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Mandatory Grounds for Possession

What is the Ground 3 - Out of Season holiday let?

The purpose of having this ground is for landlords who switch between genuine holiday lets and standard residential let's, although you need to bear in mind that the residential let should be for no more than 8 months long.

If you have a holiday let, there is always a risk letting it to a tenant on an out of season holiday let. If you only let to holiday makers you have the right to move them out at the end of their holiday period without going to court. However, if your residential tenant refuses to go, you have to get a court order, and by the time this has been done, even using the so called 'accelerated procedure' the holiday period could be almost over and you will have a lot of disgruntled customers.

Which tenancy agreement would be more suited?

Assured Tenancy - Assured tenancies are designed to give tenants the right to remain in your property until you have reason, or grounds, to seek possession.

Assured Shorthold Tenancy - . Alternatively, you can set up a fixed-term out-of-season assured shorthold tenancy, by prior notice to the tenant, as for a full assured tenancy.

What notice is required?

You must give the tenant written notice before the start of the tenancy (or include a simple declaration in the tenancy agreement) that says the tenancy is not an assured shorthold tenancy and that possession might be recovered on the basis of Ground 3 of the Grounds for Possession in the Housing Act 1988.

Forbes Comment

To maintain the tax status of the property as being a Furnished Holiday Let, the total period that a property is let under either an assured tenancy or an assured shorthold tenancy must be less than 155 days in any given year.

For more information contact Samantha Abdoollah in our Business Dispute Resolution department via email or phone on 01254 222456. Alternatively send any question through to Forbes Solicitors via our online Contact Form.

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