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Selling a tenanted flat

This is a bit complicated - and had I the chance to do over, things would be done differently, but I can't so.

I'm in Scotland. A few years ago I entered into a business arrangement with my brother and sister in law with a rented property. The flat and mortgage are in my name alone. Sister in law collects the rent and pays me the mortgage money and bills.

I've never met the tenant or letting agent - all that stuff is in her name.

Sister in law is about to become ex-sil. Brother and I want to sell flat, she doesn't. The tenants are good people as far as I know, so I want to do right by them as far as I can.

My question is this: can I serve notice on them? What rights do they have if the person they have a tenancy agreement with is not in fact the owner?

As I say, it's a mess and a stupid situation that should have been avoided, but it is what it is.

Comments

  • fairy_lights
    fairy_lights Posts: 9,220 Forumite
    Is the flat also in Scotland? Do you know what sort of tenancy agreement is in place?
    If the flat is in your name only I don't see how your SIL can stop you from selling it, and as the owner you are technically the landlord so can in theory serve notice.
  • silvercar
    silvercar Posts: 49,936 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    My question is this: can I serve notice on them? What rights do they have if the person they have a tenancy agreement with is not in fact the owner?

    First I would inform tenants that you have dispensed with the services of the letting agent ie your SIL and will be managing the property yourself. Provide them with details of where they should pay the rent ie your bank account. That cuts SIL out of the picture, then you can consider what notice you need to give to the tenants etc
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Annisele
    Annisele Posts: 4,835 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I think it depends on exactly what the "business arrangement" you have with your brother and SiL was.

    For example, you might have let the property to SiL, with the intention that she would sublet it to the people actually living there. That's a very different situation to SiL acting as your agent.

    Who is registered as the landlord? (That assumes the flat is in Scotland). Who declared the taxable income?

    Is there any chance SiL wants to buy the property from you and your brother? If not, then I think it's odd that she wants to keep the flat - that would involve staying in business with her ex and her ex's brother, and that doesnt' sound much fun to me.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    LLs in Scotland must be registered with the council. are you? Is your SIL?

    https://www.landlordregistrationscotland.gov.uk/Pages/Process.aspx?Command=ShowHomePage

    Could get messy.....
  • weeg
    weeg Posts: 1,078 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Thanks for this. I don't see her on the property register. Will add myself.

    She can't afford to to buy the flat. She enjoys the rental income, and isn't exactly falling over herself to lose that and is rather enjoying making my brother squirm.
  • harrys_dad
    harrys_dad Posts: 1,997 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    So you own the flat, she "pays" you enough to cover the mortgage and bills, and then pockets the rest as profit? Does she declare it for income tax?

    As advised above cut her out now, inform the tenant in writing that you are the owner, and the landlord, and where they should pay rent.

    Then you can decide if you want to sell it, once you have gained control of it.

    Be prepared for ex SIL to object, but not sure on what grounds. Does she have any paperwork at all regarding your "arrangement"?
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    What do you mean, "I don't see her on the property register. Will add myself." You do know that it is a criminal offence in Scotland to let out property and not be registered?!!!

    What exactly is the business arrangement you have with your SIL? Does she charge a % of the rent for acting as your LA? Incidentally, letting agencies also need to be registered in Scotland.

    No wonder she likes this arrangement as it seems she is doing very little work yet collecting money each month although that could be said about many letting agents. :D

    You need to find out if the tenants have an Assured Tenancy or a Short Assured Tenancy. One of the main differences between the two is whether or not the tenants were issued with an AT5 form. I have rented a few properties where the LL/LA think I've had a SAT when in actual fact I've had an AT due to a lack of AT5 which gave me, the tenant good ammunition.

    Once you've worked out which type of tenancy is in place, check out Shelter Scotland's website to find out how to go about ending the tenancy.
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