Sitting Tenant - New Tenancy creation

Landlord Discussion Legal
1

We are in the process of buying a property with a sitting tenant. This was reflected in the offer we made. We know the tenant and are happy for them to stay.
It looks like a rolling monthly Tenancy agreement is in place.
Looking for advice on the following …
Can we just create a new agreement (via OpenRent) and issue to the tenant following purchase ?
The current rental amount is low (only one recent change in last 10 years) and we’d like to increase it to market value which I think the tenant is expecting and unlikely to challenge - can we increase at same time as new tenancy ?

Many Thanks

2

When you say “sitting tenant”, is the tenabt a “protected tenant because if so, you will not be able to raise rent without their agreement.

3

Not sure what a ‘protected’ tenant is?

4

What kind of contract does he have? How long has he lived there from what date? Search on internet. This should have been checked before purchasing. Hopefully he’s not.

5

'Protected ’ tenancies are rare but basically are legacy tenancies who may have the right to live sonewhere until they die for a low rent . Any decent Solicitor would pick this up when doing the conveyancing so its unlikey its one of those .
Its otherwise simple, if the sitting tenant has a tenancy agreement in place you have to honour that then after that ends you can do whatever you like eg increase the rent or serve a section21 to get them out or keep the rent as it is .

6

Thanks Mike, Tenant is not “protected” and existing agreement appears to be rolling monthly, so all sounds good for new agreement once purchased.

7

You need to do proper due diligence if you are buying a tenanted property and frankly its worrying that you dont know about rent act tenancies.

Google vesta property 10 questions to ask when buying a tenanted property and
propertytribes 26 questions to ask when buying a property with tenants in situ

1 Like
8

Not sure why you’re worried or assume my lack of knowledge, we know the property and the tenant personally which influenced our decision to purchase.
My original question was regarding creation of a new agreement via OpenRent

9

You asked what a protected tenancy was.

10

One thing I would check is that you have access to the tenant’s original deposit, which they will want back if they move out. I speak from bitter experience!

11

Thanks Mark, that’s helpful, looking to get it transferred.

12

You should have a competent solicitor doing the conveyancing not the sweatshops. Your solicitor will advise you properly

13

I need a two bedroom apartment within east kilbride. Ready to pay a deposit and 3 months upfront. I have not rented before. Was hoping to wait till June but the flat where is was subletted a room is not convenient.

14

if you can get a new tenancy but there is no need to do so. If you want to get rid of the tenant though for any reason using a S21 all the paperwork needs to be in order including for example a valid GSC at the start of the tenancy (of which you had no involvement).