What type of rental agreement is this?

annetheman

My buyers had a 2 month notice period in their rental contract, according to my EA. They gave their notice just under a month ago.

Following an update email from me about my onward purchase, my EA now says my buyers will be homeless if they don't complete by the date their notice period ends. 

I asked in what scenario, because assuming it is an AST, it would become a periodic tenancy, the rolling period being the frequency the rent is paid; then only a Section 21 could end that within circa 2 months, and several months more if a court judgement is needed to evict.

The EA then said this isn't an AST, but renting from "someone in the community".

Does anyone know what type of rental agreement would leave my buyer homeless at the end of their notice period? The buyer has 2 kids and a wife, living in a flat.

I want to ensure we complete in time obviously because I wouldn't want my buyers to be 'homeless', but also my mortgage offer is going to run out if we don't.

So, I'm trying to understand all possible outcomes without resorting to the conclusion that my EA is talking <insert colourful word here>.

Thanks for any suggestions!

Gentoo365

Dunno, maybe not an AST, maybe an informal arrangement (which while can be a constructive tenancy could result in some social/community issues with them). Even if it is they won't want a CCJ.

They gave notice. It's their problem (and/or their landlords problem). Don't consider it your fault, you can't speed up house purchases and sales. They take ages. The estate agent has probably over promised.

_Penny_Dreadful

annetheman said:

My buyers had a 2 month notice period in their rental contract, according to my EA. They gave their notice just under a month ago.

Following an update email from me about my onward purchase, my EA now says my buyers will be homeless if they don't complete by the date their notice period ends. 

I asked in what scenario, because assuming it is an AST, it would become a periodic tenancy, the rolling period being the frequency the rent is paid; then only a Section 21 could end that within circa 2 months, and several months more if a court judgement is needed to evict.

The EA then said this isn't an AST, but renting from "someone in the community".

Does anyone know what type of rental agreement would leave my buyer homeless at the end of their notice period? The buyer has 2 kids and a wife, living in a flat.

I want to ensure we complete in time obviously because I wouldn't want my buyers to be 'homeless', but also my mortgage offer is going to run out if we don't.

So, I'm trying to understand all possible outcomes without resorting to the conclusion that my EA is talking <insert colourful word here>.

Thanks for any suggestions!

A section 21 cannot end an AST as that can only be done by the tenant or a court. When the tenant serves valid notice to end an AST the tenancy legally ends at the end of the notice period. The tenant then becomes a trespasser and the landlord is entitled to mesne profits. 

I have no idea what the estate agent means by, “renting from someone in the community,” but whatever type of licence or tenancy the buyer might have it generally comes to end when the licensee/tenant serves valid notice. If your buyer has served notice before exchange of contracts that was a foolish thing to do. 

Bookworm105

annetheman said:

The EA then said this isn't an AST, but renting from "someone in the community".

conclusion that my EA is talking <insert colourful word here>.

please insert it 

fact remains tenant has served notice so whatever tenancy type they have the tenant has chosen to end it themselves,

what sanctions would apply to the tenant if they then fail to physically move out is a different matter

RAS

Any FTB or renter asking about notice here is told NOT to give notice until exchange. That means paying rent and mortgage for a month. There may be occasions when the LL wants the tenant out and agrees to an early surrender which terminates rental liability, but that's the LLs call.

Obviously, you will encourage your seller to progress as quickly as possible but the buyer has screwed up and needs to look at storage, house-sitting, budget hotels or Air B&B.

propertyrental

See bold below

annetheman said:

My buyers had a 2 month notice period in their rental contract, according to my EA. They gave their notice just under a month ago.  This is a fairly common contractual term as it brings the tenant's notice in line with that required (by law) by the landlord

Following an update email from me about my onward purchase, my EA now says my buyers will be homeless if they don't complete by the date their notice period ends. They'll only be homeless if they move out - but staying put has implications

I asked in what scenario, because assuming it is an AST, it would become a periodic tenancy, the rolling period being the frequency the rent is paid; 

You have misunderstood. Their AST is either already in a fixed term (n which case they cannot serve notice unless there is a 'Break Clause'), or it is already periodic, in which case they can serve notice as per their contract.

then only a Section 21 could end that within circa 2 months, and several months more if a court judgement is needed to evict.

That applies where the landlord is 'serving notice'. In this case it is the tenant serving notice, so 21 is not relevant.

The EA then said this isn't an AST, but renting from "someone in the community". That sounds like nonsense but more information needed.

Does anyone know what type of rental agreement would leave my buyer homeless at the end of their notice period? The buyer has 2 kids and a wife, living in a flat. If the tenant serves notice they have 2 options when their notice expires

1) move out (and live elsewhere or become homeles), or

2) remain in contravention to their notice, become liable for double rent, and face potential eviction by the LL (who can rely on their notice rather than a S21)

Hope that clarifies. Note - don't believe everything te EA tells you!
Distress For Rent Act 1737 S18 & Landlord and Tenant Act 1730 S1(Double rent if tenant stays after giving notice) plus explanation here