Selling with tenants insitu

Sweeney1

Just sold rental house and new landlord happy to keep tenants. What happens with the rolling contract and deposit? 

Pixie5740

Sweeney1 said:

Just sold rental house and new landlord happy to keep tenants. What happens with the rolling contract and deposit? 

The tenancy simply continues on the same basis albeit with a new landlord. 

What kind of deposit scheme was used, insurance or custodial? 

theartfullodger

If deposit is not handled correctly (before & after sale) tenant may sue old & new landlord - see
https://england.shelter.org.uk/professional_resources/legal/costs_of_renting/tenancy_deposits/tenancy_deposit_protection_when_a_landlord_changes

canaldumidi

New LL takes o all the legal and contractual obligations (including the deposit) that existed previously. The tenancy does not change (ie still rolling, still same rent). When the tenancy ends, the new LL must return the deposit (less any justifiable deductions) just as the old LL would have had to.

macman

Sweeney1 said:

Just sold rental house and new landlord happy to keep tenants. What happens with the rolling contract and deposit? 

You haven't 'sold' it. Sounds like you have just accepted an offer made to you. Which can be withdrawn at any time up to exchange, by either party.
Unless you were selling it as a buy to let, you wouldn't normally be marketing it with tenants in occupation anyway, because it could take years to gain possession.

canaldumidi

macman said:

Sweeney1 said:

Just sold rental house and new landlord happy to keep tenants. What happens with the rolling contract and deposit? 

You haven't 'sold' it. Sounds like you have just accepted an offer made to you. Which can be withdrawn at any time up to exchange, by either party.
Unless you were selling it as a buy to let, you wouldn't normally be marketing it with tenants in occupation anyway, because it could take years to gain possession.

Clearly OP is selling to a landlord so vacant possession not required.

tacpot12

I marketed my rental property through my letting agent who found a buyer who was happy to buy with the tenants in place. 

One thing you must do is inform the tenants of the change of landlord within 2 months of the sale completing. My letting agent was happy to do this for me.

theartfullodger

I'd not trust a lettings agent to understand notices required when selling.  In England remember to be a lettings agent no training no qualifications no criminal record check required.  You could be dealing with some bunch sentenced for GBH and fraud on early release from Brixton jail .

canaldumidi

tacpot12 said:

I marketed my rental property through my letting agent who found a buyer who was happy to buy with the tenants in place. 

One thing you must do is inform the tenants of the change of landlord within 2 months of the sale completing. My letting agent was happy to do this for me.

Landlord & Tenant Act 1985  S3.

Nearlyold

Sweeney1 said:

Just sold rental house and new landlord happy to keep tenants. What happens with the rolling contract and deposit? 

Useful Info here - process may differ with other Deposit Schemes

#AskTDS: "What happens to deposits if I buy/sell a tenanted property?" (tenancydepositscheme.com)

saajan_12

Sweeney1 said:

Just sold rental house and new landlord happy to keep tenants. What happens with the rolling contract and deposit? 

Contract- The contract continues on the same terms as before, there's no obligation on the tenant to resign with the new LL. The new LL must write to the tenant providing their name & address in writing. 

Deposit- The new LL becomes liable for protecting and returning it to the tenant when they leave. As such, there is *usually* an agreement for the seller to reimburse the buyer for the deposit amount less any deductions expected already), effectively deducted from the purchase price. However discuss this with your solicitor.