Buying subject to existing tenancy- rights of L and T?

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    Buying subject to existing tenancy- rights of L and T?

    Hi
    I'm one of those people that had money in the bank and fearful of losing it if the banks went belly up.
    Me and my wife complete on a house purchase the week after next.
    The property we've bought is a house. The property had been rented out and we will take on the existing tenant. He has been there for about two years and we've seen paperwork proving this.

    I've looked up several free tenancy agreement forms. I'm not to use the existing agent as as he wanted 8;5% = vat to manage the problem free renter.
    So me and the wife will do it ourselves.

    I've looked up the free deposit guarantee website.

    I'd be grateful if you could point me to an easy to use, printable AST form that covers most items in plain English.

    btw, I've insured the building via Guardstone. it's internet based but I've not seen the insurance policy certificate but just the schedule. I've contacted them and awaiting a response. Is there an insurance certificate for building insurance or just a policy schedule?

    Many thanks

    #2
    Originally posted by msg2004 View Post
    I've looked up several free tenancy agreement forms. I'm not to use the existing agent as as he wanted 8;5% = vat to manage the problem free renter.
    So me and the wife will do it ourselves.

    I've looked up the free deposit guarantee website.

    I'd be grateful if you could point me to an easy to use, printable AST form that covers most items in plain English.
    For a start, you should not assume that the tenant wants to sign a new tenancy agreement. He doesn't have to; and the existing tenancy will remain in place when you complete the purchase of the property (note that you must provide T, in writing, with an address for serving notices. Keep a copy of the letter and get proof of posting - do this with all correspondence with T, particularly anything relating to formal notices and disrepair).

    If you and T wish to sign a new agreement, then a solicitor specialist in landlord and tenant law is the best way to get a contract drafted. 'Free' AST contracts are likely to be a false economy.

    The deposit should already have been protected at the start of the tenancy. Unless a new agreement is signed, you do not have to re-protect the deposit. If the deposit is protected by either TDS or MyDeposits, you should ensure that the vendor passes on the deposit to you (because ultimately you are liable to repay it to the T).

    As a first time landlord, you need to acquaint yourself (and fast) with all the relevant legislation; such as LL's s.11 statutory repairing obligations, annual gas safety certificate, electrical and fire safety, LL's rights of access and T's right to exclusive possession and quiet enjoyment, etc etc etc. This website and forum is a good source of information, as is Shelter. You might also consider joining a landlords' association in order to keep up with developments in legislation, as well as getting access to their document libraries.

    Comment


      #3
      Thank you for the quick response.
      I have been busy getting my head around this.

      Me and my wife have met the tenant before we started the buying process and met up since and he wants to stay. I'm due to meet up on Thursday. I've already told him that we will keep the existing rent. As it was previously, renting out unfurnished. The curtains, carpets, nets come with the hooe we bought and 2 side boards, fridge, washing machine, but I will not pay for the repairs.

      The tenant is semi retired and self employed. The letting agent holds the deposit and I intend to register with DPS.

      A gas cert will be given to us by the estate agent as they let as well.

      Is the free AST agreements any good. Read one((thank you for your comments, noted), straight forward it appears and covers us and the T.

      more help appreciated and thank you again for the detailed post

      Comment


        #4
        Originally posted by msg2004 View Post
        but I will not pay for the repairs.
        What repairs?
        Allow tenants to protect their own deposits. I want free money when they do it wrong

        Comment


          #5
          Repairs to the fridge, washing machine. he either uses these for free and expect to maintain if he wishes or I'll get them removed to the dump.

          Comment


            #6
            Originally posted by msg2004 View Post
            Repairs to the fridge, washing machine. he either uses these for free and expect to maintain if he wishes or I'll get them removed to the dump.
            Just because the property was let 'unfurnished' doesn't mean there was no furniture in it! If the fridge, washing machine etc were in when he moved in, then he is not using them for free, their use is being paid for through the rent. In this case you have a contractual obligation to keep the items in good repair unless the tenancy agreement says otherwise. Obviously, damage caused directly by the tenant is their responsibility.

            Getting these items removed to the dump would involve you or your representatives entering the property. You can not do so without the tenants express permission.

            Comment


              #7
              msg2004
              As soon as you've completed, you or your solicitor MUST serve on T:
              a. V's Letter of Authority (directing that all rent now be paid to you);
              b. Notice under s.3 of LTA 1985 (your name as new L); and
              c. Notice under s.48 of LTA 1987 (your address in England & Wales at which T can serve any Notices on you).
              JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
              1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
              2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
              3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
              4. *- Contact info: click on my name (blue-highlight link).

              Comment


                #8
                There is no such thing as a "free lunch" well - there can be a bit - like Jeffrey's excellent advice for example! However, out of curiosity I have had a look at a few of these free AST documents which some sites offer landlords and in almost every case I have found clauses in them which are either outdated, unenforceable or wrongly worded. Some important clauses are also just missing. If you want a basic AST document which is not expensive, then go to a legal stationer like www.oyezformslink.co.uk from which you can download what you require. Solicitors with L/T experience will charge you much more for a similar form, but they will have added to the basic one in accordance with their own knowledge and experience.

                P.P.
                Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

                Comment


                  #9
                  New property purchase with exisitng tenant

                  Hello

                  Bought a property, completion is on Monday.
                  The property comes with a tenant on AST and his tenancy ends a day before that. (The lady has been a tenant for 18 months in a AST agreement)
                  I've left things very late because of family problems and to see the tenant on Sunday to sign a new AST starting on Monday. I will be getting a cheque as we've not yet set up DD payments.

                  I will be adding a clause to the AST, ie AST to commence Monday, subject to cheque clearing. ( cheque is cleared by mid week) If the cheque does not clear, ie the first months rent, the tenant would be considered as living at that address as a gesture of goodwill on behalf of the landlord. Failure for cheque to clear would result in landlord withdrawing their goodwill and can evict tenant at a period of notice at the discretion of the landlords.

                  my question is that are my terms fair and binding? what alternatives do i have as i do not want to lose this tenant and will be organising the tenancy myself as the letting agents wanted a lot of money but can not even be bothered to return my calls re some queries I had

                  Yes, I should have got the cash DD payment first but not happened and the lady does not have access to 1200 cash nor do i want to carry that mount and banks closed.

                  Thank you.

                  Comment


                    #10
                    The exisiting tenancy will be in force until you sort out a new one. It doesn't matter if the previous landlord's name is still on it, as it's still a valid document. No need to panic to do a new AST. Take your time if necessary.

                    You won't be able to evict your tenant without a court order so the clearing of the cheque is just confusing matters as it really has little bearing.
                    The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

                    Comment


                      #11
                      Many thanks for the prompt response.
                      Just a final query re this so at least I know where I stand as I rarely trust anyone, especially those that you barely know and smile a lot and give a lot of verbal assurances. Lets say the chq did bounce, the tenant would then immediately lose my confidence unless they could prove straight away it was the banks fault. So I lose my confidence in the T, how quickly can i remove - is it two months via court action?

                      Court action or official notice, what are the average costs for notice and court order.

                      Best to be prepared for the worse case scenario imo.

                      Comment


                        #12
                        Originally posted by msg2004 View Post
                        I will be adding a clause to the AST, ie AST to commence Monday, subject to cheque clearing.
                        That is a legal impossibility.

                        You can have an agreement that says "tenancy to start Wednesday week subject to check clearing beforehand" but not "tenancy to start today subject to check clearing by Wednesday week".

                        Comment


                          #13
                          Originally posted by msg2004 View Post
                          Many thanks for the prompt response.
                          Just a final query re this so at least I know where I stand as I rarely trust anyone, especially those that you barely know and smile a lot and give a lot of verbal assurances. Lets say the chq did bounce, the tenant would then immediately lose my confidence unless they could prove straight away it was the banks fault. So I lose my confidence in the T, how quickly can i remove - is it two months via court action?

                          Court action or official notice, what are the average costs for notice and court order.

                          Best to be prepared for the worse case scenario imo.
                          Presuming you don't sign a new agreement, you would serve a section 21(4)(a) notice before 30th July expiring "after 29th September 2010". This would only be vailid if any deposit paid is protected before serving. Once that date is passed, you can apply to the court for possession - takes about 6 weeks. Or you could use s8 (see below)

                          If a new contract is agreed, then your only guaranteed possession before the end of the fixed term would be under s8 (ground 8). This needs 14 days notice before commencing proceedings. For this to apply, the tenant would need to have at least 2 months rent unpaid at the time of service and at the time of the hearing.

                          Comment


                            #14
                            ..but if L was ever this property's owner-occupier, serving a g1 Notice before the letting starts would also be a good precaution (although it would not be operative during the letting's fixed term).
                            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                            4. *- Contact info: click on my name (blue-highlight link).

                            Comment


                              #15
                              Setting up Direct Debit

                              Hello
                              I've got a T in my property.
                              First payments were cash.
                              I'm with Barclay's Bank and so is the T
                              I have given my sort code, bank address etc to T (Same banks for me and T)

                              The payments have been agreed for the 20th and start from next month.

                              My question is, what proof will I have T has set up the DD?
                              As we both use the same bank, at what time of the day should I see the payment?

                              Thank you

                              Comment

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