Selling flat with protected tenant

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    Selling flat with protected tenant

    A quick question for a legal-eagle:

    If I want to sell a flat which has in it a registered tenant (of 40 years or more) do I have to offer it to the tenant at a discount first or is there anything else to consider here?

    Thanks in advance


    Yes - you are right. I seem to remember much legal discussion here between our board expert, Paul F and others regarding this very matter and I suggest the use of the search engine to find the thread concerned. If I remember correctly, there are dire penalties for not offering the property to the regulated tenant first at a discount before it is offered to a third party.

    Further research had shown that a search on "selling reguated tenant" will throw up the two threads which cover this matter.

    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.


      Thanks very much for that, seems I have to give 'right of first refusal' but no discount, although the price will obviously be lower with a sitting tenant.

      Thanks guys


        1. I just came across this old thread. There is NO "right of first refusal" for a sitting tenant of any kind except under LTA 1987. One has to be a qualifying tenant, as defined in s.3.

        2. QT is usually a long leaseholder who, together with others of same status, will have collective RFR if freehold reversion is up for sale. The expression excludes:
        a. proteceted shorthold (s.52 of HA 1980);
        b. business tenant (Part II of LTA 1954);
        c. tenancy terminable when T's employment ends: and
        d. AST/SAT (HA 1988).

        3. QT therefore DOES include Rent Act 1977 tenant.

        4. Statutory discount for sitting tenant (purchasing own house/flat on RTB) applies only to public sector landlord- chiefly, local authorities (and some housing associations).
        Last edited by jeffrey; 06-07-2007, 11:16 AM.
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
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