Sale of Part - Tenant in situ

da_rule

My Uncle owns a property which is currently rented out. It has quite a large garden, which he has planning permission on for a new house.

Someone has made him an offer to buy part of the garden (with the planning permission), which he wants to accept.

The current tenant doesn't mind this, and is happy for my uncle to fence off the garden at the appropriate point to show where the new plot will be. The tenant has asked for a slight decrease in rent to allow for the fact that the garden has decreased in size (which my uncle thinks is fair).

There's 4 months left on the tenancy and my uncle likes them so will be offering them an extension. However, 4 months is too long for the potential buyer to wait.

Can my uncle amend the current tenancy (he wants to include a plan showing what land relates to the tenancy and also to decrease the rent)? As I say the tenants have already said they are happy with this and will sign any amendments, so can amendments be made?

If not, is there any way around it without having to wait the 4 months for the tenancy to end?

As an aside, will the planning costs (application fee, architects fees etc) be deductible for CGT purposes?

pmlindyloo

According to CAB's website here:

http://www.adviceguide.org.uk/england/housing_e/housing_renting_a_home_e/tenancy_agreements.htm

you can amend a tenancy agreement if both the LL and tenant agree. This can be done by drawing up a new agreement or amending the original one.

Sorry, can't answer the second part.

G_M

Deed of Variation to the existing tenancy is the formal way to go.

But if the LL/T relationship is good (as seem to be the case) you could simply write document outlining the change in rent and garden size, and each sign a copy.

(Only real difference with a Deed is the word 'Deed', and the need for signatures to be witnessed).

Not sure about CGT but I think deductable. Ring HMRC and ask!