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TENANCY AGREEMENTS
Rent-a-Room
Legislation
If you wish to let rooms in your own residence you should qualify
for tax free allowances. Currently set at a threshold of
£4250.00 before becoming subject to tax, a resident landlord
can earn any amount up to this figure per year from lodgers without
being answerable to the Inland Revenue. This scheme was
introduced in 1992 to encourage those with spare rooms in their
homes to let them out. Both those who own their homes and
those who rent them can qualify for the tax exemption. If the
total rent is less than the threshold, then lenders need not tell
their tax offices. However you should tell your
mortgagee that you have lodgers residing in your home.
Lettings
Under the Housing Act 1998
Part
I of the Housing Act 1988 came into force on 15th January 1989.
Most new lettings made on or after that date by private landlords,
who do not live in the same property as their tenants, will be
Assured Shorthold Tenancies. It is essential to enter into a written
legal agreement, if a letting agent is not involved, then a
solicitor should be instructed to
protect both parties' interests.
Assured Shorthold Tenancies
 This
is the most common tenancy agreement used in
the private rental sector ~ it offers a guaranteed right for
landlords to repossess their property at the end of the agreed
term. Enforcing this legislation takes place through the local
County Court if it is ever needed, it is a fairly
straight-forward and quick procedure.
*A
first shorthold tenancy must be for a fixed term of at least six months.
*The
tenant must be told that it is a shorthold tenancy prior to commencement.
*At
least two month's notice is required from the landlord to bring the
tenancy to an end.
*Another
shorthold tenancy can be agreed to extend the period of the let, or if the
landlord has not served notice that the tenant must leave, then that
tenant may stay on in the property.
At any time after the fixed term, the landlord may serve two
month's notice to recover possession if he wishes, but the agreement can
continue indefinitely if it suits both parties.
Letting
to Companies
A letting contract with a
company is especially prepared and is different from an Assured
Shorthold Tenancy.
In most cases it is equally as desirable.
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Letting
