Here is a question to the blog clinic from Colin who is a landlord:
Some time ago, I bought the Headlease of a block of flats at an auction that included a Protected Tenancy.
Recently, I have been inundated with offers from Property companies seeking to buy this tenancy from me. I guess this is because it is in Camden where house prices are rising significantly.
1. Is there any kind of accepted formula for working out the going rate for selling such a property?
2. I have heard that legally I would have to offer the flat to the sitting tenant at the agreed rate prior to accepting the offer of a property company. Is this correct?
I am not really the best person to answer this as I have never really done much conveyancing work (other than when I was an articled clerk), so I am hoping that readers will be able to help me out. But here are my comments:
1. I am not aware of any formula and I think it is really a question of negotiation and seeing what they will accept.
Bear in mind that the tenant is fully entitled to refuse. Some tenants may just prefer to stay where they are. After all, they are never going to get another protected tenancy.
2. There is something in the back of my mind which rings a bell here, but I have just had a look at the act again and can’t see anything about it.
My understanding is that you don’t have to offer it to the tenant first. But I could be wrong. What does anyone else think?