Forum Home Search Login Register
+  Landlord Forum
|-+  General Category
| |-+  Landlord Advice & Help
| | |-+  How to change to periodic tenancy

How to change to periodic tenancy

Pages: [1]
Print
Author Topic: How to change to periodic tenancy  (Read 91 times)
Newbie
Posts: 3

I like property

« on: October 07, 2021, 07:28:31 PM »

Hi All, and thanks in advance for any help.

I have a fixed term tenancy on my property which is let to our friend. It is due to be renewed in 2 days and when I spoke to her about it today (she's been there 4 years and has never wanted to move), she informed me that she'll be moving out in March. This has come as a shock, and caused me huge problems for reasons I won't bore you with, but will result in us having to put a house move on hold and potentially lose a property and agent fees as a result.

My question is, I have read that the fixed term tenancy will automatically convert to a statutory Periodic Tenancy if the fixed term tenancy is not renewed on expiry in 2 days. Do I have to do new paperwork, or alter the details on the expiring fixed term tenancy, or does it just change with no new paperwork?

Also, will the periodic tenancy give me more flexibility, as we are not in a position financially to wait for her to move out in March, could I put the house on the market now to sell it, and give her 2 months notice, or do I have to give her 2 months notice and then put the house on the market?

I'm sorry, I'm not sure this is making sense, but I'm panicking a little bit!!

Thank you

Felices
Global Moderator
Hero Member
Posts: 565

I like poetry

« Reply #1 on: October 08, 2021, 12:23:48 AM »

Leaving aside the question of why this is causing you a problem...

If you do nothing then, in two days' time, a Statutory Periodic Tenancy will arise. That tenancy can be brought to an end by your tenant's giving you one month's notice or your giving your tenant two months' notice (in pre-Covid times). At the height of the pandemic the notice period went up to six months. It has since dropped to four and I think it's due to drop back to two months, if it hasn't already done so. Your notice must be in the correct form for a Section 21 (literally, the correct form - form 6a) and, in order for it to be valid, you must have complied with the legal requirements in respect of deposit protection, annual gas safety certificate, EPC, Prescribed Information etc. (Even then, your tenant might not leave and you'd have to get the bailiffs to evict her, which would prolong the process by months).

You could put the house on the market today if you wanted, but bear in mind your tenant may not be all that keen to co-operate with viewings and, unless you're limiting your market to other landlords, your buyer will want vacant possession on completion, which could be tricky if your tenant puts up a fight. (She may regard you as a friend now but the threat of being turned out into the street in the middle of winter might take the shine off things a bit...)

I take it there's a reason you can't just replace your tenant with another one in March?

Newbie
Posts: 3

I like property

« Reply #2 on: October 08, 2021, 07:52:16 AM »

Hi Simon

Thanks for your quick reply, it was very helpful.

I was worried that I'd have only 24/48 hours to redo a tenancy agreement, but I'm relieved to hear that the one I have will simply roll over to a periodic one.

Yes, from 1 October the notice period reverted to 2 months.

Without going into details, we've just entered into financial arrangements based on this tenancy which was due to continue, but now that the tenant has told us of her change of plans this has scuppered our plans and caused us to lose money. That said, as the opportunity has now arisen I would prefer to sell rather than to rent out to someone I don't know. As I said, our tenant is our friend and has enjoyed living in our house, looking after it well. There is no way we would be turning her out on the street!! I would, however, like to get the house on the market asap, but realise this will inconvenience her with viewings etc. So maybe if I'm flexible on leaving dates, she'll be flexible with viewings, if we can limit them to one day rather than several (I may be being hopeful there!).

Thanks again for your information, and any further advice will be very gratefully received!
Global Moderator
Hero Member
Posts: 4297

Abuse Officer

« Reply #3 on: October 08, 2021, 04:48:32 PM »

That's an impressive and exceptionally considerate notice period from Tenant to Landlord... October to March... initiated by the imminent renewal, I suppose... it's still possible to consider a 6 month revised fixed term, but most people here, including me, would advise a SPT is preferable once the initial fixed term has expired. You say you'd prefer to sell than to let to people you don't know... but, I suppose, obviously you realise that this notion is a bit of an oddity in itself? Most Landlords want the exact opposite... "don't let to family or friends" is the first lesson at Landlord School... and the last lesson.
Newbie
Posts: 3

I like property

« Reply #4 on: October 08, 2021, 05:26:24 PM »

Hi Hippogriff
I'm more of an 'accidental' landlord really, as this came about through wanting to help out a friend who needed a place to live. Thus, I'm not anxious to repeat the experience with someone I don't know. Having done a bit of research today I'm now confident that this will work out well and fairly for both of us. Thanks for your advice.
Pages: [1]
Print