Want to return to live in your rented-out property?

admin    Uncategorized     agents

Re-possession:

During the present
health crisis, with everyone on virtual lock-down, new lettings are
on hold, but when normality resumes, as it surely will, people will
want to let out their own homes on a temporary basis.

Whether for extended
travel or working away, there is a little known way of letting which
ensures landlords can reclaim possession of their properties safely
at the end of the term – known as ground 1. It applies where the
letting has been your main residence and you are returning to occupy
it yourself, or where it was not your main residence before but that
you intent to live there now.

There has been much
talk of a change in the law which would mean that the existing
shorthold regime would be replaced by something equating to an open
ended tenancy, but don’t worry, this won’t happen for at least a
couple of years and given the current crisis, perhaps even longer.

This article is
based on English law and is not a definitive statement or
interpretation of the law; rules change and every case is different –
only a court can decide. Other jurisdictions are similar but there
are important differences. Always seek expert advice before making or
not making decisions.

Ground 1 comes under section 8 of the Housing Act 1988 and appears in schedule 2

In order to apply this clause two things need to happen: (1) your tenancy agreement should include a clause referring to ground 1 and that this may be involved, and (2) the tenant, prior to the start of the tenancy, must be served a notice explaining ground 1 and stating that the letting is on the basis that ground one may be invoked. Of course you need to keep a copy and get proof that the tenant received it, ideally a signature.

Ground 1 (Section 8,
Schedule 2, Housing Act 1988) states:

Not later than
the beginning of the tenancy the landlord gave notice in writing to
the tenant that possession might be recovered on this ground or the
court is of the opinion that it is just and equitable to dispense
with the requirement of notice and (in either case):

(a) at some time
before the beginning of the tenancy, the landlord who is seeking
possession or, in the case of joint landlords seeking possession, at
least one of them occupied the dwelling-house as his only or
principal home; or

(b) the landlord
who is seeking possession or, in the case of joint landlords seeking
possession, at least one of them requires the dwelling-house as (his,
his spouse’s or his civil partner’s) only or principal home and
neither the landlord (or, in the case of joint landlords, any one of
them) nor any other person who, as landlord, derived title under the
landlord who gave the notice mentioned above acquired the reversion
on the tenancy for money or money’s worth.

Notice requiring
possession:

Ground 1 is a
mandatory ground, which means that providing the conditions have been
met in full the court must issue a possession order – it requires
the same notice period as a s21 notice – minimum of 2 months.

Ground 1 no Prior
Notification Notice

In this matter the
courts have some discretion, so in exceptional circumstances, where a
landlord lived in the property prior to the tenancy, and they can
show exceptional hardship on the landlord’s part, and better
circumstances for the tenant, the courts have been known to issue a
possession order without the Ground 1 Prior Notification.

Involking Ground
1

If Ground 1 needs to
be invoked, the landlord serves a section 8, ground 1 notice on the
tenant which gives the tenants a 2-month notice period. However, this
notice cannot expire within a fixed-term period. Housing Act 1988
s7(6)(a)

Given the long
notice period and court schedule waiting times, it is likely to be at
least 3 months before the tenant can be removed, even in a best case
scenario so returning landlords should plan for this.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Want to return to live in your rented-out property? | LandlordZONE.

View Full Article: Want to return to live in your rented-out property?

If you enjoyed this article please consider sharing it!