Product Code: F043
For tenancies granted on or after 28 February 1997 or for tenancies correctly accompanied with a section 20 notice creating an assured shorthold tenancy since 15 January 1989, this ground 1 notice is not needed but landlords may serve it if they wish. Many mortgage companies misunderstand this notice and insist on this Ground 1 notice being served before a tenancy commences.
The intention of a ground 1 notice is to allow possession on an “assured” tenancy where the landlord may seek the property back due to living in the property as the landlords only or principle home. However, possession may not be sought during the fixed term and even during any periodic term, two months notice is required. Therefore, since February 1997, the normal section 21 notice (2 months notice) is used and a landlord does not need to prove whether they intend to live in the property or not.
Therefore, this ground 1 notice is really only necessary if an assured tenancy is being granted which would be very unusual and rare indeed.
If a buy to let mortgage company is insisting on service, there is no harm that can come with serving so a landlord might as well roll with the instruction, even though it will most likely be useless.
Full text of Ground 1, Schedule 2, Housing Act 1988 is available here.