Landlady putting our rental to auction.

peytonx

Hi All,

I was informed last night by our landlady that she wishes to sell the house we rent. She asked if we would be interested and when we declined she said she would send it to aucition with a reserve.

She has asked if we will 'stay put' until she tells us the house is sold.

Now normally I would have looked for somewhere else and given notice but we have had an offer accepted to buy a house and completed the full mortgage application only yesterday!

Obviously we used the address of the rental which we have been in over three years.

I do not want to distrupt the mortage application at this stage but I can not guarantee we will be still living there by completion

I trust she still has to give us the 30 days notice per our tenancy agreement once she told us the house was sold?

To be honest I think she wants too much for the house and will not sell it at auction.

If the sale does go through before we complete then I would move into my parents, so I am thinking should I just give notice and inform the mortgage company of the change of address? Or stick it out?

In the meantime she is going to increase the rent!

By the way, the landlady has no idea we have applied for a mortgage. I intended to give notice closer to completion.

thesaint

What sort of tenancy do you have? Assured Shorthold Tenancy?
Has the fixed term expired?

peytonx

Hi, it is am assured shorthold tenancy. The original fixed term of 6 months expired 31 months ago and we are now on a rolling monthly contract.

DRP

peytonx wrote: »

Hi All,

I was informed last night by our landlady that she wishes to sell the house we rent. She asked if we would be interested and when we declined she said she would send it to aucition with a reserve.

She has asked if we will 'stay put' until she tells us the house is sold.

Now normally I would have looked for somewhere else and given notice but we have had an offer accepted to buy a house and completed the full mortgage application only yesterday!

Obviously we used the address of the rental which we have been in over three years.

I do not want to distrupt the mortage application at this stage but I can not guarantee we will be still living there by completion

I trust she still has to give us the 30 days notice per our tenancy agreement once she told us the house was sold?

To be honest I think she wants too much for the house and will not sell it at auction.

If the sale does go through before we complete then I would move into my parents, so I am thinking should I just give notice and inform the mortgage company of the change of address? Or stick it out?

In the meantime she is going to increase the rent!

By the way, the landlady has no idea we have applied for a mortgage. I intended to give notice closer to completion.

As I understand it she has to give you 2 months notice to move via an S21 as you are on a rolling contract. If you stay put after that she would need to apply to court to get you evicted.

If she sells the house whilst you are still resident , it is very simple for you - the buyer will become your LL and your rights stay the same.

Given these statutory rights, in your position I would stay put and not inform the LL about any of these facts (assuming you anticipate your house purchase to complete within the next 2 - 4 months.

Herbalus

peytonx wrote: »

She has asked if we will 'stay put' until she tells us the house is sold.

In the meantime she is going to increase the rent!

What? She quite possibly has finance issues, if this and her high house price is anything to go by, but this is quite cheeky. She's asking you for a favour by staying as long as possible (and not caring about you because she wants you out when she sells), and for the privilege you are being charged more!

Don't take it.

Werdnal

She has to give you 2 months formal written notice that she will seek to end the tenancy, and if you do not leave by giving your own month's notice in the meantime, she can apply to end the tenancy AFTER that 2 months.

So you either give your own month's notice to leave - this must co-incide with a monthly tenancy period end date, or sit it out to the end of her notice or beyond if you choose.

If she is selling in auction, it is often a requirement to exchange within 2 weeks of sale date, so unless she finds an investment buyer, you will hinder her sale by being there, as no-one can buy with a resi mortgage whilst you still have a valid tenancy.

There is no "30 days notice" from her side of the deal - its 2 full calendar months!

buglawton

Curious, a buyer would be very cautious to buy anything with a tenant, no matter what tenancy agreement exists. In fact it devalues the property value especially if a fast completion is needed.

tim123456789

Werdnal wrote: »

She has to give you 2 months formal written notice that she will seek to end the tenancy, and if you do not leave by giving your own month's notice in the meantime, she can apply to end the tenancy AFTER that 2 months.

So you either give your own month's notice to leave - this must co-incide with a monthly tenancy period end date, or sit it out to the end of her notice or beyond if you choose.

If she is selling in auction, it is often a requirement to exchange within 2 weeks of sale date, so unless she finds an investment buyer, you will hinder her sale by being there, as no-one can buy with a resi mortgage whilst you still have a valid tenancy.

There's nothing at all strange about this

About 30% of properties in London auctions have a sitting (FSVO sitting) tenant.

tim

Werdnal

tim123456789 wrote: »

There's nothing at all strange about this

About 30% of properties in London auctions have a sitting (FSVO sitting) tenant.

tim

Did I say it was unusual? I was explaining the situation to the OP as they obviously do not understand the process. It is true that many investment buyers look to auction to buy with tenants, but many also prefer to buy vacant and put their own tenant in.

thesaint

buglawton wrote: »

Curious, a buyer would be very cautious to buy anything with a tenant, no matter what tenancy agreement exists. In fact it devalues the property value especially if a fast completion is needed.

Most landlords I have dealt with prefer a tenant in situ, as there is income coming in from day one.
The old tenants money is what they are interested in.

[Deleted User]

I believe that as far as the rental increase goes .., u don't have to pay it until she officially inform you of it, in writing via a form whose title I forget