Fake Company Lets
THIS IS NOT A SUGGESTION - IT IS NOT LEGAL - Information Only
This suggestion is not a recommendation, but it will be interesting to see if “fake company lets” start appearing after the tenancy deposit legislation comes into force.
As only assured shorthold tenancies are covered by the legislation, in theory, the tenant could become a company, then let the property as a company let. However, there is much case law on “sham” tenancies which I don’t propose to go into now.
Sufficient to say though that if it were proved to be a “sham”, then despite what the tenancy said it was, it would be regarded as an assured shorthold tenancy. [Street v Mountford [1985] 2 W.L.R. 877].
