1.3 About the tenancy
Properties are usually rented on an annual basis, but a minimum term of six months may also be agreed. Once the tenancy has commenced you have security of tenure for the fixed period, provided you do not break any of the terms of the tenancy agreement.
- In most cases the tenancy created will be an Assured Shorthold Tenancy in accordance with the Housing Act 1988. This applies to all tenancies where the rent is under £25,000 per annum and the tenant is an individual or individuals for whom the property will be their main or principal home. Where the tenancy does not meet one of the above criteria a contractual Non-Housing Act Tenancy will be arranged. In some areas of London we may be required to issue Live/Work leases.
- A break clause allowing either party to bring the tenancy to an end earlier than the end of the fixed term may be agreed, but this is subject to negotiation.
- At the end of the agreed term we can take possession of the property. We are required by law to serve two months notice of our intention to do this.
- You are then under an obligation to leave the premises unless it is agreed that we will grant you a new tenancy.
- On most occasions, if you have been a good tenant our landlords will be happy for you to continue to stay on and renew your tenancy because they are long term professional landlords.
The tenancy agreement and stamp duty land tax
- This is a legally binding document. Once you have read it, agreed the contents and signed it, you are bound by the promises you have made to pay the rent and behave in a certain way. It is important you understand what it says. Any questions relating to the tenancy agreement should be put to the agent for clarification prior to signing it.
- The agreement will detail for how long you can occupy the property and for how long you have agreed to meet its obligations. The length of the tenancy is known as the 'term' of the tenancy and you cannot 'break' this term without permission and special arrangements having been made.
- We prepare and issue the tenancy agreement, which is sent to your agent to present to you for signing as soon as a successful credit search has been completed on each tenant and any guarantor if applicable. Two copies are prepared and you will be asked to sign one. You will be given the second one signed by GRML as agent for your landlord for your own safe keeping.
- Everyone over 18 who is to live in the property must be named as a tenant and sign the agreement prior to occupation. Guarantors where applicable must sign a legally binding document undertaking certain responsibilities before the tenancy starts.
- Because a tenancy agreement is a legally binding document and there are two separate parts both must be exactly the same so no handwritten adjustments can be made to the agreement for any reason without agreement from GRML. In the event that a handwritten adjustment is necessary it must be made to both parts and initialled by you (all) on your copy and by GRML on the landlords copy as agent for the landlord to demonstrate knowledge and acceptance of the amendment.
- You will be given a copy of the tenancy agreement signed by the landlord to keep. You should keep it in a safe place as you may need it as evidence of your tenancy in some circumstances, e.g., for parking permits where applicable.
- With effect from 1 December 2003, under the Finance Act 2003, the tenant is solely responsible for the payment of Stamp Duty Land Tax. This tax only applies to tenancies where the annual rent exceeds a certain limit. It is unlikely that this will apply to your tenancy.
- However, this duty is payable to the Inland Revenue, and further information should be obtained from the Inland Revenue enquiry line on 0845 101 9000 or from their website at: www.inlandrevenue.gov.uk/so .
