six month tenancy, and they want the place to become a show place for potential new tenants. I haven't decided if I want to stay or not, but I'm tempted to stay till the S21 expires and only then permit viewings. If they don't like it tough, as I have been an excellent tenant.

Edited by John Steed

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In theory, however the cost of debt is sometimes passed onto the rent. A less leveraged landlord should be able to be more competitive. It ought to be possible to say offer higher security at higher cost, and low security at lower cost. We seem to have low security at high cost. Higher security and long term tenants can work for landlords too, but they want the best of both worlds.

I've got this scenario atm. Four months into a six month tenancy, and they want the place to become a show place for potential new tenants. I haven't decided if I want to stay or not, but I'm tempted to stay till the S21 expires and only then permit viewings. If they don't like it tough, as I have been an excellent tenant.

This is an effect that is happening in the commercial property market all over the place.

Unleveraged landlords are able to undercut leveraged landlords which puts leveraged commercial property back into the hands of banks who then sell them on at lower prices to new landlords with much lower leverage.

If the economy remains week and we see household sizes increase, this same effect will be seen in the amateur BTL market.

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...they want the place to become a show place for potential new tenants....

Expand? They want to use you as some sort of zoo exhibit to show how good their places are???? That just seems absurd.

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Expand? They want to use you as some sort of zoo exhibit to show how good their places are???? That just seems absurd.

Maybe they want to sell but still need the rental income to pay the mortgage.... :o

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Maybe they want to sell but still need the rental income to pay the mortgage.... :o

But he specifically said "new tenants" rather than "potential buyers".

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But he specifically said "new tenants" rather than "potential buyers".

Sorry, I thought highly leveraged buyers were the same as tenants. ;)

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Sorry, I thought highly leveraged buyers were the same as tenants. ;)

:lol: I'll rack 'em up, you knock 'em down!

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you don't have to allow viewings,go to the rental sub forum for help if you need it.

Yeh I am aware I've studied the sub forum thanks rolleyes.gif

I'm happy to allow viewings once I know for certain I'm going. AFAIK the landlord isn't mortgaged.

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I'm having a problem finding out what common law tenancies actually are. Can anyone advise how you create one?

Because From what I've Googled so far, I've only found out that common law tenancies arise in the following situations

http://www.landlordlaw.co.uk/tenant/faq/tenancy/when-do-you-get-common-law-tenancy

* Company lets - ie lets to limited companies. This is because the statutory codes are designed to protect 'individuals' only. With a company let, the tenant is not a real person.

* High rent lets - lets to tenants where the rent is over £100,000

* Low rent lets - lets to tenants where there is either no rent at all or it is less than £250 per annum (£1,000 in Greater London)

* Resident landlords - lets where the landlord lives in separate accommodation in the same building (ie where there is a 'resident landlord'), other than a purpose built block of flats. This is generally where a landlord has divided a large house into flats and lives in one of them. (Note - if the landlord shares living accommodation such as a kitchen and bathroom, the sharer will be a lodger not a tenant, and will have a license not a tenancy agreement).

* Student lets - note that these are only lets to students by the College or University where they are studying, other lets to students are treated the same as lets to anyone else

* Former protected tenants - lets to tenants which were originally protected under one of the statutory codes, but where the tenant has lost protection, usually due to moving out and subletting the property to someone else

Edited by oldsport

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Mine just did. Three years + my option to extend for 1 more.

I think that renters need to look for professional landlords rather than fly by night BTL amateurs.

How? These days it must be 90+% of the market that is either btl amateur idiots who are on the verge of bankruptcy or idiot 'sellers' renting it out 'until the market improves' who have no clue what renting actually means. I've never seen a professional landlord, is there such a thing?

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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