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  • Buy-to-Let

    12 months in advance?

    I've had an offer through my estate agent. Prospective tenant has just sold his house with the same EA and has offered 12months rent in advance to secure property. Tenant is mid 30s and works for a luxury brand.

    Is there any way to structure this safely for myself?

    I'm aware there are various issues around the wording regarding ASTs but have yet to find a definitive answer.
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    This isn't straight forward, there are 2 traps that can stuff you if you use badly worded tenancy agreements, or use good ones wrongly. Firstly you can set the period of the tenancy to 12 months, meaning that you would have to give 24 months notice to end the tenancy. Secondly you could make 11 months rent a deposit, and then if you didn't protect it the tenant could claim 33 months rent penalty because the deposit wasn't protected, and you would lose your right to use a S21 Notice to end the tenancy.

    I'd advise you to join the Guild of Residential Landords and use their guidance and agreements which are designed to prevent you falling into these traps. If you are having problems you can phone up and be walked through the process.
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    Thanks Nick, I've just joined and they have just the agreement!

    Cheers
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    I'm delighted to hear it, I know that you won't regret joining, I don't often make recommendations, but this is one that I make often and I've had several people come back months later and thank me for sending them to the Guild. There are several similar alternatives, but with the Guild effectively you get a personal hotline into one of the top legal brains in property law.
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