Is this normal for a tenant in situ?

steve866

Can I ask where your relative plans to go in a couple of years? They might be reluctant to move once they are looking at market rate rents? 

a_fierce_bad_rabbit

She will be moving in with her partner in a few years.
Currently needs to stay there for work reasons and family obligation. That is the plan as far as i am aware. If the worst scenario happens, she will manage. 

Thanks all for this information, I am passing it all on to her and she is going to ring Shelter and seek more information.

getmore4less

what sort of gross yield does the low rent/£90k  work out at.

If its still decent that could make it attractive.

getmore4less

across the whole UK rightmove has 750 £90k properties listed with tenant.

£80-£100k  is going to be a few k 

busy sector.

Sistergold

For those who know, since the tenant has a good relationship with current landlord is it possible maybe for a new contract to be done so that she can indeed be guaranteed to stay the 2 years that she needs? Can this contract be done as part of the sale? That way there is no need to worry about old contract. 🤷‍♀️

canaldumidi

Sistergold said:

For those who know, since the tenant has a good relationship with current landlord is it possible maybe for a new contract to be done so that she can indeed be guaranteed to stay the 2 years that she needs? Can this contract be done as part of the sale? That way there is no need to worry about old contract. 🤷‍♀️

Yes.

If the tenant and current landlord were to sign a new fixed term AST for, say 2 or 3 years (3 years is the max without Executing it as a Deed), then any new owner would be bound by that contract.

Of course, the tenant would be equally committed for the period of the fixed term, unless she reached an amicable agreement with the new landlord to surrender the tenancy early.

Make sure no 'Break Clause' is included in the new tenancy agreement (they often are in longer fixed terms) as that would allow the new owner/Landlord to utilise the BC to end the tenancy early.

It wouldmake sense to do this in advance of the sale so tha prospective buyers could see the tenancy agreement and decide whether to buy or not based on full knowledge.

Of course, it is likely to drastically reduce the number of interested buyers, and probably also reduce the ultimate selling price, so the current owner, who wants to sell, might be unwilling.......

45002

a_fierce_bad_rabbit

The exact date is Very important and could be the difference between been evicted using a No faults s21 or living the rest of the life in the same home.

Is the property in E&W, Scotland or NI as the dates differ depending on where she lives.

Until we know the exact date, then it's just all a guessing game ?

a_fierce_bad_rabbit

45002 said:

a_fierce_bad_rabbit

The exact date is Very important and could be the difference between been evicted using a No faults s21 or living the rest of the life in the same home.

Is the property in E&W, Scotland or NI as the dates differ depending on where she lives.

Until we know the exact date, then it's just all a guessing game ?

the current owner has clarified it is an AST. The date was 13 feb 1999.
North West England.

a_fierce_bad_rabbit

canaldumidi said:

Sistergold said:

For those who know, since the tenant has a good relationship with current landlord is it possible maybe for a new contract to be done so that she can indeed be guaranteed to stay the 2 years that she needs? Can this contract be done as part of the sale? That way there is no need to worry about old contract. 🤷‍♀️

Yes.

If the tenant and current landlord were to sign a new fixed term AST for, say 2 or 3 years (3 years is the max without Executing it as a Deed), then any new owner would be bound by that contract.

Of course, the tenant would be equally committed for the period of the fixed term, unless she reached an amicable agreement with the new landlord to surrender the tenancy early.

Make sure no 'Break Clause' is included in the new tenancy agreement (they often are in longer fixed terms) as that would allow the new owner/Landlord to utilise the BC to end the tenancy early.

It wouldmake sense to do this in advance of the sale so tha prospective buyers could see the tenancy agreement and decide whether to buy or not based on full knowledge.

Of course, it is likely to drastically reduce the number of interested buyers, and probably also reduce the ultimate selling price, so the current owner, who wants to sell, might be unwilling.......

Absolutely looking in to this, thank you!

Things are going well, someone has put in an offer who really likes the current tenant situation and the current owner has asked friend to mention which prospective buyers she prefers. Hopefully things will work out.