There are two main paths to letting a residence:-
- Short term via an Assured Shorthold Tenancy Agreement. The minimum fixed term is six months and although the period is often extended, this type of let does not provide the Tenant will long term security of tenure. * The tenancy always has to be brought to an end by the Landlord giving the Tenant two months notice. The date calculation and other technicalities are very strictly interpreted. A statutory deposit arrangement is required so legal advice is highly desirable. * (Other types of let that do provide more security are available but are rarely employed these days).
- Long term via a long lease: An interest, usually expiring in 99 years or longer, is granted by the Landlord for a lump sum or premium at the outset and a small ground rent. This type of transaction is dealt with in a similar manner to selling or buying freehold property and such interest is mortgageable in the same way as a freehold.
It is imperative that any Tenancy Agreement or Lease is professionally drawn. Please feel free to contact Daniel Hewitt at our Halesworth office to discuss.