Sometimes you may want to sell the property that you are currently letting. This can be complicated when you have tenants that have not reached the end of their tenancy agreement yet. As a landlord, you have specific responsibilities and legal obligations you must follow, and this guide will highlight how to navigate the selling process.
How do you sell your property when you have sitting tenants?
It may be more complicated to sell your buy-to-let property if tenants are still occupying the premises, however, it is still possible. It is important to note that if you want to sell your property, you are not entitled to evict the tenants.
You may only sell your property with sitting tenants once you have provided the tenants with a notice of end of tenancy. You can do this by using section 21 of the Housing Act 1988 which requires at least 2 months’ notice in writing or section 8 of the Housing Act 1988. Section 8 gives reasons for wanting possession such as:
- You would like to move back into the property yourself.
- The tenants have used the property for illegal reasons.
- The tenants are behind on payments.
- There is a ‘break clause’ in the contract.
It is extremely important that you seek advice before trying to give notice to tenants regarding the removal from your property.
How should you conduct viewings when the tenants still occupy the property?
It is important to note that you do not automatically have the right to show potential tenants or buyers around the property. You are only to do this if it is agreed within the tenancy agreement, and you give the existing tenants at least 24 hours’ notice in writing. If you do not have this in place, you will need to ask for the tenant’s permission.
What happens if the purchaser becomes the new landlord of the tenants?
If the property has been sold with sitting tenants, the purchaser now becomes the new landlord of the property. The tenancy agreement is still valid however, the landlord’s name will need to be changed. In this case, it is useful to ensure that the new tenancy agreement is agreed and signed as soon as possible.
Occasionally, the tenant may decide to refuse to sign anything. They have the right to do this and, in this scenario, the new landlord should communicate in writing with the tenants about the change in landlords and provide new payment details for the rent.
Boxall Brown & Jones can help
At all stages, it is vital that you seek advice and professional help from your letting agents to help provide the correct guidance and support for you.
If you require any assistance, please contact Boxall Brown & Jones on:
Telephone: 01332 384438
Email: [email protected]