When it comes to property, legal documents and agreements shouldn’t be confusing. However, agreeing on lease terms can often be a real headache. Let’s try to understand the basic concept of short-term secured tenure and discuss the situations in which it can be used.
The Secured Short Term Tenancy or AST is the main form of tenure for England and Wales. Its main objective, when it was introduced in 1997, was to grant the same number of rights to both the tenant and the owner. The idea behind the AST is to give the tenant at least 6 months of quiet life and the landlord an easy way to get the property back from him. The 1996 Housing Act also made it easier for a tenant to sue a landlord for certain necessary repairs to the property.
What is covered?
Most leases are easily included in the AST terms. An AST does not cover commercial lettings, lettings where the annual rent exceeds £25,000, lettings for low rent or mutual benefit, holiday lettings and agricultural letting.
Although the law does not require the AST to be bound by a written contract, it is very important to use a recent and professional contract. Typically, three copies of the lease are made; the third copy is in the hands of the leasing agent for future reference.
A professionally drafted AST agreement must include correct names and contact details of both parties, must clearly indicate the start and end date of the contract, the rental price, the amount of the deposit and the way it is handled, the main responsibilities, responsible party for repairs and maintenance, rules of behavior, pets, smoking and other important clauses.
After Secured Shorthold Tenure
When the fixed term of a short-term secured tenancy comes to an end, it terminates or becomes a periodic tenancy. This must always be agreed between the landlord and the tenant. If both parties are happy with the arrangements, they usually sign a formal agreement. Typically, this new agreement that follows your expired guaranteed short lease is drawn up by the landlord and signed by both parties.
Often, people decide to settle for a mutual oral agreement. This is not advisable, especially in cases where the rental amount would be different or there would be some additional requirements. For example, the landlord needs to fix something or the tenant needs to pay for damages. You do not need to have a lawyer or property agent help sign the new agreement, but you should make sure the agreement is made in two copies.
Periodic tenancy typically runs in monthly cycles, rotating from month to month without the need to constantly renew the contract. Probably, the next time you contact your landlord it will be to let him know before you leave. The notice period is usually one month, but a quarter or any other suitable period may be agreed.
In some cases, a secured short-term tenure can be extended by signing another AST agreement for another 6 or 12 months. Please note that the new AST that follows the initial lease does not guarantee your stay for the agreed period, as the initial lease did. Your landlord can give you notice before the expiration date. That’s why it usually doesn’t make sense to follow one AST with another. A periodic agreement is probably a better way to continue the lease.
An AST is an easy and fair way to manage the landlord-tenant relationship. Be sure to use only the most recent legal documents to avoid unwanted inconvenience.