L1 Leasing & Letting Flashcards
1
Q
What are the three forms of residential tenancy?
A
- Assured shorthold tenancy (AST)
- Assured tenancy
- Regulated tenancy (Rent Act)
- Contractual Tenancy
2
Q
What is an Assured Tenancy?
A
- Offers long term tenancy rights to TT
- TT has right to renewal at the end of term unless LL serves notice on
specific grounds - Most assured tenancies between 1989 – 1997
- Housing associations often use AT
- Usually lasts for at least 5 years
3
Q
What is a Regulated Tenancy?
A
- Long term agreement between TT and private LL
- Offer TT’s the right to remain in the property for life – LL need court
order to evict - Date back to before 1989
- LL’s responsible for repairs/exterior and structure of the home
- Regulated tenancies can be inherited by spouse following TT death if
living in home for at least 2 years before death then it becomes an AT
4
Q
What is an Assured Shorthold Tenancy (AST)?
A
- Limited security
- Most common type of tenancy if you rent from letting agent or private landlord in UK
- Introduced by the Housing Act 1988 – however tenancies were always AT and not AST unless specifically created.
- Under the Housing Act 1996 this was revised, and all tenancies are default AST, therefore typically anything after 1997 is an AST
- 6 months to 3 years
5
Q
What did the Housing Act 1996 do?
A
Made AST the default tenancy (used to be AT), effective Feb 1997
6
Q
What did the Housing Act 1988 do?
A
Introduced AT and AST, effective Jan 1989
7
Q
What is the difference between an Assured Tenancy and Assured Shorthold Tenancy (AST)?
A
- Principle difference is the limited security of tenancy of an AST.
- Landlord can regain possession of an AST without giving a specific
reason if they follow correct procedure
8
Q
What cannot be an AST?
A
- Live with your landlord
- Rent under £250 (£1,000 in London) or over £100,000 pa
- Holiday let / term under 6 months
- Landlord is local council
9
Q
What are the requirements of an AST?
A
- Rent must be less than £100,000 pa and let to individuals
- Can be fixed term or periodic (rolling weekly and monthly)
- Legally can stay a minimum term of 6 months
10
Q
How can a Landlord regain possession under a AST?
A
- Under Housing Act 1988 – two ways:
- S. 21 (notice of possession)
o Gives LL automatic right of possession without having to give any
grounds once fixed term has expired
o Can’t be before end of fixed term or in the first 4 months
o From 29th Aug 2020 now at least 6 month notice due to corona
o Must follow correct procedure
o Tenant can legally stay until bailiffs come - S 8 (notice to quit)
o When a TT has breached their contract (rent, damage property,
nuisance to neighbours)
o If rent arrears – TT must be in at least 2 months of arrears (if TT
reduces to less than 2 months before court hearing S 8 isn’t valid)
o If legitimate ground for regaining possession can be immediate, 2
weeks or 2 months
11
Q
Coronavirus changes for residential tenancies?
A
- Coronavirus Act 2020 introduced temporary protection for TTs from
being evicted - 6 months’ notice period from 29th August (only shorter if LL can show
TT is in 6 months of arrears, anti-social behaviour or domestic abuse - UK TT’s who miss rent payments due to the impact of coronavirus
were protected for at least three months - From September 2020 courts are dealing with evictions again
12
Q
What are company lets?
A
Properties let to a company rather than individual should not be let under a company but have their own form of agreement
Company responsible for all the tenant obligations
13
Q
What is the process of a letting a property after you receive an offer?
A
- Put offer and all info to LL
- Identify and AML check the tenant/guarantor/company
- Right to rent checks
- Submit for referencing Via enhanced Homelet
- Draft and sign AST
- Register deposit with the TDP
- Provide tenant with all info
14
Q
What tenant reference checks do you undertake?
A
- Smart Search check
o AML
o Identifies PEP - Home Let Enhanced check -> double check report info
o Employment history, CCJ (county court judgement), credit checks, background search (addresses, names), previous LL reference - Student – confirmation from university
- Company tenant – letter from firm
15
Q
How do you do a Right to Rent check
A
- Must check all tenants over the age of 18 (even if they’re POA)
- If time-limited visa – must be done 28 days before start of tenancy
- Check in person – Passport, visa, proof of address (dated with 3
months) - If BRP has not yet come -> check with UK Visas and Immigration
- Info can be certified by third party professional
- Make colour copy and retain for tenancy + 12 months
- Since 30 March – Covid-19 – Right to Rent checks can be done via video call – but they have to attend the office after self-isolation period
- Check with the home office if don’t have the correct documentation
16
Q
What do you do if your tenant has a visa? What is a BRP?
A
- Follow the same process as normal but check BRP/visa
- If time limited visa, need to be checked 28 days before the start of the
tenancy - If BRP has not yet, come check with UK Visas and Immigration
- BRP = Biometric Residence Permit (BRP)
17
Q
What happens if you don’t do a RtR check?
A
Immigration Act 2016 - 5 years in jail or unlimited fine
18
Q
What are the rules around tenancy deposits?
A
- Covered by the Housing Act 2004
- Register with a TDP within 30 days of receipt
- Holding deposits don’t need to be protected – custodial (where LL retains deposit but pays a premium to insurer in case of default) also use of zero deposit schemes
- Return to tenant after 10 days of agreeing amount
19
Q
What information must you provide TT with for TDP?
A
- Must provide specific info on TDP at term start, including:
o Amount of deposit
o Details of chosen TDP scheme
o Alternative Dispute Resolution details
o Contact of LL/prop manager for repairs
o Why you can lose deposit - Can’t serve a section 21 notice otherwise
