'Resident Landlord' rule??
‘Resident Landlord’ rule??
I would appreciate some advice on this aspect of the LL business, which I have been in for some 22 years, but only used ASTs.
Basically, I live in a self-contained 1st floor flat in a listed block of six, and an opportunity to buy one of the other flats on the ground floor- currently rented- has come up. (I’m looking longer term, as a ‘lifeboat’ for me should I become infirm or disabled)
I understand, given the building is a conversion- because I would also be living there, although not sharing facilities, I would be deemed to have ‘Resident Landlord’ status, under the Housing Act 1988, which would prevent me from renting the other flat via an AT or AST?
It would need to be either a licence, or a ‘common law’ Non-Assured Tenancy (NAT).
I spoke to the RLA Advice team yesterday, and he kindly sent me the RLA’s NAT document to peruse, and described it as more like a corporate let, with less to do than an AST, but otherwise, nothing to worry about.
All well and good…
- So I’m looking for information please about what it’s like to rent a property under a NAT, anyone come unstuck with a NAT, what are the advantages etc, and should I be worried at all...?
There are 5 Leaseholders/Shareholders in the RMC and we all have the same lease.
The Lease is ‘permissive’, but states only sublets via ASTs...
Presumably, I’ll need to get some kind of licence granted by the RMC, to allow these two particular flats (reciprocal) to be in ‘breach’ of the lease, by virtue of them both having the same owner?
2a Might such a license have any impact on other leaseholders’ mortgages?
Apparently, this rule would not apply, had the building been ‘purpose built’…
- Why the exception?
- What is the point of such an exception?
I will be getting legal advice on this, as it seems more complicated than it needs to be, but experience from the field is always good, so I hope you can help allay my concerns.
Many thanks in advance
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