Buying with “sitting tenants”

August 7, 2015

Finding a buy-to-let property with a tenant already occupying is in many respects an ideal situation for a new landlord looking to buy that property, there will be income from day one of ownership and all the hassle of finding a tenant would have been avoided, however before any potential buyer goes rushing ahead with the purchase there are a few issues to consider when buying a property with a tenant already installed.

If for example the property has “sitting tenants” all matter of research should be carried out.

The length of time the tenant has been in the property is very important to know, not just the date of the last tenancy agreement, these days most tenancies are assured shorthold tenancy agreements but it should not be taken for granted that is the case on the property about to be purchased, absolute clarity as to what type of tenancy agreement is in place on the property is required.

If the tenants have been in the property since before 15th January 1985 they will almost certainly be ‘protected’ tenants which means that they will be almost impossible to ever evict, all rents for protected tenancy properties have to be set by a rents officer, in the case where tenants that were first installed between 15th January 1989 and 27 February 1997,  it’s likely that they will be assured shorthold tenants, but you should find out whether a ‘section 20′ notice has been served on them, otherwise they will only be assured tenants. If this is the case you will also find it difficult to evict them if needed.

If a section 20 notice has been served then you need find out when,  if after the tenancy began then  it will not be an assured shorthold tenancy, you will need to be able to prove that the notice was served technically before they moved in, should you ever need to evict them.
The most simple scenario for a potential landlord is that the tenancy started after 27th February 1997 as they will almost definitely be assured shorthold tenants.
The above information is a brief guide as to what type of tenancies you might encounter when buying a property with a sitting tenant, to be completely sure that you are not getting trapped into an agreement that is not in your favour take professional advice through a solicitor or the letting or management agency you intend to use.

 

Alex Evans

You May Also Enjoy

Letting Agent Talk

29 is the age house sharing becomes ‘embarrassing’

but 11% still do it, according to new Nationwide research That equates to 27 million admitting they have felt embarrassed about their living situation With 69% saying living alone is unaffordable, it’s no surprise the average age of those in house shares is 35 From moving home (12%) to living with an ex (10%), as…
Read More →
Estate Agent Talk

1 in 5 London Homes Listed in Last 30 Days

The latest research from London lettings and estate agent, Benham and Reeves, reveals that one in five homes currently for sale in London have been added to the market within the last 30 days, as sellers respond to strong buyer demand. Demand for London homes is strong Benham and Reeves has analysed current residential property…
Read More →
Commercial Agent Talk

Biggest block management headaches revealed

The latest insight from property management specialist, Rushbrook & Rathbone, has found that utilities, cleaning and gardening are the most common block management requirements, accounting for almost two thirds of all call-outs and maintenance tasks carried out in 2025. Rushbrook & Rathbone’s internal data shines a light on what most frequently drives costs when it…
Read More →
Home and Living

Invasive plants could be damaging your property

What every homeowner needs to know. Invasive plants growing in your garden could be causing serious and costly damage to your property without your realising. Some species can undermine foundations, cracking patios and driveways, and spreading rapidly beyond your boundaries, potentially leading to disputes with neighbours. The financial impact can be significant. Left untreated, these…
Read More →
Rightmove logo
Breaking News

Rents stand still at start of the year for the first time since 2017

The average advertised rent of homes outside of London remains flat (0.0%) at £1,370 per calendar month, the first time since 2017 that there has been no rise from Q4 to Q1: Average advertised rents in London rose by 0.7% this quarter to £2,736pcm Average rents outside of London are still 1.6% higher than this time last year, though this is the lowest this figure has been since 2018…
Read More →
Breaking News

London estate agents represent best value added

The latest research from AgentWise, the agent community helping to support estate agents through global collaboration and market insight, has found that London estate agents represent the best value added during the transaction process when compared to many other global property hotspots, with the average commission earned per property sitting well below other major global…
Read More →