Buying house with sitting tenant

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    Buying house with sitting tenant

    Residential house for sale with tenant holding over. AST for 6 months granted by letting agents of current owner in November 2019. Since it expired tenant been holding over and paying rent etc. As a potential purchaser who wants to buy it as investment with tenant in situ are there any issues for me to be aware of. Should I ask tenant to sign new AST with me?

    Firstly this is not a 'Sitting Tenant' - that refers to a tenant protected under a regulated tenancy and is a very different kettle of fish! This tenant has a Periodic Tenancy.

    Assuming they want to stay I would be looking to sign a new tenancy agreement on completion and issuing all new paperwork. Make sure your solicitor has all the details about the tenancy and take their advice. As long as the current tenancy was set up correctly there shouldn't really be any problems, but you need to make sure you deal with the deposit correctly and have all the relevant paperwork for the start of a new tenancy.


      That vendr is selling with tenant may indicate he can;t evict (usually higher price/easier sale if vacant).

      As tenant (yes tenant, what vendor or agent or solicitor state may be perhaps not trustworthy..) when they 1st moved in.

      If early enough, regardless of any shiny new AST, it will be an AT (so no s21) or a "rent act" tenant, almost impossible to evict. But clearly if the place was only built 3 years ago not an issue.

      All very well to plan to sign new paperwork but tenant has an entirely valid tenancy, even after change of owner, and does not have to agree to any changes or new AST. And if paperwork and/or proof or service is flaky you might find s21 not possible...

      - of course offering tenant a new, cheaper, tenancy may work. Much much cheaper than not being able to evict.

      I bought with sitting tenants but they were students, : Nice little earner since 2006 until Covid.
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...


        Be wary of such a recently let property being offered for sale as an investment.
        It's common practice to put a 'tenant' in at a nice return to make a sale (higher sale price).
        Check demand and comparable area rents carefully.


          Yes, you should arrange for new AST rental agreement because the last one is in the previous owner's name and no longer valid. You have no legal right to hold the tenants deposit without AST agreement. .


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