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Removal of name from joint AST

Started by Blueridgehotel, August 27, 2019, 01:24:27 PM

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Blueridgehotel

Hello guys

Probably a question asked a million times before so I apologise in advance. Got 2 tenant renting my house. They could only pay half the rent last month, but managed to pay this months. Just found out they've split up. They both want to change the agreement by taking the guys name off it. The contract was for 12 months but expired in June. I guess it automatically goes to a rolling month to month, but I certainly do not want to renew it. So my question is:

1) Do I need to take the name off if the contract ran out in June?
2) If so how?
3) I'm thinking if they already struggle with a joint, then surely this is going to be the beginning of a constant battle to get rent from a solo renter. Is it section 21? Or Section 8. Or should start with a nice letter?

Thanks

Any advice will be massively appreciated. Stressed!

Mortimer

#1
You've got two tenants, formerly a couple, who I understand to be male and female.  I understand that the male wants to leave and the female wants to stay on with a tenancy in her sole name.  I can't tell whether your discussions with the male tenant amount to him giving you notice.  If he has given you the proper amount of notice and then moved out, then he's no longer your tenant, although he may still owe you money.  If he hasn't done one or both of these things, then he's still your tenant and still liable for the rent going forward.

The contract was prepared before June 2018 so it's unlikely to comply with the Tenant Fees Act 2019.  You should not allow it to roll on, and you should not agree a variance to it by letter -- if you're going to stay on as a landlord, create a fresh Assured Shorthold Tenancy that's fully compliant with the law as it is today, and use that going forward.

Don't make any assumptions about whether she can afford the rent -- tenants can surprise you sometimes!  Tell her that you're prepared to consider setting up a tenancy in her sole name subject to an assessment of affordability, but at this stage the onus is on her to show how the rent will be paid.  Maybe she can offer you a credible guarantor if you don't mind the guarantor route (it's not ideal but may be preferable to eviction).

Whether to serve section 21 or section 8 at this stage is a judgment call.  Check whether serving a notice could limit your ability to recover any future unpaid rent from male tenant, but generally, I'd always tend to serve the notice, because you can usually rescind it if you agree they're staying after all.

I'd advise section 21 rather than section 8 because it's harder for the tenants to contest.  You can always go section 21 now and issue recovery proceedings in the small claims court later, but it's usually not worthwhile to try to recover unpaid rent.  (Judges don't have jurisdiction over the laws of arithmetic.  If the tenants haven't got any money to pay you then you're not going to get paid.)

Blueridgehotel

Thank you so much for the reply. My understanding is the male wants to be removed from the agreement as he is seeking social housing and needs proof. The female wants him off the agreement as well. He has only informed me that he wants off the tenancy by text message. Nothing in writing.

Mortimer

If you decide to serve section 21 on them both, use form 6a from here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/824957/Form_6A_INTERACTIVE__1_.pdf

This does not prevent you from offering her a separate tenancy in her own name if she satisfies you that she can afford the payments.

KTC

Quote from: Mortimer on August 27, 2019, 02:19:46 PM
If he has given you the proper amount of notice and then moved out, then he's no longer your tenant

If a valid notice to quit have been givn, then the associated tenancy will end on its expiry. No action the tenant or the landlord can take will affect that. If tenant then continue to pay rent, a new (unwritten) tenancy will be created. If the former tenant continues hold over without permission, they will be liable for mense profits for use and occupation at double the amount of rent.

Quote from: Blueridgehotel on August 27, 2019, 02:34:48 PM
My understanding is the male wants to be removed from the agreement as he is seeking social housing and needs proof. The female wants him off the agreement as well.

The quickest way for either of them to do that unilaterally is to serve a valid notice to quit, which would then end the tenancy on its expiry. You are of course not obliged to grant either one a new tenancy though.

He can apply for social housing while he's renting privately. If he is wanting to be off the tenancy because he want priority as homeless, then him ending the tenancy would likely lead to the council finding him intentionally homeless. A single male is also unlikely to get assistance from the council even if he is homeless.

Quote from: Blueridgehotel on August 27, 2019, 02:34:48 PM
He has only informed me that he wants off the tenancy by text message. Nothing in writing.

Text message is "in writing", and if the text message communicate a definite intention to end the tenancy, plus meet the requirements in terms of length and expiry date of notice, then it would be a valid notice to quit. The tenancy will end on the notice expiry.

Blueridgehotel

The quickest way for either of them to do that unilaterally is to serve a valid notice to quit, which would then end the tenancy on its expiry. You are of course not obliged to grant either one a new tenancy though.

How would they do this? In writing? The expiry has already passed and is now rolling monthly. Do I need to draft a letter stating I have taken him off? If so is that legally binding!


Regards

Matt


KTC

Quote from: Blueridgehotel on August 27, 2019, 09:02:13 PM
The expiry has already passed and is now rolling monthly.

I think you're confusing different things. If a tenant continue to stay at the end of a fixed term assured (shorthold) tenancy, then a periodic tenancy arise by operation of law. The period is monthly if that's how often they were paying rent just before the end of the fixed term tenancy.

By expiry, I mean the expiry of the notice to quit, not the fixed term tenancy.

A notice to quit must be in writing, giving a notice period of at least one period of the tenancy or at least 4 weeks whichever is longer, and giving an end date of either the first or last day of a period of the tenancy and/or contain a saving clause to that effect. With the service of a valid notice to quit, the associated periodic tenancy will end on midnight end of the day last day of the period in question. By default, a co-tenant can give notice without the agreement or knowledge of the other co-tenants which will end the tenancy for everyone.