Surely it’s as simple as putting the house on the market and finding a buyer right? Things may seem simple, but there is usually a tenancy and with that tenants to consider, so you need to gain possession first or at the very least serve the tenant with notice two months prior to the end of the tenancy all fairly straightforward.
Makeurmove.co.uk is warning landlords that selling to a potential new home owner, with a long-term tenant in place this requires a bit more thought.
Richard Francis, Director at Makeurmove.co.uk thinks that if the potential buyer is a buy-to-let investor who is simply looking to rent the house, the whole process is fairly easy.
“However, if the buyer is planning to use the property as their home, landlords need to tread very carefully, if they want to remove the tenant. Firstly, assuming the landlord has an assured shorthold tenancy (AST), they will need to serve a section 21 notice, or a section 8 notice, and then bring proceedings for possession through the courts, in the normal way. This is the only way to remove a tenant if they will not leave voluntarily on a two month notice period.
Whilst the tenant is occupying the property, the landlord does not have the right to show round prospective purchasers, unless the tenancy agreement provides for this. Even if the tenancy agreement does allow for this, the landlord must give proper notice (normally this will be at least 24 hours) and tenants can refuse to allow the appointment if it is inconvenient for them. If the landlord shows round a prospective buyer, even if the tenant has said ‘no’, this will be a breach of the ‘covenant of quiet enjoyment’ and be classed as harassment. Landlords buying a property with a tenant in place will have less rights than the current landlord.
For example, the terms of the existing tenancy can’t be changed and some grounds for possession are not available to a landlord by purchase. In addition to this, the new landlord will not be entitled to increase the rent unless he/she follows the proper procedures. What’s more, a tenant can’t be forced to sign a new tenancy agreement.
The bottom line for landlords is if they want to sell a buy-to-let property and end a tenancy agreement, they must follow the right procedures and stay within the law. In the first instance, they should issue a two month notice to the tenant. If the tenant refuses to move out, the landlord should serve a notice immediately to get the ball rolling. The tenants can’t be bullied as they have rights too.
For landlords looking to buy a property with an existing tenancy agreement in place, they must be mindful of the restrictions placed on them and should ensure they are aware of what they can and can’t do, prior to purchasing the property.”
