Tenant for 7 years - special rights?

hethmar

The property we are thinking of buying has had a tenant for 7 years. He has been given notice to leave due to the sale and appears to have no problem with that. However, if we do get the place we may be happy to keep him on as a tenant at a higer rent (£75 per month higher as suggested by the EA currently handling the rental).

But as a long standing tenant, am I missing any points that may affect us? We plan to move into the property on retirement and wouldnt want to then be faced with a sitting tenant or something in 4 years or so.

Thanks guys.

robnye

i dont really know.

but to me this seems sounds a little iffy.........

i am sure someone who does BTL will have more advice.

have you tried checking with CAB

F_T_Buyer

I didn't think you could have a long term rent for more than 3 years. If it is it's a lease.

This is why I disagree with those who say renting is dead money, as a lease hold property is just long term rent.

rosysparkle

It's not how long he's been a tenant that's important, it's the type of tenancy he has.

If he has an AST, which may be a fixed term or a periodic tenancy, then you should have no problems.

I would request a copy of the tenancy agreement, then you can determine whether retaining the tenant will be a viable proposition. Also see the notice so that you can be sure it has been served correctly.

zzzLazyDaisy

You need to look at the tenancy agreement (or get your solicitor to do it for you). They should have an Assured Shorthold Tenancy. This has an initial term of 6 months, but if not terminated by either party it just runs on until the tenant leaves, or the landlord gives 2 months written notice. Such a tenancy is perfectly capable of running for 7 years, the tenant has no more rights than s/he had when taking the original 6 month tenancy.

As for putting the rent up, again you have to see what it says in the tenancy agreement. If you keep the tenant on, you have to continue to abide by the terms of the original agreement. On the other hand, if the current owner gives the tenant notice to quit, and you take the house with vacant possession, you can rent to whoever you like on whatever terms you like, including the rent.

If it was me, I think I'd want vacant possession. But why not have a chat with your solicitor?

Good luck!

chugalug

From memory (feel free to correct me if I'm wrong) tenancies created under the 1996 Housing Act gave less security - so any tenancy after Feb 1997 is likely to be an AST. After this date only housing associations had the power to grant assured tenancies and there were no further tenancies covered by Rent Acts.

So, if the tenancy is only 7 years you should be ok.

As everyone else has said, check the paperwork to make sure there are no special clauses etc.

hethmar

Thanks peeps. Ive now checked up with the agent who is also the letting agent for this property. They said he is on a two monthly notice and his agreement is renewable at a higher rent at the moment.

Thanks for the pointers