I’ve had an offer accepted on a property with a tenant in situ. I would like to consider keeping the tenant as the property is well looked after, and the tenant wants to stay. The agent selling the property is also the letting agent and he has advised that the tenant is on a rolling contract (I assume he means a periodic tenancy - I am trying to find out). The agent has added a special condition to the Memorandum of Sale stating that if I decide to keep the tenant that I will need to continue to pay tenancy renewal fees. I would like to manage the property myself and not use an agency. Does the letting agent have a leg to stand on regarding charging me tenancy renewal fees?
You need to ask your solicitor to insist that this condition can be removed from the memorandum of sale. You have no contract with the letting agent and should not have to agree to them managing the property.
Now your work really begins. You have a lot of checking to do as you should never buy a tenanted property without proper due diligence. Have a look at these two links:
I am also buying a property with a tenant and like you, wish to self manage. I was also concerned if I had any obligation to the agent. I thought that on completion I would need to issue the tenant with a new tenancy agreement for the remainder of the initial term, with my name as the new landlord. I was told that the original tenancy agreement automatically transfers to me as well as the deposit lodged with the DPS as the new owner and there was no need to issue a new tenancy with my name on it. Also the ongoing management of the property ends.
My offer was accepted early June, there is no chain involved and we are in early November and I still don’t have a date for completion. I think the agents are intentionally dragging it out just to benefit from the ongoing rent/commission. My mortgage offer expires at the end of December so I think it is likely I will complete just before.
I just wondered if you or anyone else has a similar experience.
The current tenancy does continue under a new owner. You would effectively step into the shoes of the former landlord. You must, however, serve a s3/s48 notice to confirm to the tenant that you are the new landlord. This is a legal requirement.
Have you checked out the links I posted above?
Are you an experienced landlord?
If you’re a newbie landlord, you should now be devoting yourself to learning the trade. There are approximately 150 different laws affecting the letting of property and if you make a mistake with any one of them, the consequences can be severe. These include penalties of £30k, unlimited fines and even prison sentences for some. Even the lesser ones can cost you thousands of pounds.
I would suggest you do some training and then continue learning by reading. The NRLA foundation course is a good start.