Should this letter from management company of residential block be of concern?

Hi All veteran landlords :slight_smile:

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.

  1. Should buyer be alarmed by any of the contents of this letter?

  2. 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?

  3. does this letter appear to you to be targeted to every* flat in the block or only this flat in particular?

Thank you🙏

This would be sent when they know a flat is due to be sold on to a new buyer

thanks Colin3. Should buyer be concerned about anything due to this letter? or is it safe to proceed? thanks

You could ask them first of all, have they any existing problems regarding that block of flats?

thanks again Colin-will ask buyer to do so

@chawal2

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

Good luck

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@David240 there is tenant in situ in property who is excellent tenant according to seller’s agent.

I am not able to understand your statement “Unclear if cause if within potential purchase or elsewhere…”

thank you v much for your detailed and helpful important advice. will ask buyer to action asap

Shalini 1 so being sold WITH a tenant already in?

yes Colin. do u want to advise anything due to this information? thank you

You will need to check about this tenant then. With the management company. Was this tenant there when a viewing was done?

@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

Good luck

ok thanks Colin will do. yes this tenant is living in the property for 5 years and has been good as per lettings agent of seller.

ok thanks once again for taking time and effort to help us :folded_hands:

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. !

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thanks Colin for your valuable advice and time :folded_hands: . will surely ask buyer to try to visit property again

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@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)

Good luck

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.

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thanks David. Buyer has seen AST and payslips of tenant and deposit PI was served etc.

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.

Hi @chawal2

Buyer also needs evidence epc, electrical and gas safety certificate how to rent were all served correctly when ast was set up

Best

David