As landlord, can I retract notice for tenant to leave?

piggylily

I am landlord with a lovely tenant who has been there years. She was on a monthly rolling contract as she’s been there so long and was given notice that we would be selling and to leave by a date set some months after that letter. We and her are happy for her to stay as long as she needs and up until near completion date. Unfortunately a buyer has just pulled out so we can’t all proceed by the date as we expected. Is it ok to retract the notice for her to leave and maintain the previous agreement, and reissue a notice with a new date once we have another buyer in place? I can’t find anything online to suggest whether that’s ok/not. She’s happy to stay on the same terms as before. We want to avoid having to do a new agreement with her with a minimum term as we need to be prepared to proceed if/when all buyers are in place. 

PRAISETHESUN

By issuing a S21, all you are doing is notifying the tenant that you will start the formal proceedings to get them evicted. It does not, and cannot, compel the tenant to leave. Only the tenant themselves, or a court can legally end the tenancy.

You are more than welcome to simply let the notice expire and then not take any further action if it works for you. But keep in mind that many buyers will be put off by a sitting tenant, and will not want to exchange without vacant possession.

propertyrental

piggylily said:

..... was given notice that we would be selling and to leave by a date set some months after that letter. .....

Did you issue just 'a letter'?  If so (and assuming this is England) then it has no legal meaning and both the tenant and you can ignore the 'notice' which is invalid.

If you issued a S21 Notice, that too does not end the tenancy. It merely allows you, after the requisite 2 moths, to apply to a court to end the tenancy. Only a court (or the tenant) can end the tenancy - not the landlord. So if you don't apply to court after the 2month period, then the tenancy will continue.

None of the above, of course, prevents you and the tenant sitting down over tea and cake and discussing the situation, and then mutually agreeing a date to end the tenancy which can be done on any date you wish, provided both parties agree.

From a practical point of view, however, have you thought this through? Finding a new buyer will be harder with a tenant in occupation. Many buyers will be reluctant to commit as they have no guarantee the tenant will leave when asked, or even when instructed by a court (bailffs etc etc)

And even if you do get a firm offer, what will you do if, as Exchange approaches, your tenant says: " but I have nowhere to go. Rents have increased, demand/competition for rentals is skyhigh, I just can't move out yet....."

Worse still, what if you Exchange and the tenant is still there and does not move out before Completion.....

End the tenancy and advertise your property once it is empty. Yes, you'll lose some rental income, but you could get a higher sale price, and/or sell faster, and/or save yourself a lot of grief.