Structural work to be carried out during a Regulated Tenancy

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    Structural work to be carried out during a Regulated Tenancy

    Hi! I have read through lot of posts but didn't really find answer to my situation. Maybe someone can give me some advice?

    I am intending to buy a flat with a regulated tenant. He's lived there for 20 odd years and nothing really has been done in that period, in terms of renovation, building maintenance etc.(I suppose the owner couldn't be bothered because the rent was so low).

    There'a major crack in the ceiling running across the whole width (above which is another flat). And the ceiling did fall down twice in past years. Other things incl. windows that look like it's turning into dust, damp and general dilapidation.

    The tenant is very attached to the flat and plainly states he's going to stay there until he dies.

    I want to find out in the case that the property falls into major disrepair that causes danger (to tenant or others in the building), or falls against building and environmental regulations,

    1) can I force the tenant to move out to carry out the work?
    2) what if he refuses?
    3) Will I be able to get a substantial rent increase, closer to the property's market value? (It is currently rented at 400/m, while the local minimum is 1000/m)

    Many thanks for anyone who can help!

    Chris

    #2
    Originally posted by lordbaldrick View Post
    Hi! I have read through lot of posts but didn't really find answer to my situation. Maybe someone can give me some advice?

    I am intending to buy a flat with a regulated tenant. He's lived there for 20 odd years and nothing really has been done in that period, in terms of renovation, building maintenance etc.(I suppose the owner couldn't be bothered because the rent was so low).

    There'a major crack in the ceiling running across the whole width (above which is another flat). And the ceiling did fall down twice in past years. Other things incl. windows that look like it's turning into dust, damp and general dilapidation.

    The tenant is very attached to the flat and plainly states he's going to stay there until he dies.

    I want to find out in the case that the property falls into major disrepair that causes danger (to tenant or others in the building), or falls against building and environmental regulations,

    1) can I force the tenant to move out to carry out the work? yes, by agreement or with a court order but he is likely to be granted the right to return to the flat once repaired. If rehousing him temporarily elsewhere the same rent is payable
    2) what if he refuses? if you cant work round him get a court order. bizarrely you can be held liable for damages in the tenants favour for failing to keep in repair even if access is denied by the statutory tenant. Law Centres all work on the basis that the landlord is an evil bastard and the tenant a downtrodden angel!
    3) Will I be able to get a substantial rent increase, closer to the property's market value? (It is currently rented at 400/m, while the local minimum is 1000/m)
    you will get an increase but not a very substantial one. If your works of improvement would increase the rental value disregarding the discount for scarcity by more than 15% you can file for a rent increase from the rent officer service (using form RR1) immediately upon the works being finished. Therefore unless in a listed building or conservation area,seek the freeholders consent to upgrade to double glazed windows (if the windows belong to the long lessee) and upgrade heating if lacking gas central heating. The rent capping provisions do not apply in such circumstances.

    Many thanks for anyone who can help!

    Chris
    no problem. Sometimes regulated tenants stand in the way of repairs being carried out because they are worried about the rent going up even though the state will usually help the tenant if unable to afford the new rent. When was the rent last re=registered? HMRC have a freely available directory of all registered rents in England and Wales on which you can find out if the rent has not been re=registered for some years. you can apply no earlier that 1 year 9 months after the last registration or determination became effective

    Comment


      #3
      Thanks Quarterday, now I feel much more assured that I won't be buying into load of penalties/damages because I cannot move the tenant out even when there's a serious structural problem.

      My other worry is that the flat will be passed on to someone else after the tenant's demise. He did mention that his brother lived in the same flat before so I presume it had been passed on once already. But how do I know that for sure? I suppose it must be recorded somewhere?

      Again, thanks for any advice!

      Chris

      Comment


        #4
        the tenancy cannot be succeeded to by another unless that person has resided with the current tenant for the two years prior to death. On a second succession the successor would I believe be an assured tenant not a regulated tenant under the rent acts 1977. Assured rents are higher than regulated rents, but are lower in practice than AST rents as lettings of assured tenancies tend to be somewhat unimproved as compared to ASTs. Furthermore with ASTs even unfurnished ones, the landlord typically supplies carpets and white goods, but not usually with ex rent act assured lettings

        Comment


          #5
          The purpose of buying this flat, as you can guess, is to achieve a large profit once the regulated tenant is no more. This could be 10 years or 20 years, but as long as current tenant is the last one, I still consider it a good investment.

          The concern is though, he can get, for example, a Thai bride in any moment, when he's old and needs looking after. If that happens there's just no light at the end of the tunnel.

          So I think the best way is to find out if there has already been one succession. Do you know if any office holds such records? Or do I have to find out myself by going through council records?

          Many thanks again!
          chris

          Comment


            #6
            RT does not have to move at all for building work,you wouldn't be able to get a injunction,as this has been thrown out of court in a few cases..

            But your could try and go for possession order,again highly unlikely,unless the building falling down,a danger to the life of the T and offer's,you the LL would have to prove this in court.

            Regulated tenancy,have right to buy under certain circumstances

            The right of 1st refusal-part 1 of landlord and tenants act 1987(as amended by housing act 1996)

            http://www.communities.gov.uk/docume...pdf/138295.pdf Page 43

            What happens if the landlord wants to sell the
            property?
            A landlord who wishes to sell a property containing
            flats must normally give the qualifying tenants the
            opportunity to buy it. If the landlord fails to comply
            with the first refusal procedure and sells to a third
            party, he or she commits a criminal offence and may
            be fined up to £5000. If the landlord sells his or her
            interest in this way, the purchaser must inform the
            tenants of his or her name and address, and serve a
            notice on them saying that the right of first refusal may
            apply. The tenants have the right to buy the property at
            the price the purchaser paid. If the purchaser fails to do
            either of these, he or she commits a criminal offence
            and may be fined up to £2500. The time limit for the
            tenant to exercise his or her right does not start until
            he or she has been notified by the purchaser.

            And Assured Tenancy after succession rights where used from RT,have a habit of been a low rent and can channelled be any rent increase via The rent assessment committee..

            What does it say when you put the full post code in below link of the flat/house you want to buy


            https://ebusiness.voa.gov.uk/err/Sea...isterForm.aspx

            click Find
            Thunderbirds are go

            Comment


              #7
              Hi 45002,

              I tried the Rent Registry and it gives me the last rent review details. It doesn't give me any previous records though, certainly not before the Rent Act...

              My concern is purely on succession now. If there hasn't been succession before, then there's nothing stopping the tenant getting a young wife in his last years, and the wife would then be entitled to live there forever. In that case the property is definitely not buying.

              On the other hand, if there's been a succession already, then even the wife continues to live there, at least I'll get a better rent and make the investment worthwhile.

              Can anyone help on how to find out previous successions?

              Thanks,
              Chris

              Comment


                #8
                Originally posted by lordbaldrick View Post
                Hi 45002,

                I tried the Rent Registry and it gives me the last rent review details. It doesn't give me any previous records though, certainly not before the Rent Act...

                My concern is purely on succession now. If there hasn't been succession before, then there's nothing stopping the tenant getting a young wife in his last years, and the wife would then be entitled to live there forever. In that case the property is definitely not buying.

                On the other hand, if there's been a succession already, then even the wife continues to live there, at least I'll get a better rent and make the investment worthwhile.

                Can anyone help on how to find out previous successions?

                Thanks,
                Chris
                Hello Chris

                On the Rent Registry,is that the name of the current tenant living there and what's the date of that entry ?
                Thunderbirds are go

                Comment


                  #9
                  The name is the current tenant, the date is May 2011, which was the latest rent review.

                  Since the content of this thread has become quite different from the subject, I just opened a new thread to discuss succession alone. Many thanks to all who gave me advice here!

                  Chris

                  Comment


                    #10
                    Originally posted by lordbaldrick View Post
                    The name is the current tenant, the date is May 2011, which was the latest rent review.

                    Since the content of this thread has become quite different from the subject, I just opened a new thread to discuss succession alone. Many thanks to all who gave me advice here!

                    Chris
                    Then there has been No right of succession used yet and this is still the original Regulated tenant living there.

                    If you buy the place and the RT dies,you wont be able to stop right of succession as quarterday posted early,if there someone living with the RT,The Wife ?
                    Thunderbirds are go

                    Comment


                      #11
                      The tenant lives alone. But I just want to make sure I'm not buying into a potential 50-year wait on peanut rents... Thanks for your help, it really gives great insight into the investing in properties with RT.

                      Chris

                      Comment


                        #12
                        1977 Rent act

                        Originally posted by lordbaldrick View Post
                        The tenant lives alone. But I just want to make sure I'm not buying into a potential 50-year wait on peanut rents... Thanks for your help, it really gives great insight into the investing in properties with RT.

                        Chris


                        You need sit down and speak with a solicitor,before buying.

                        1977 Rent act which covers that tenancy is a legal minefield
                        Thunderbirds are go

                        Comment


                          #13
                          You are most right! I'm glad I didn't blindly rush into buying it because of the low price. It is a minefield indeed. Without your expert knowledge offered on Landlordzone I could've become the latest victim...

                          Comment


                            #14
                            Originally posted by lordbaldrick View Post
                            I'm glad I didn't blindly rush into buying it because of the low price.
                            Also if you see a property at a low price but the tenant has an AST, these are usually sold at auction, check that the current landlord hasn't got the regulated/assured tenant to sign an AST as a way of trying to charge a higher rent. When the landlord finds out this won't work, they try to sell the property but still say they have an AST tenant. There are threads about this on the forum.

                            Comment


                              #15
                              I must take issue with member 45002. The County Court can and does order that a landlord house a regulated tenant elsewhere temporarily whilst repairs are undertaken if it would be impractical for the tenant to remain in his home during the period of such major works.

                              And, incidentally, the best way to find out if the current tenant is a successor is to compare his name with the original tenancy agreement, if indeedthere is one. Alternatively you can buy back Rent Registrations for years past to see in whose name the tenancy was vested. Sometimes but not always the Rent Officers used to mark the rent register to the effect that the tenant was a successor. Previously the law was that six months co-habitation was required to succeed, for quite a few years now it's been two years. Rent Act tenancies are increasingly rare, we are now down to approx 90,000 registrations from a peak of several million at one time. The law is complex and there are reasons why the market values these investments at considerably less than VP (vacant possession) value.

                              Comment

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