Have buyer for properties need advice regarding new tenancies

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  • Have buyer for properties need advice regarding new tenancies

    Due to financial circumstances I am needing to sell my 2 buy to let properties and have found a buyer much more quickly than anticipated. The current tenancies (both student lets) will end shortly. We have tenants who have signed agreements for the next academic year and they have paid their deposits. The buyer of my properties is aware that both properties are let for the next academic year.
    My questions are:
    1. What should be done with the agreements for the new tenants naming myself as landlord? - who is responsible for issuing a new agreement?

    2. What should I do about the deposits paid by the new tenants? Should I return the money to the tenants for the new Landlord to sort out or should I transfer the money to the new Landlord?

    3. What should be done with all the guarantor paperwork? - all guarantors are naturally given an assurance that the documentation they provided will be securely kept. My feeling is that I should return it to them and let the new landlord seek guarantors.

    I realise that there probably is not one clear answer but I would appreciate any advice. Unfortunately my solicitor does not get involved with sorting tenancy agreements/deposits etc.

  • #2
    Originally posted by Jancam View Post
    Due to financial circumstances I am needing to sell my 2 buy to let properties and have found a buyer much more quickly than anticipated. The current tenancies (both student lets) will end shortly. We have tenants who have signed agreements for the next academic year and they have paid their deposits. The buyer of my properties is aware that both properties are let for the next academic year.
    My questions are:
    1. What should be done with the agreements for the new tenants naming myself as landlord? - who is responsible for issuing a new agreement? Was it, or were they executed as a Deed, because if not then the tenancies might enable either party to withdraw if it/they start at a future date until the applicants have taken up possession.

    2. What should I do about the deposits paid by the new tenants? Should I return the money to the tenants for the new Landlord to sort out or should I transfer the money to the new Landlord? Not sure on this point, but see below.

    3. What should be done with all the guarantor paperwork? - all guarantors are naturally given an assurance that the documentation they provided will be securely kept. My feeling is that I should return it to them and let the new landlord seek guarantors. If you are going to do this then you really shouldn't be getting involved in any tenancy agreement, as the money might be paid into a different scheme.

    I realise that there probably is not one clear answer but I would appreciate any advice. Unfortunately my solicitor does not get involved with sorting tenancy agreements/deposits etc. No, but I'm sure he ought to be able to advise you on these points. If he is unable to do that then I would be expecting him/her to find out.
    P.S. You don't need a HIP to sell a property that is currently tenanted, i.e. occupied by tenents
    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.

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    • #3
      Will the sale/purchase contracts be exchanged before the new lettings start or vice-versa?
      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).

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