How to end Tenancy

propertyrental

Spendy_no_more said:

Thanks for this really helpful information. I'm confused about the need to issue a S21 though if it's currently a rolling contract that's in place? The AST period ended and it's now rolling so surely that means one months notice can be given (although I'd like to provide much more) without a need for a S21 or am I missing something?

doodling said:

Hi,

Spendy_no_more said:

Hi all,

Been reading through some threads and there's a wealth of knowledge here so thought I'd ask a question I have. I'm a Landlord and been renting out a property for over 3 years now. First 3 years were a new tenancy each year but now we're on a rolling contract. I am now looking to sell the property. As it's now a rolling tenancy, do I need to serve a S21 or can I just give them notice? I was also thinking of letting them know I'm going to be selling so they can start to make plans etc but not officially give them notice until we accept an offer. It's always been very amicable so am not expecting any problems but just wanted to understand the proper way to move forward with a rolling tenancy in place.

Thanks all.

Giving notice, if it is not in the correct form referencing the correct ground under the housing act has zero legal meaning and tenants can choose to ignore it.  The only way the landlord has to end a tenancy is to start by serving a formal legal notice e.g. a S21.

Letting your tenant know that you will be selling is a sensible thing to do, with most tenants, the more notice you can give, the smoother the process goes.  You can make things easier for the tenant by agreeing that you will not insist on them giving the legally / contractually required notice for them to terminate their tenancy and that you will only charge pro-rata rent for any part rent periods.  That means that they can easily take on a new tenancy without ending up paying two sets of rent.

Whilst most tenants will be accommodating of viewings, some may choose not to be.  That would make selling the property impossible before the tenants have gone.  Note that even if there is a clause in the tenancy requiring that the tenants permit viewings (a) the tenants can ignore it with very little legal comeback and (b) it almost certainly won't take effect until you have issued a S21 (or the tenants themselves have given notice).

You can choose not to send a S21 until you have accepted an offer (this is the"have your cake and eat it" approach) but your tenants may choose not to allow viewings until you have issued one.  Even when you have issued a S21, it could be over six months between issuing the S21 and getting your property back (e.g. if the tenant points out that your S21 is invalid on your first attempt).  Due to this uncertainty, many buyers will be wary of making a commitment to a property with a tenant still living there (e.g. they make not make an offer or may make an offer but wait until the tenants have gone before instructing solicitors or having a survey).  Of course, if the housing market is strong in your area then this is less of a concern whilst if the market is weak then it may mean you don't get any offers at all until the tenants have gone.

Yes you are missing something.

The Housing Act 1988.

This gives tenants protection from rapid eviction from their home by requiring the LL to apply to court and asking the court to end the tenancy. Which the LL can only do after serving a S21 (or S8) Notice.

Spendy_no_more

OK, let me rephrase my question. Am I missing something in that you are referring to tenants that refuse to move / leave? Surely there could be the possibility that we give our tenants 2 months notice as per the requirements and they look around and actually find somewhere and do move within the 2 months, negating the need for any S21 or S8? I can't help feeling as though everyone is assuming the tenants will dig their heels in and do everything they can to stay. Yes I understand that might be the case but it could equally be the case that they don't do this and find somewhere else to live without an fight.

TisMeBill

We were in a similar position and sold our rental last year, we had always had a good relationship with tenants, we gave them informal notice of our intentions and then but went through the formal S21 process. They were very understanding and moved out in the agreed timescales, I realise that this may not be the case for all tenants, but the sooner you communicate, the sooner you will get an idea of how accepting they are of the circumstances.  

One thing we didn’t realise beforehand was that our solicitor would not let us exchange contracts until the tenants had actually moved out, but we exchanged and completed in 7 days so the property was only empty for a week.

We don’t regret for one second stopping being landlords, money is now sat in the bank earning a guaranteed 6.2% with no worries about problems with house.

theartfullodger

Tenant can move out any time they like (but need to serve valid notice to end tenancy and end liability for rent).

Thatcher's 1988 Act (s5 I think) describes that for a landlord to end a tenancy he must serve valid notice (many many are invalid), then court, then bailiffs/HCEO.  (Assuming England). Probably about 6 months ish).

You'll know what to do if you don't like the rules & regulations.

Best wishes to all.

Spendy_no_more

As previously stated, this process you've outlined presumes the tenants will dig their heels in and do everything they can to stay, having to eventually be forced out the bailiffs/HCEO. As I said I understand that might be the case but it could equally not be the case, as demonstrated by TisMeBill's experience above. I feel everyone just assumes the worst of tenants!

theartfullodger said:

Tenant can move out any time they like (but need to serve valid notice to end tenancy and end liability for rent).

Thatcher's 1988 Act (s5 I think) describes that for a landlord to end a tenancy he must serve valid notice (many many are invalid), then court, then bailiffs/HCEO.  (Assuming England). Probably about 6 months ish).

You'll know what to do if you don't like the rules & regulations.

Best wishes to all.

KittenChops

Spendy_no_more said:

OK, let me rephrase my question. Am I missing something in that you are referring to tenants that refuse to move / leave? Surely there could be the possibility that we give our tenants 2 months notice as per the requirements and they look around and actually find somewhere and do move within the 2 months, negating the need for any S21 or S8? I can't help feeling as though everyone is assuming the tenants will dig their heels in and do everything they can to stay. Yes I understand that might be the case but it could equally be the case that they don't do this and find somewhere else to live without an fight.

If you give the tenants some kind of informal notice but not a S21, and they then change their mind about moving - you'd then need to issue a S21 so that on its expiry (if they've still not vacated) you can progress to the next step (applying to court for possession).  If you've already issued a (valid) S21, you can immediately progress to the next step without losing 2 months.  There'd still be nothing to prevent you mutually agreeing an earlier date with the tenants if that's what you both want.

doodling

Hi,

Spendy_no_more said:

OK, let me rephrase my question. Am I missing something in that you are referring to tenants that refuse to move / leave? Surely there could be the possibility that we give our tenants 2 months notice as per the requirements and they look around and actually find somewhere and do move within the 2 months, negating the need for any S21 or S8? I can't help feeling as though everyone is assuming the tenants will dig their heels in and do everything they can to stay. Yes I understand that might be the case but it could equally be the case that they don't do this and find somewhere else to live without an fight.

You are absolutely correct and in most cases that is what will happen.

If there is no real urgency to sell the property then a relaxed approach is fine.  If you need any form of certainty then the formal approach is the only way to go (although it is by no means a certain process).