Buying a tenanted property.

Other

Am in the process of buying a house with a tenant in. Vendor signed a 12 month AST with the present tenant on 10.08.10, until 11am on 10.08.11

However, because the property was put on the market, the vendor issued the tenant with a Sectiion 21(4(a) Notice Requiring Possession on 21st March 2011, stating that the vendor required possession 'after 9th June 2011'. My solicitor is warning me of exchanging contracts and completing with this situation.

I wouldn't mind the present tenant staying in until the original AST end-date (10.08.11), as that fits in perfectly with my intention of renting rooms out to students in September. However, as a Section 21 Notice was given, I don't think the original tenancy can be signed over to me (using an Addendum) and then can carry on from month to month.

Is there a straight-forward solution to this that legally binds the tenant to quit by that date (or a bit later, say end of August) and still protects me from losing possession? Or should I play safe and not exchange until after the tenant is out (9th June) and buy it then?

Any help would be appreciated.