Buying with “sitting tenants”

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

Breaking News

Rise in no fault evictions

No fault evictions have risen according to the latest data published by the Ministry of Justice. Property disputes lawyer says “some landlords are unwilling to wait for the new Renters’ Rights legislation and are choosing to leave the market” Landlords can apply for an accelerated possession order if the tenants have not left by the…
Read More
Love or Hate Rightmove
Breaking News

Rightmove Weekly Mortgage Rates – 14/02/25

Rightmove’s mortgage expert Matt Smith says: “It’s another week of average rate drops, and the response from the market since the Bank Rate cut has been positive. We hope to now see a sustained period of mortgage rates trickling downwards to lead us through the Spring selling season.” On the first sub-4% mortgage rate Matt says: “The…
Read More
Adding second coat of varnish floor boards
Home and Living

The Benefits of Wooden Flooring: Why It’s a Classic Choice for Any Home

Wooden flooring is often regarded as a timeless and classic choice for homeowners looking to add elegance, warmth, and durability to their living spaces. Whether you’re renovating your home or building from scratch, the decision to install wooden floors is an investment that enhances both the beauty and functionality of your space. In this article,…
Read More
Rightmove logo
Breaking News

Could you fall in love with a home without seeing it? 1 in 5 Brits think they could

As the new season of Love Is Blind hits Netflix this Valentine’s Day, it seems that some Brits are taking the concept of love, (sight unseen) to a whole new level, when it comes to finding their dream home. New research from Rightmove, the UK’s largest property website, reveals that one in five Brits admit…
Read More
Home and Living

Securing Solar Investments: How to Protect Your Solar Panels and Ensure ROI

Investing in solar energy is a smart move for both your wallet and the planet, but protecting that investment is just as important as making it. Solar panels face risks from theft, vandalism, weather damage, and neglect, all of which can chip away at your returns. To ensure your system operates efficiently and generates the…
Read More
Breaking News

Almost one in five property sales now experience ‘gazundering’

Almost a fifth of property sales now experience gazundering, according to figures from property firm Quick Move Now. Gazundering, which is the attempted renegotiating of a lower property purchase price after a sale has been agreed, has become more common in recent years as the market contends with cautious buyers and difficult economic conditions. According…
Read More