This can present a great opportunity for those who are willing and able to wait out the tenancy, as the property will jump back to market value once the current sitting tenant is no longer in situ.
The main issue buyers come up against when purchasing a property with tenants in situ is financing. Many lenders will be unwilling to lend on a property with sitting tenants, so a cash purchase may be your only option. That said, as this scenario is happening more frequently and lenders are competing against each other in the current buy-to-let market, things are changing.
This is especially true if you have a longstanding, happy relationship with your tenant. Even in such situations, all is not lost, and going through the necessary procedures to make the sale happen could well be worth the hassle. Selling with tenants in situ could actually be the better option.
The content of this article is intended for informational purposes only and does not constitute legal advice, so always consult a property lawyer before taking action.
You can use the browser settings to change your cookie setting. Otherwise we'll assume you're OK to continue. Find your perfect property in Buckhurst Hill, Wanstead and surrounding areas. Find out how sitting tenants can affect your property and what you can do to make the sale process simpler and fairer for everyone involved. A sitting tenant is someone who is renting a property that their landlord wishes to sell.
If the tenant has a contract or agreement ongoing with their original landlord, they retain the right to live in the property when it changes hands. But for prospective buyers who are also landlords, purchasing a ready-made let complete with tenants can be a bonus. Sitting tenants, like all tenants, have rights that are designed to protect them — as do landlords. The rights your tenants will have will largely depend on the type of tenancy agreement you have.
For example, if you have an assured shorthold tenancy AST in place, your tenant has the right to live in the property for a fixed period of time. This is usually between six and 12 months. Essentially, this changes the contract from a fixed term to a rolling monthly agreement. If you want to regain possession of your property, you can do this by issuing a Section 21 notice. You can arrange this whether your tenant has an AST or periodic tenancy in place, but you must follow certain rules for the notice to be valid — find out more in our guide to Section If your tenant has an assured or regulated tenancy, their tenancy rights are more comprehensive compared to an AST.
In these examples, they may have rights of succession where they can leave tenancy rights to relatives. They may also have the right to stay in the property indefinitely.
The only time tenants do have the right to buy, is if the property is owned by the local authority. As the landlord you can offer your tenant first refusal if you want to sell but this is not something you must do by law. On the other hand, tenants with a regulated or assured tenancy, do. If the tenancy is a regulated or an assured tenancy you may not be able to give the tenant notice.
You could try asking the tenant to leave, or perhaps offering them a financial incentive to leave. However, this may be difficult and expensive and the tenant may refuse to do so. Wait until the Tenancy Ends You can wait until the tenancy ends, if applicable, and then sell the house empty with vacant possession. You will need to check the tenancy to find the end date, or even if there is one at all. If the tenancy is an assured shorthold tenancy there will be a date on which it can end.
However, other kinds of tenancy, may, effectively, have no end date at all. There are some other problems to consider when selling your house with a sitting tent: Your sitting tenant may not co-operate with the sales process, especially if they are not happy at being asked to leave. Your tenant may be unwilling to allow estate agents, valuers and potential buyers access to the property.
You can only insist on this if the tenancy allows for it. In some cases, your sitting tenant may be willing to move out so that you can sell your house.
However, if they cannot find somewhere else to live it may stop them from moving. Even if your sitting tenant co-operates the house may not be tidy or well presented which can put potential buyers off. If your sitting tenant leaves your house and you put it up for sale your house will not earn any rent until the sale goes through. Ask your Tenant to Buy the House A sitting tenant does not have a right to buy their home, except in the case of a local authority property.
However, you could offer them the opportunity to buy it. Possible problems with this are that your sitting tenant may not want to, may not be able to afford it, or may not be able to get a mortgage. Sell the House with a Sitting Tenant You can sell your house to a landlord or property investor with a tenant in situ. Remember that the value of a house with a sitting tenant may be much less than the same house without a sitting tenant.
It could be difficult or even impossible to find anyone who wants to buy with a tenant in situ at all. Selling to a Cash Buyer Selling your house to a cash buyer, complete with a sitting tenant, can be a quick and straightforward way to solve your sitting tenant problems. If you sell your house to a cash buyer the tenancy will become the responsibility of the buyer. Skip to main content.
0コメント