Creating a Tenancy

Introduction

  • Leases/tenancies are created in two stages
  • The first stage is the agreement to grant a lease or tenancy
  • The second stage is actual lease or tenancy
  • It is always possible that the parties may not proceed further than the first stage

Formalities for creating a Tenancy/Lease

  • There are different formats of tenancy and lease agreement readily available
  • The tenancy agreement can also be oral; however, a written tenancy or lease agreement is advisable is very handy especially in case of disputes
  • The tenancy can be created by Deed. A deed is a written document which clearly states on its face that it is a deed and is executed and witnessed by two people as a deed. However, the majority of tenancies in England and Wales are not created by deed.
  • All leases for more than seven years must be registered with land registry
  • Where a person occupies a property with the will of the landlord and does not pay a rent, the situation is referred as a tenancy at will. It is not a legal estate and does not have the protection of tenure as normal tenancies may have. Th tenancy at will can be terminated by the landlord any time by withdrawing the permission for the occupier to be on the premises

Important terms

The important terms which are required to be negotiated

  1. The amount of rent payable
  2. The time, frequency and manner of payment
  3. Further course of action in case or rent arrears
  4. The time period of tenancy
  5. Whether a landlord can evict a tenant before the expiry of the term of tenancy
  6. Who will be responsible for bills
  7. Who will be responsible for insurance
  8. Who will be responsible for external maintenance and repair
  9. Who will be responsible for internal maintenance and repair
  10. Whether a tenant can have a lodger
  11. Whether a tenant can sublet the premises
  12. Whether tenant can assign the lease or transfer the tenancy
  13. Whether the landlord has a right of access#
  14. Whether the tenant can keep a pet
  15. Whether tenant can alter the premises
  16. Whether the tenant can use the premises for business purpose.

Disclaimer

While every effort has been made to ensure the accuracy of the information provided in this article, it does not constitute legal advice and cannot be relied upon as such. Each legal case and issue may have unique facts and circumstances, as a result legalally does not accept any responsibility for liabilities arising as a result of reliance upon the information provided. For further help and guidance, you can always rely on and seek advice from our experienced lawyers.