Buyer is about to finalise purchase of a flat and buyer’s solicitor has been sent this letter from seller’s solicitor sent by management company of the residential block of this flat.
Should buyer be alarmed by any of the contents of this letter?
how would owner of this flat ensure the landlord insurance is still valid-if* smoker or cannabis user was resident of some other flat in the block?
does this letter appear to you to be targeted to every* flat in the block or only this flat in particular?
Unclear if cause if within potential purchase or elsewhere and if you can speak to neighbours
Worth arranging with agent to visit potential purchase flat again
If flat is supposed to be vacant and being sold as vacant possession and locks appear secure may all be fine - if a tenant in situ and buyer is taking over tenancy then may be a breach of tenancy. If squatters also a problem obv.
Landlord insurance won’t cover communal areas that is for the block owner/freeholder and mgt co through the building insurance
Worth asking when the complaints were made and by how many neighbours that share a communal area with potential purchase
Worth checking what FRA current owner has done (if a LL) and what FRA by mgt Co and getting copies
Worth considering whether will affect potential rental value or deter potential tenants
@chawal2 think that was auto correct fail, I meant
“Unclear from letter if cause of smoke smell is within potential purchase or elsewhere; if you can, speak to neighbours of purchase flat”
I wouldn’t believe a single word from sellers agent, anyway tenant might be excellent re paying on time but if disturbing neighbours with heavy smoke may be much worse inside flat itself and will be breaching tenancy clauses about not being anti social/disturbing neighbours. Unless you can be sure it’s not the prospective tenant causing the problem I’d walk away.
The leasehold for the property also likely forbids antisocial behaviour so buyer would be liable if caused by tenant and doesn’t get stopped. But not as easy to evict people for smoking as it might sound esp with end of s21 from May
Never buy a place without meeting the existing tenant and see if they smell of heavy drinking or weed. Only can tell tho if you know what weed smells like . I do not. !
@chawal2 you /your solicitor also need to check everything about the tenancy agreement and how it was set up - if it wasn’t done properly ive been told it may be impossible to evict even under current legislation. Also check ok with mortgage provider - some will only offer when vacant possession
There are also specific steps current LL needs to take to tell tenant you will be new LL and you have to do after taking over tenancy to provide them with your details and to transfer deposit to be in a scheme but held for tenant but linked to you not old LL. You should probably get a new inventory done as well or check if existing one is up to date, and understand from current LL if any deduction due from deposit for damage etc (if so the evidence)
The buyer needs to do full due diligence on this tenancy as well as the property. People often only sell with a tenant in situ if they’ve made a mistake and can’t get rid of them.
thanks David. Buyer has seen the AST, deposit protection certificate and served PI etc and payslips. following two notices - section 3 and section-48 - as obtained from google and copilot - these will be served by buyer promptly after purchase completion: Section 3 Notice
Legal Basis: Landlord and Tenant Act 1985
Purpose: To inform the tenant of the change in landlord and provide the new landlord’s actual address (not just a service address).
Deadline:
You must serve this notice no later than:
The next rent due date, or
Within two months of the property transfer — whichever is later.
Penalty for Non-Compliance:
Up to £2,500 fine.
Both the old and new landlords can be held jointly liable for tenancy breaches if this notice is not served.
Section 48 Notice
Legal Basis: Landlord and Tenant Act 1987
Purpose: To provide the tenant with an address in England or Wales where they can serve notices (e.g. for repairs, termination).
Deadline:
There’s no fixed statutory deadline, but it must be served before rent is lawfully due.
If not served, rent is not legally payable until it is.
Practical Tip:
This address can be your own or your managing agent’s.
It’s often served at the same time as the Section 3 notice.