I've sold properties before, but they have always been with vacant possession. This time is different because it will have an in-situ Tenant.
I'd appreciate advice/tips, especially about any particular statutory/legal Landlord requirements, during a sale of property with an in-situ Tenant.
Before pressing the start button with the Conveyancer, I'm planning to discuss the matter with the Tenant, but before that, I'd greatly appreciate advice from the forum.
I've received a good offer for one of my rental properties and I reckon I'll accept it. The new prospective landlord (The Buyer) wants to buy properties with good Tenants in-situ. My current Tenant has lived in the property with spouse and two small children for over two years, pays the rent on time and takes good care of the property. The 12 month initial fixed term AST was re-signed for a new 12 month fixed term in March 2021 and has now rolled over into a Contractual Periodic Tenancy, based on the clause included in the NRLA AST.
In April, I agreed a rent increase, by discussion with the Tenant and I've properly served the formal Rent Increase notification on the Tenant. The new increased rent should start to be paid at the end of May (2022). This new rent has been taken into account, in the valuation agreed by The Buyer. Just to be clear, I'm happy with the offer and the valuation.
My Conveyancer now knows that this sale will include an in-situ Tenant and they've quoted an extra £75 on the Conveyancing fees (just for info). The Conveyancer is not a Landlord, therefore some of the things we may discuss here in the forum, will be outside of the scope of a property Conveyance.
I'm nearing retirement and this sale is part of my exit plan. In my opinion, the timing for this sale is good. It will allow me to pay off the rental property mortgage and put the remainder into another investment (separate discussion).
In conclusion, I believe that the Tenant wants to stay, the new Landlord wants them to stay and I want them both to continue (when I've sold up) with a long and happy Tenancy.
What should I be aware of? (that I might not have considered).
Are there any statutory or legal requirements?
Best wishes
