Landlord selling up

CathA

My daughter and her boyfriend signed a year's contact in December to rent a flat. The landlord is selling up now and has told them about that. The flat needs some damp work done and from what i can gather he couldn't sell it to his son as the son couldn't get a mortgage due to the damp. The landlord is arranging an open house viewing soon, again my daughter has been told about that and everything is very amicable.
My questions are as follows -

As they've signed a year's contract, he can't make them move out?

If sold to a cash buyer (thereby getting round a mortgage companies stipulation that the property must be vacant on completion) can the new owner make them move out before the end of the contract?

Can the new owner change any details of the contact or would they have to wait until the end of the original contract?

If the old/new landlord asks them to leave before the contact end date, what would be reasonable for my daughter to ask for-i. e. Payment for new referencing, tenants fees, removal costs etc?

Thanks

theartfullodger

Just because owner is selling does not mean (unless there is a clause in tenancy saying tenant must..) tenant has to allow viewings: Tenant certainly doesn't have to keep the place tidy, etc etc..

Just because place is sold (cash buyer or not) does not mean tenant has to permit estate agent visits, internal photos, surveyor visits, valuations etc etc.. Not does it mean tenancy ends, nor does it require tenant to leave: Even if new owner is outside with a large removal van, screaming husband & 3 bonkers kids...

The new purchaser simply becomes new landlord (and must serve valid notices saying so..).

Daughter is in a strong position to state what she wants.. What does she want - rent reduction, reference, home to live in?? If I were her I'd change the locks: This evening (as we did at house I am in now: 5 minute job - keep old locks).

NB I am a landlord

kinger101

No, No and No, but check the contract carefully for any break clauses.

Finally, I'd say all three of those last things were reasonable. You might ask for something else to sweeten the deal, like one month of rent. But it sounds like getting out of there might be in your own interest anyway.

Point out to LL that your moving out (for a nice incentive) would mean the property is enticing to a wider market. BTL might be a bit stagnant at the moment, as everyone was rushing before the new SDLT deadline.

CathA

I've checked the contract and the break clause but it seems that unless it's for a serious reason there's nothing to say that they have to leave before the end of the year.

They are quite ok about the viewings as long as they have notice as they have a dog. I must stress that they are trying to be as reasonable as poss as my daughter has applied for some jobs which are a way away and eventually they would have moved to be a bit more in between his and her jobs. They get on well with the landlord and are all up together with the rent and inspections etc.
I have told her they can change the locks and refuse viewings, something I learnt from this site so thank you very much! However they don't want to be awkward as if they do want to move sooner rather than later they're in a very good position.
Just out of interest, if the landlord sells to another landlord and they DON'T need a mortgage (and therefore vacant possession ) there's no problem with them staying there? Does it happen often that places are sold with sitting tenants? Thanks

G_M

Is there a Break Clause in the contract. If so, the landlord can use it to end the tenancy according to whatever terms the BC specifies, but must still serve a S21 Notice as well.

If not the tenants are secure till Dec 2016.

A buyer would simply become the landlord. The law relating to change of landlord is in the Landlord & Tenant Act 1985 :

3 Duty to inform tenant of assignment of landlord’s interest.

(1)If the interest of the landlord under a tenancy of premises which consist of or include a dwelling is assigned, the new landlord shall give notice in writing of the assignment, and of his name and address, to the tenant not later than the next day on which rent is payable under the tenancy or, if that is within two months of the assignment, the end of that period of two months.

(2)If trustees consititute the new landlord, a collective description of the trustes as the trustees of the trust in question may be given as the name of the landlord, and where such a collective description is given—

(a)the address of the new landlord may be given as the address from which the affairs of the trust are conducted, and

(b)a change in the persons who are for the time being the trustees of the trust shall not be treated as an assignment of the interest of the landlord.

(3)A person who is the new landlord under a tenancy falling within subsection (1) and who fails, without reasonable excuse to give the notice required by that subsection, commits a summary offence and is liable on conviction to a fine not exceeding level 4 on the standard scale.

[F1(3A)The person who was the landlord under the tenancy immediately before the assignment (“the old landlord”) shall be liable to the tenant in respect of any breach of any covenant, condition or agreement under the tenancy occurring before the end of the relevant period in like manner as if the interest assigned were still vested in him; and where the new landlord is also liable to the tenant in respect of any such breach occurring within that period, he and the old landlord shall be jointly and severally liable in respect of it.

The tenancy terms remain exactly as before. No new contract is needed. No rent change can be made (unless the original contract allowed it).

G_M

CathA wrote: »

I've checked the contract and the break clause but it seems that unless it's for a serious reason there's nothing to say that they have to leave before the end of the year.

Please quote in full.

CathA

G_M wrote: »

Please quote in full.

I don't have it with me at the moment so unfortunately I can't. I'll ask her to bring it over on Friday. From what I can remember there was something about rent arrears/damage to the house /nuisance but nothing about it being sold.

I've told her not to sign anything, she's not daft and she'll be asking me to give her a list of stuff to ask for if they are asked to leave early. So far I've suggested removal costs, new referencing fees , money towards a deposit on a new flat, (they keep the flat spotless so should get the deposit back ok) anything else? I didn't think of a rent reduction/payment holiday so thanks for that. Anything else? Thanks.

G_M

CathA wrote: »

..... From what I can remember there was something about rent arrears/damage to the house /nuisance but nothing about it being sold.

......

A Break Clause, to be valid, must apply equally to the landlord and the tenant (eg either party can end the tenancy after 6 months by giving one months notice).

rent arrears/damage to the house /nuisance could not be dealt with via a BC.

A S8 Notice could be used, based on one (or more) of 17 reasons:

Schedule 2 (17 S8 Grounds a LL can use)

CathA

I'll get her to bring the contact over and have a proper look.

CathA

5 Break Clause
2.5.1 This agreement creates a single tenancy that starts with a fixed term and then becomes periodic. This would normally guarantee both parties the rights and obligations for the fixed term and a minimum of one period. The following two clauses allow either party to terminate the agreement earlier than that date, but not before the end of the fixed term (the date quoted in 1.6.1 as “to and including (11th December 2016 )”).
2.5.2 The Landlord may bring the tenancy to an end at, or at any time after, the expiry of the fixed term by giving to the Tenant at least two months’ written notice stating that the Landlord requires possession of the Property. A notice under section 21 of the Housing Act 1988 will suffice to implement this sub-clause.
2.5.3 The Tenant may bring the tenancy to an end at, or at any time after, the expiry of the fixed term by giving to the Landlord at least one month’s written notice stating that the Tenant wishes to vacate the Property. A letter will suffice to implement this sub-clause. While the tenancy is periodic the one month’s written notice must expire the day before a Rent Due Date.


I got her to email it to me. It reads that the break clause doesn't apply until after December 2016? Bit pointless then!

kinger101

As break clauses go, that's about as useful as a fart in a spacesuit. Either landlord or letting agent couldn't be bothered, or didn't know how to, delete it.