Thanks for your question. It is really more of a practical issue - ie. how to ensure you get the tenant to stay for two years paying rent 1 in the first year and rent 2 in the second.
I would say that the best way forward is to be honest with them the tenant at the outset that you may/are to increase the rent for the second year by granting a new tenancy for that second year, then propose to grant a one year AST at rent 1 (with appropriate break clause if you wish), then serve the notice under s21 of Housing Act 1988 requiring possession at the end of the term of the AST and then upon expiry you and the tenant execute the second AST at Rent 2.
If they take the tenancy at rent 1 saying that they may pay rent 2 in the second AST then they may become settled and wish not to leave. If they decide not to enter in to the second AST then you can take possession of the property and simply remarket at rent 2.
A final note, please tell me you are aware of your responsibilities under the tenancy deposit scheme?
If this has been useful please kindly click accept so that I am rewarded for my time. It will be gratefully received.
You're correct in that because the rent is greater than £25, 000,00 it will not be an assured shorthold tenancy.
Be honest with tenant, hopefully he will be honest with and you say whether he is likely to agree to the higher rent. If he is not then you can either let him have the one year and remarket at the end of the tenancy, or find another tenant now who will agree to the two years and the increase.
Please kindly click accept.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).