SCHEDULE 12CONVERSION OF TENANCIES AND LICENCES EXISTING BEFORE COMMENCEMENT OF CHAPTER 3 OF PART 10

Determination of whether converted contract is secure contract or standard contract

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(1)

A converted contract to which sub-paragraph (2) applies is an additional exception to section 11(1) (contracts made with community landlord are secure contracts).

(2)

This sub-paragraph applies to a converted contract which immediately before the appointed day was a tenancy or licence for a fixed term, provided that—

(a)

a premium was paid for the contract, and

(b)

before the end of the period of one month starting with the appointed day, the contract-holder decides that the contract should become a fixed term standard contract.

(3)

Before the appointed day, a community landlord which is the landlord under a tenancy or licence for a fixed term, and for which a premium was paid, must—

(a)

inform the contract-holder of his or her right under sub-paragraph (2)(b) to decide that the contract should become a fixed term standard contract, and of the time by which that decision must be made, and

(b)

explain how section 11 will apply to the contract if the contract-holder does not make such a decision.