Tenant in Situ Transfer New AST


I have consulted NRLA, but still confused at some point and was hoping any experienced landlord can help me on this one.

So I called up NRLA and they were saying that if I want a to start a New AST for a tenant in situ with a new increase rent, then first of all before completion i need to check all documents and evidence are up to date. such as checked deposit info, license to rent, proof of agent sent Gas, EPC, How to rent guide to signing party, and proof of e-mail address belongs to the signing party ( the tenant). This first step is to ensure when transferred old AST upon completion you have the right to give section 21.

Then NRLA said I can only sign a new AST after the property is completed. This is where i am slightly confused.

So I want to have a higher rent on day 1, so in my mind it would be before completion signing a new contract let’s say on Open rent for it to be in effect upon completion, but NRLA saying it has to be after completion to sign it. which one is right?

You cant give a tenancy for a property you dont own (or are taking a big risk if you do). As the NRLA says you need to wait until it completes to sort out the change to new tenancy. You could i suppose ask thecexisting owner to serve a rent increase notice but doubtvthey would want to and surely a couple of months isn’t going to make much difference.

You’ll need to get used to fact landlords dont always get what they want…

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but can we do it this way. give the tenant a draft AST saying on a specific date ( completion date) before the property completes for tenant to sign earlier than completion date and I only sign and accept on completion?

Because the tenant agrees verbally already and most likely to go ahead, also base on that logic you can’t sign a contract when it completes so if I only sign it until completion it is technically same as having the AST on that date?

Firstly, I would suggest that buying a tenanted flat is a big risk if your relatively inexperienced. If you really want to go ahead, then do the required due diligence. Have a look at this website as a start: 26 questions to ask when buying a property with tenants in situ (propertytribes.com). The points NRLA are raising are amongst this list and are questions you and your solicitor should be asking BEFORE you exchange contracts.

Once you complete the purchase, you or your solicitor must serve a s48/s3 notice for change of landlord. Until this is served, the tenant is not legally obliged to pay you any rent.

You can’t compel the tenant to sign a new tenancy agreement at all, in fact tenants often refuse as they don’t know what you’ll be like as a landlord and want to hedge their bets.
However, you don’t need a new tenancy agreement to increase the rent. Once you are the landlord, you can use a s13 notice or the provisions of any rent review clause in the contract to increase the rent, provided it hasn’t been increased for at least 12 months prior to this.

There is a lot of legal homework for any would be landlord. Even more with buying a tenanted property. Without this you could easily make what seems like a simple error, but costs you thousands of pounds.