Buyer wants to rent until completion

Wickedkitten

nuki wrote: »

The tenancy ends on the date specified in the AST contract. Section 21 requires possesion and it's used when they go to court to apply for evition. Am I missing something?

The only time she would have to leave is when the bailiffs show up which can be months after a s.21 ends

jjlandlord

nuki wrote: »

The tenancy ends on the date specified in the AST contract. Section 21 requires possesion and it's used when they go to court to apply for evition. Am I missing something?

A statutory periodic tenancy arises if the tenant remains at the property after the fixed term tenancy ends (the date specified on the AST)
That's it. No notice from the landlord has any effect on this.

tbs624

nuki wrote: »

The tenancy ends on the date specified in the AST contract. Section 21 requires possesion and it's used when they go to court to apply for evition. Am I missing something?

The Fixed Term expires on the date in the AST but if the T remains in situ and no new TA has been signed then a tenancy continues to exist (as an SPT) until a court order has been obtained and eviction is concluded.

S21 is merely a statement that the LL requires possession of the property after the expiry of the FT and may proceed to court if to obtain it

nuki

Wickedkitten wrote: »

The only time she would have to leave is when the bailiffs show up which can be months after a s.21 ends

Well I understand that, but to avoid all this going to court, wouldn't be more sensible for all parties to draw up a short AST, so that everyone knows where they stand?

Sorry OP for hijacking your thread.

BigAunty

nuki wrote: »

Well I understand that, but to avoid all this going to court, wouldn't be more sensible for all parties to draw up a short AST, so that everyone knows where they stand?

Sorry OP for hijacking your thread.

Ultimately, there's little a landlord can do to enforce a short term AST if the tenant refuses to leave the property - the legal action taken by serving notice and going through the courts for a possession order takes months.

That's the nub of the problem. The duration of the AST can be as long or short as the landlord/tenant wants but if a tenant does not leave of their own volition, then all the fun and games of a complex, stressful and frustrating legal procedures have to start.

This is why we are telling the OP to refuse a tenancy to his buyer and that the buyer can simply stay on in her current rental property even though her contract has lapsed.

crazygeordiegirl

JQ. wrote: »

You're vendor would be mad to allow this. It does not matter what you have in writing, the legal obligations of an Assured Shorthold Tenancy and the security of the Landlord and Tenant Act are automatically applied where a residential landlord and tenant situation arises. If you put that proposal to me there's no way I'd accept, and if I wanted to let the property I'd do so to a third party and not a potential buyer.

OP - I would not allow your buyer to do this, there are sooo many pitfalls involved. It is you who will take on all the risk and the buyer who will be placed in a much stronger position of power. Tell the buyer to extend their tenancy or sleep on a friends floor - their current predicament is not your problem.

I understand where you are coming from however the vendor did say if he did not sell the property within a couple of months he was going to rent it out anyway. We are currently actually looking at a way round this now (all resting on the mortgage companies head). I don't want to rent as it is 'dead' money - I would rather buy outright and obviously this would be best for the vendor too.

With regards to the OP are you in a position to rent the flat out? Whether it be to this person or another. As the others have said if you are not in a position to rent or not happy to rent I suggest you ask the seller to find another property on a short term tenancy. This is what we will have to do it we need to.

Pewit

crazygeordiegirl wrote: »

With regards to the OP are you in a position to rent the flat out? Whether it be to this person or another. As the others have said if you are not in a position to rent or not happy to rent I suggest you ask the seller to find another property on a short term tenancy. This is what we will have to do it we need to.

I have rented it out before but took back possession to prepare the place for sale.

The original buyer fell through because they wanted to extend the lease (currently 70 years - I am now extending it to 125 years) and couldn't agree the terms so it has now been empty for 6 months.

I have spoken to my former letting agent who also advised against renting to the buyer for the reasons outlined by some of the other replies.

However, I did find information on a Tenancy-At-Will which would potentially fit the requirements.

I would rather not rent it out again on an AST unless I had to, having prepped it for sale.

LandyAndy

Pewit wrote: »

I have rented it out before but took back possession to prepare the place for sale.

The original buyer fell through because they wanted to extend the lease (currently 70 years - I am now extending it to 125 years) and couldn't agree the terms so it has now been empty for 6 months.

I have spoken to my former letting agent who also advised against renting to the buyer for the reasons outlined by some of the other replies.

However, I did find information on a Tenancy-At-Will which would potentially fit the requirements.

I would rather not rent it out again on an AST unless I had to, having prepped it for sale.

I thought tenancy at will was for commercial property but it may be mostly used for that because of the lack of security it offers.

JQ.

LandyAndy wrote: »

I thought tenancy at will was for commercial property but it may be mostly used for that because of the lack of security it offers.

Quite right - a Tenancy at Will is for commercial property. If you let a residential property it will automatically be for a minimum term of 6 months and the tenant will automatically gain all the security of the L&T Act.

OP - don't do it !!!

GDB2222

If your buyer can exchange contracts to buy your flat before 8 May, I see no real reason why you should not provide a rental contract to cover the period until completion. You will have 10% deposit under your belt, and I cannot see what will go wrong. I would not worry too much about your lenders, and the gas safety certificate cost is only about £50. I am sure that your solicitor can make whatever changes are needed to the standard contract to cover the situation.

If your buyer cannot exchange contracts by 8 May, as others have said, it would not be a good plan to agree to a rental.