How to get it right – Brief guide to ending an Assured Shorthold Tenancy Landlord Services.

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Presentation transcript:

How to get it right – Brief guide to ending an Assured Shorthold Tenancy Landlord Services

Who we are Kearns Solicitors is the trading name of Kearns Legal Services Ltd Kearns Solicitors provide specialist advice to Landlords regarding all aspects of Housing Law from pre-tenancy to recovery of your property and everything in between. In addition to our in-house team we operate a nationwide advocacy service which enables us to provide a complete service from initial advice through to representation at Court, if required Kearns Solicitors have a wealth of experience in resolving housing & property disputes and accordingly have established a strong reputation in this field Kearns Solicitors is a trading style of Kearns Legal Services Ltd a company registered in England and Wales with number 8791086 having its registered office address at Brecon House, 3 Caerphilly Business park, Caerphilly, CF83 3GQ. Kearns is authorised and regulated by the Solicitors Regulation Authority, SRA No 00070356

What we deliver for our clients: Fixed and transparent fee structure Excellent service, both back office and frontline Fixed Fee Court attendance Nationwide Court coverage - England & Wales Extensive & experienced team of Agents Protection and enhancement of the reputation of our clients Understanding and meeting each client’s specific needs Providing the best service possible each and every time Kearns Solicitors is a trading style of Kearns Legal Services Ltd a company registered in England and Wales with number 8791086 having its registered office address at Brecon House, 3 Caerphilly Business park, Caerphilly, CF83 3GQ. Kearns is authorised and regulated by the Solicitors Regulation Authority, SRA No 00070356

The Kearns Service: examples of our practice areas Pre-tenancy Advice Tenancy Drafting & Review Rental Repossessions Section 8 Claims Section 21 Claims Section 25 Claims Notices to Quit Disrepair Enforcement Proceedings Kearns Solicitors is a trading style of Kearns Legal Services Ltd a company registered in England and Wales with number 8791086 having its registered office address at Brecon House, 3 Caerphilly Business park, Caerphilly, CF83 3GQ. Kearns is authorised and regulated by the Solicitors Regulation Authority, SRA No 00070356

INITIAL CONSIDERATIONS Once you have identified a willing Tenant for your property, you need to take some time to sit down with them, to carry out the relevant checks, provide certain information and complete the Assured Shorthold Tenancy, ensuring that you have complied with the current legislation. An Assured Shorthold Tenancy Agreement (“AST”) An explanation of the Right to Rent Requirements “How to Rent” Booklet (England only) Smoke & Carbon Monoxide alarm requirements Gas and Electricity Safety Leaflet/EPC rating (England only) Deposit Protection An Inventory Beware – the law changes all the time and it is your obligation to make sure you are up to date! Kearns Solicitors is a trading style of Kearns Legal Services Ltd a company registered in England and Wales with number 8791086 having its registered office address at Brecon House, 3 Caerphilly Business park, Caerphilly, CF83 3GQ. Kearns is authorised and regulated by the Solicitors Regulation Authority, SRA No 00070356

Ending an Assured Shorthold Tenancy Section 5 of the Housing Act 1988 sets out the manner in which an AST can be brought to an end. Surrender Operation of Law Implied Surrender - QFS Scaffolding Limited v Sable and another [2010] EWCA Civ 682 Declaration of Surrender Express Surrender – Entering into a Deed of Surrender Kearns Solicitors is a trading style of Kearns Legal Services Ltd a company registered in England and Wales with number 8791086 having its registered office address at Brecon House, 3 Caerphilly Business park, Caerphilly, CF83 3GQ. Kearns is authorised and regulated by the Solicitors Regulation Authority, SRA No 00070356

Ending an Assured Shorthold Tenancy 2. COURT ORDER The most common basis for seeking to obtain possession of a property by way of Court Order arises from the Tenant failing to vacate the property following service of notice pursuant to Section 8 or Section 21 of the Housing Act (1988) 3. ABANDONMENT Abandonment is a breach of the tenancy contract as these usually state that the property must not be left unoccupied in excess of two-weeks without informing the Landlord. However, this breach of contract is protected under statutory rules – namely the Protection from Eviction Act 1977. Kearns Solicitors is a trading style of Kearns Legal Services Ltd a company registered in England and Wales with number 8791086 having its registered office address at Brecon House, 3 Caerphilly Business park, Caerphilly, CF83 3GQ. Kearns is authorised and regulated by the Solicitors Regulation Authority, SRA No 00070356

Try to reach an agreement with your Tenant How to get it right Talk to your Tenant! Resolving a dispute without going to court makes life a lot easier and can save a lot of money Try to reach an agreement with your Tenant Make certain that your Tenant understands the severity of the situation if matters are not resolved Housing Benefit Tenants Kearns Solicitors is a trading style of Kearns Legal Services Ltd a company registered in England and Wales with number 8791086 having its registered office address at Brecon House, 3 Caerphilly Business park, Caerphilly, CF83 3GQ. Kearns is authorised and regulated by the Solicitors Regulation Authority, SRA No 00070356

Ensure you are compliant with Deposit Protection requirements Government's Tenancy Deposit Scheme came into force on the 6th April 2007. Since then, any Tenancy deposits received in connection with an AST must be handled in accordance with one of the Government approved schemes Section 213(3) and 213(6) of the Housing Act 2004 states that you must: Register your Tenant’s deposit within 30 days of receipt Serve upon your Tenant the relevant prescribed Information within 30 days of receipt FAILURE to comply with the deposit requirements will enable your Tenant to bring a claim against you, pursuant to Sections 214(3) and 214(4) of the Housing Act 2004, for: Refund of the deposit A statutory fine of 1-3 times the value of the deposit per breach. The statutory fine is mandatory with the Judge only having discretion as to the level of that fine per breach within the 1-3 times parameter. Failure to comply will also render you unable to serve a valid Section 21 Notice upon your Tenant. Kearns Solicitors is a trading style of Kearns Legal Services Ltd a company registered in England and Wales with number 8791086 having its registered office address at Brecon House, 3 Caerphilly Business park, Caerphilly, CF83 3GQ. Kearns is authorised and regulated by the Solicitors Regulation Authority, SRA No 00070356

Decide which process to eviction process to pursue Section 8 Housing Act 1988 Notices must be drafted on the prescribed form (Form 3). Schedule II sets out 17 grounds to seek possession of your property. Part I provides the grounds (1-8) on which Court must order possession: e.g. Ground 8 – two months rent arrears at the time the notice is served and at the date of the hearing Part II provides the Grounds on which Court may Order Possession (discretionary): e.g. Ground 14 – antisocial behaviour Length of the notice is determined by the ground under which possession is sought: Grounds 3, 4, 8, 10, 11, 12, 13, 15 or 17 – at least 2 weeks Grounds 1, 2, 5, 6, 7, 9 and 16 – at least 2 months Ground 14 – you can start proceedings as soon as you have served notice (24 hours) Kearns Solicitors is a trading style of Kearns Legal Services Ltd a company registered in England and Wales with number 8791086 having its registered office address at Brecon House, 3 Caerphilly Business park, Caerphilly, CF83 3GQ. Kearns is authorised and regulated by the Solicitors Regulation Authority, SRA No 00070356

Decide which process to eviction process to pursue Section 21 Housing Act 1988 The Chairman of the London Association of District Judges has said 7 out of 10 of these notices are being thrown out of court because they are wrong. Grounds ‘No fault’ system unlike the Section 8 process Section 21(1)b is used when the tenancy is within the fixed term contracted period or where the tenancy agreement has not been renewed and the tenancy is now a periodic one. Notice under Section 21(4)a is used once a fixed term has become periodic but MUST be used when the tenancy was always a contractual periodic tenancy. For Section 21 notices relating to ASTs entered since 1 October 2015: Form 6A is to be used (can also be used for pre 1 October 2015 tenancies) A valid Section 21 notice requires that the requirements of a tenancy commencing on or after 1 October 2015 have been satisfied Cannot be served within the 1st four months of an Assured Shorthold Tenancy Must provide 2 months notice and cannot expire before the end of the fixed term and last for a maximum of 6 months Kearns Solicitors is a trading style of Kearns Legal Services Ltd a company registered in England and Wales with number 8791086 having its registered office address at Brecon House, 3 Caerphilly Business park, Caerphilly, CF83 3GQ. Kearns is authorised and regulated by the Solicitors Regulation Authority, SRA No 00070356

Decide which process to eviction process to pursue Court Procedures Section 8 Standard possession proceedings – N5 Usually listed for a hearing circa 8 weeks after filing the claim Witness Statements must be filed prior to the hearing Section 21 Can use the standard possession or accelerated possession route Accelerated possession (N5B) can only be used if: You have a written AST Can file all required supporting documents with the claim form(e.g. AST, Notice, proof of deposit protection) Parties to the AST have not changed Benefit of accelerated proceedings are that there is no hearing and usually a paper based exercise. Disadvantage is that you cannot seek to recover rent arrears or monies due within these proceedings. Kearns Solicitors is a trading style of Kearns Legal Services Ltd a company registered in England and Wales with number 8791086 having its registered office address at Brecon House, 3 Caerphilly Business park, Caerphilly, CF83 3GQ. Kearns is authorised and regulated by the Solicitors Regulation Authority, SRA No 00070356

Change the locks or throw your tenant out What you shouldn’t do Change the locks or throw your tenant out Criminal offence and you could be prosecuted. Tenant can also bring a claim against you for compensation for unlawful eviction. Take too long to take action Your Tenant could be damaging your home, increasing rent arrears etc. 3. Breach your obligations as Landlord Tenants can defend Section 8 proceedings (particularly those based on rent arrears) by claiming that their landlord has failed to meet their obligations 4. Fall foul of the deposit protection rules The costs of breaching the rules could negate your reasoning for commencing the proceedings in the first instance (e.g. rent arrears) Kearns Solicitors is a trading style of Kearns Legal Services Ltd a company registered in England and Wales with number 8791086 having its registered office address at Brecon House, 3 Caerphilly Business park, Caerphilly, CF83 3GQ. Kearns is authorised and regulated by the Solicitors Regulation Authority, SRA No 00070356

On the horizon ….. ‘Right to Rent’ Checks The Immigration Act 2014 introduced a prohibition on renting premises to individuals to use as their only or main home if they do not have a right to stay in the United Kingdom. What documents might a Landlord want to see? Passport National Identity Card Residence card or certificate of registration or naturalisation If none of these are available two other specified documents will satisfy the checks. There is a full list of acceptable documents in a Code of Practice produced by the Home Office which can be found at www.gov.uk/government/publications/right-to-rent-landlords-code-of-practice Kearns Solicitors is a trading style of Kearns Legal Services Ltd a company registered in England and Wales with number 8791086 having its registered office address at Brecon House, 3 Caerphilly Business park, Caerphilly, CF83 3GQ. Kearns is authorised and regulated by the Solicitors Regulation Authority, SRA No 00070356

For a home to be an only or main home it must be either: RIGHT TO RENT The rules have applied in England since 1 FEBRUARY 2016 but there is a proposal to extend this to Wales. The rules apply to Landlords or Agents who have let private rented accommodation to someone as their only or main home on or after 1 December 2016. For a home to be an only or main home it must be either: the only property that the person lives in; or the property that they use for personal, legal or family matters. A Landlord can receive a civil penalty of up to £3,000 for each adult living in their property who isn't a Relevant National or has no right to rent. Kearns Solicitors is a trading style of Kearns Legal Services Ltd a company registered in England and Wales with number 8791086 having its registered office address at Brecon House, 3 Caerphilly Business park, Caerphilly, CF83 3GQ. Kearns is authorised and regulated by the Solicitors Regulation Authority, SRA No 00070356

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