Assured Tenancy (AT)
- The default tenancy from 15.02.1989 to 28.2.1997.
- This is important to landlords considering buying a house with tenants predicating certain legislation.
- Letting Agents must also be careful when accepting properties with assured tenants. NOTE!
- Protected Tenancies - Tenancies created prior to 15.1.1989 are protected tenancies, also known as regulated tenancies or sitting tenant tenancies.
- Get it wrong and the result may be a sitting tenant with potential succession rights!
- What does this mean?
- Well... not only are landlords prohibited from evicting the compliant tenant but
- Following death the tenant's off-spring may be permitted to continue in residence.
- Great, say some naïve landlords, there will never be another void!
- True, but the rent is regulated so the resulting rent is almost worthless in the loan to rent ratio.
- Anyone landlord buying a house with a protected tenant will suffer lower rent and this will be reflected in the purchase price. However, if the tenant is very old and there are no successors, then the value can increase, as the property when vacant can revert to commercial rent status as opposed to protected rent status.
Published: 5 November 2013 Last Updated: 19 November 2021