Rented flat in Forced Sale - advice please

Sarah_81

Hi
I signed a 6 month contract for a flat on 30th November 2016. On 15th December I got a letter to 'the occupier' from a solicitor on behalf of the bank. The letter said that the bank were exercising their Power of Sale to market the property for sale with immediate effect. I contacted the letting agent as I have no direct correspondence for the actual LL (the contract has the LL name, with their address as c/o the letting agent)

The letting agent assured me I was safe for my fixed term, but that the property was now for sale and to expect viewings etc. They claim they had no idea the flat was being forced sold until I showed them the letter, otherwise they wouldn't have rented it to me. I did look at buying the flat myself at first as it is a lovely place, but once I took into account the ground rent (that doubles every 10 years), the £70 a month service charge, and all the necessary insurance on top, I wouldn't be able to afford it so I am unable to buy it myself.

Therefore I need to know what to do at the end of my fixed term. I have contacted the letting agent to ask but had no response. They have previously told me it is 'doubtful' I can stay past the fixed term (I had asked if I could stay until it sold), so instead of waiting for the letter telling me to move, I have decided to just leave once the 6 month term is up and find somewhere else to settle.

My question is would I still have to give notice if they have told me it is doubtful I could stay past the 6 month term anyway? My contract is due to end 29th May I believe, if I signed for 6 months on 30th November? So I would need to give notice at the end of April?

Thanks for reading!

FutureGirl

Your tenancy will tell you how long notice you need to give - some are 2 months.

If your agreement expires May 29th you need to give notice 28th/29th April if one months notice is required, of 28th/29th March if 2 is required and so on.

AnotherJoe

I would not give notice yet.

It may be that the company making the forced sale will give you an incentive to leave.

pmlindyloo

This may not be as straightforward as just leaving at the end of your fixed term. It may depend on the reason for the forced sale/whether it is for mortgage arrears etc.

What exactly does the letter say?

You may want to take the letter to CAB for some advice. Do not rely on the letting agents to know what they are doing!

KRB2725

As far as I am aware, you do not have to give any notice to move out at the end of a fixed term.

[Deleted User]

You need to send your tenancy agreement to the people who sent the letter. Do not rely on the LA. I would also only allow viewings in the last month of the Tenancy agreement.

Phone Shelter on Monday or email them to get an idea of what you can and can't do. Ask a few bullet pointed questions if emailing.

Sarah_81

Hi
Thank you for the replies. I have indeed sent a copy of my tenancy agreement to the solicitor working for the bank selling the place. I have been told it is because the vendor has died. The letting agent are saying they are now dealing with the widow of the vendor

My contract says I should give 1 month notice. After the 6 month fixed term it was supposed to go onto a rolling contract.

At first I asked if it would be sold with me as a tenant, or if I could stay until it was sold (may take some time to sell) but the answers I got were 'that is doubtful' and after thinking about it I don't want to live here after the 6 months are up as I'd be constantly on edge waiting for the letter telling me to move.

Hoploz

If the ground rent doubles every ten years it's likely it won't sell on the open market once this is known as lenders don't like that clause in leases. Not your problem I know, but just thinking if it's with a normal estate agent it could be it doesn't sell for a while and could then go to auction. So your 6 month term should be fine and you can look elsewhere near the end of it.

zagubov

Hoploz wrote: »

If the ground rent doubles every ten years it's likely it won't sell on the open market once this is known as lenders don't like that clause in leases. Not your problem I know, but just thinking if it's with a normal estate agent it could be it doesn't sell for a while and could then go to auction. So your 6 month term should be fine and you can look elsewhere near the end of it.

That also means that even if you did get a deal from the bank to buy it, you'd need to consider buying the freehold to get the ground rent sorted. That's for much later, but it'll arrive sooner than you think.

Sarah_81

Hi
I was considering buying it because they said they'd accept a low offer from me, but because of the ground rent doubling every 10 years and the £70pcm service charge I do not want to touch it with a bargepole to buy. It would work out very expensive as since I live alone and don't bring in a lot it would be too much pressure for me to buy it money wise. I do not have the deposit, that would have been gifted from my parents but once we found out about the ground rent doubling every 10 years (also collected by Homeground who have some pretty shocking reviews) and taking that service charge and all the insurance I would need it would be MORE per month than renting and I just can't afford it. I live alone and only bring in just over a grand a month so I don't want the pressure of buying it and being stuck with these charges. I would also think I may have issues selling it further down the line because of that ground rent clause, the very reason I am put off from buying it

AnotherJoe

I think thats very wise Sarah, theres a lot of publicity about these leasehold issues now so selling is only going to be harder in future. Thats aside the issue of only just being able to afford it.
Good luck, but dont rush to hand in notice, they may still incent you to move to aid selling, and even if they dont you have several months after getting a letter.