Landlords seeking to sell a property with current tenants in place may worry that they cannot proceed while the tenants are still signed into a lease, but this isn’t the case. When selling a tenanted property UK landlords have a number of options. In this article, we cover everything you need to know about selling a tenanted property.
Can I Sell My Property With Tenants Still In Situ
Yes, a landlord can sell a tenanted property; however, a decision will need to be made between:
Selling The Property With An Active Tenancy
The vendor will need to be in agreement to take on the tenants in situ, on their current terms, in order to transfer the tenancy. After completion, the new property owner will become the landlord, taking the associated rent from the buy-to-let property. There are advantages of selling a tenanted property as the incoming landlord will already have a rental income, but this option can also add complications, such as obtaining the condition of the property and organising viewings around the availability of the current tenants.
Selling The Property After Termination Of The Active Tenancy
This option requires the current tenancy agreement to either come to the end of its agreed term or the landlord would need to terminate the tenancy by evicting the tenants. Legally repossessing the property by evicting the current tenants needs to be done carefully, abiding by the specific rules by which a tenancy may be terminated, and this will take time. This second option would involve the completion of the sale taking place once the property is vacant.
Considerations For Landlords
Depending on which option is preferable, the landlord would need to make preparations before a sale can be arranged. For example, if the current landlord is happy to sell a tenanted property, the legal tenancy documents will need to be in order before the sale transaction completes so that the new landlord is content with the offering. Whereas if the landlord chooses to evict the tenants, legal advice should be sought to complete the eviction correctly.
No matter which option is chosen, a landlord must protect the rights of his or her tenants in order to comply with legislation. Bowsers Solicitors are on hand with all the advice and guidance landlords need at each stage of this process. Get in touch with our expert team of solicitors today to discuss your options.
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