Here is a question to the blog clinic from Ruth who is a tenant:
I rent privately, have just renewed a 12 month contract after my initial 6 month tenancy agreement.
What happens if my landlord decides to sell the property? Tenancy agreement is through a letting agency.
Answer
Technically it will not affect you. The purchaser will take the property subject to your tenancy. It is often described as the new landlord ‘stepping into the shoes’ of the old landlord.
So you would have a new landlord but retain all your rights.
In particular, the fact that your landlord wants to sell does not mean he is entitled to ask you to leave. You can only be evicted by your landlord (the old or the new) getting a court order for possession.
So if your landlord wants to sell he has a choice:
- Get an order for possession – which may take some time, as he will not be able to evict you under section 21 until after the end of your 12 month fixed term, or
- Sell the property as an ‘investment property’ subject to your tenancy
The only other option is to get you to move out voluntarily. But if he pressurises you then this will be harassment which is a criminal offence and will also entitle you to claim compensation.
The term ‘sitting tenant’ is often used to describe tenants who are entitled to stay in a property when their landlord wants them to go.
However note that in your case your landlord can evict you eventually, it will just take him a long time as you have a 12 month fixed term tenancy. (Assuming he is not entitled to evict you for rent arrears).
The fact that the landlord is using a letting agent to manage his property will not affect any of this.
I once had a case where the landlord was selling but the tenant couldnt afford to move. The landlord was happy to pay her a few grand to vacate so the sale would go through but she didnt have the money either.
I arranged through the conveyancing solicitor that upon transfer of the sale funds on completion day the agreed sum would automatically go into the tenant’s account from the purchase amount.
this worked a treat and both were happy. A rare win-win for landlord and tenant
@Ben,as a buyer,I would not be happy to exchange contract until I have SEEN that the tenant has left, unless I was buying with a tenant in place.
So the tenant getting the money on the day of completion would not work.
@Ben and @Ian
This is not as unusual as suggested. I’ve negotiated three such agreements this week sent over to litigation from our conveyancing bods. Naturally, all under deeds of surrender and backed up with section 21s *just in case*…