New regulations for landlords banning "no fault evictions", what happens if the house is sold ?

[Justin Smith]

In other threads we have touched on the shortage of rented property, partly caused by the fact being a landlord is just so much hassle these days, loads of regulations and the tenants have most of the rights. Obviously I think the new "Renters reform bill" will just exacerbate the situation, but I have a specific question for the esteemed members of this forum.

The potential situation regarding repossession if the landlord is selling the property appears to be unclear. This is very much concerning a close friend of mine who is due to inherit her Mum's house but it has a tenant in it on a one year lease which expires in October. She is desperate to get out of the rental sector and sell the house but is sick with worry she will not be able to.
Can anyone reassure her ?

 

[Newchodge]

The purchaser purchases the property with a sitting tenant. That seriously reduces the value

 

[Justin Smith]

The purchaser purchases the property with a sitting tenant. That seriously reduces the value

>>That seriously reduces the value<<

I would agree. It begs the question who would want to be a landlord, I am talking people with just one or two houses here, esp people like my friend who was renting out her Mum's house to help pay the care home fees. I cannot see many people opting for that once all of this comes in....

This BBC News Article is unclear in its meaning :

Under the reforms, landlords will only be able to evict tenants in certain circumstances, including when they wish to sell the property or when they or a close family member want to move in, after six months.

My friend really is worried about all this because if the will does not get sorted out by the end of the tenants one year tenancy (in October) she may not be able to get possession then as, I think I am right in saying, nobody actually owns the house at present ?
Do we know when all of this is coming in ? I have reassured her that these kind of laws can sometimes take ages to come in but she is unconvinced. She is kicking herself black and blue she didn't sell it last October.....

 

[Newchodge]

If nobody actually owns the house at present, nobody can sell it.

 

[Justin Smith]

If nobody actually owns the house at present, nobody can sell it.

That's what she is worried about, come October when the yearly tenancy expires.
Surely even if they do bring this in by then they cannot over ride existing yearly tenancy contracts ?
But if technically the house is not owned by anyone, how can the tenant sign for a longer tenancy or, on the other hand, the tenant be required to move out at the end of the year's tenancy ?

 

[MBE2017]

Whoever the new owner is, and IF the new laws are in place, you would issue a section 8 notice, normally 60 days but depends on the actual law and tenancy agreement.

FWIW, the new laws will not be as bad as everyone is expecting. The tenant will have to move out if you choose to sell, it’s just the notice period involved. That said, better to have a happy tenant in the meantime, you could offer them first refusal on the sale, and or offer to help with removal expenses in exchange for allowing viewings and a good attitude.

 

[Waddy]

It would be a section 21 possession notice you would need to give the tenant, unless there are rent arrears, damage to the property or breach of contract, then it would be a section 8.

Legally the executor of the will is responsible for collecting the rent for the estate and fulfilling any contractual obligations while the will is in probate, they are effectively the landlord.

Once the will has been executed, the beneficiary becomes the landlord. The contract remains valid throughout, it's just the landlord that effectively changes from deceased to executor to beneficiary. The executor can issue a section 21/8 if still in probate or the beneficiary can issue the section 21/8 after execution.

The section 21 has to give at least two months notice. This can be issued any time with the move out date as the last day of the fixed contract. The sooner the better so the tenant has as much time as possible to prepare and find a new home.

Before you issue the section 21 make sure all the gas, electric and EPC certificates are up to date and the tenant has copies of them. Make sure the deposit is protected and the tenant has been given the government handbook on how to rent. These are all necessary for the section 21 to be valid.

Hopefully all goes to plan and the tenant moves out at the end of their fixed term. They don't have to though, only a court can force them to move out, that may take quite a few months depending on the area and how backlogged the courts are.

 

[Newchodge]

I get the impression that he owner is still alive.

is due to inherit her Mum's house

 

[Waddy]

I get the impression that he owner is still alive.

Maybe, or the estate is still in probate and the will hasn't been executed yet, even a quick probate will take about 6 months, if it's more complex it can take a year or two.

If it's just a parent leaving everything to their child/children, then it's going to be nearer the 6 month mark.

Regardless, the OP's friend needs to work out who is responsible for managing the property and trying to remove the tenant when necessary.

If no executor is named in the will then the OP's friend and any siblings are likely to be the executors by default.

 

[Justin Smith]

Maybe, or the estate is still in probate and the will hasn't been executed yet, even a quick probate will take about 6 months, if it's more complex it can take a year or two.

If it's just a parent leaving everything to their child/children, then it's going to be nearer the 6 month mark.

Regardless, the OP's friend needs to work out who is responsible for managing the property and trying to remove the tenant when necessary.

If no executor is named in the will then the OP's friend and any siblings are likely to be the executors by default.

It's been "managed" by Bridgefords estate agency.
The estate is in probate at the moment.
Hopefully it will not still be in probate when the tenants one year tenancy expires.

 

[Justin Smith]

Hopefully all goes to plan and the tenant moves out at the end of their fixed term. They don't have to though, only a court can force them to move out, that may take quite a few months depending on the area and how backlogged the courts are.

Not sure what you mean by this. If the tenancy is for a year why would they not have to leave at the end of it ?

 

[DontAsk]

Not sure what you mean by this. If the tenancy is for a year why would they not have to leave at the end of it ?

Deleted

 

[simon field]

Not sure what you mean by this. If the tenancy is for a year why would they not have to leave at the end of it ?

On paper they do. But if they decide to just stay put, you need a court order to get them physically evicted.

I believe.

 

[MBE2017]

Even if the tenant decides they wish to stay after the years tenancy, the landlord simply gives two months notice IF they wish to sell. In addition to this two months notice, the landlord has to have protected any deposit in a separate deposit protection scheme account, and the landlord has to have issued an EPC, GAS certificate plus a copy of a how to rent, a checklist for renting in England.

In other words, ensure you have done everything correctly, or you will fail in your attempts if your tenant has even the slightest knowledge of the law.

 

[Waddy]

It's been "managed" by Bridgefords estate agency.
The estate is in probate at the moment.
Hopefully it will not still be in probate when the tenants one year tenancy expires.

Hopefully this means that all the paperwork is up to date. The executor can ask the estate agent to issue the section 21 giving two months notice or until the end of the fixed term, whichever is longer.

Not sure what you mean by this. If the tenancy is for a year why would they not have to leave at the end of it ?

The tenancy most likely isn't for a year, it is almost definitely going to be an assured shorthold tenancy, the fixed term portion is for a year, after that it becomes a rolling contract. The only person who can enforce the contract is a judge, hopefully it's not necessary and everything goes smoothly.

I was just pointing out that you want to make sure everything is done properly, so if the tenant decides to make it difficult you can get possession of the property back as quickly as possible.

 

[ethical PR]

>>That seriously reduces the value<<

I would agree. It begs the question who would want to be a landlord, I am talking people with just one or two houses here, esp people like my friend who was renting out her Mum's house to help pay the care home fees. I cannot see many people opting for that once all of this comes in....

This BBC News Article is unclear in its meaning :

Under the reforms, landlords will only be able to evict tenants in certain circumstances, including when they wish to sell the property or when they or a close family member want to move in, after six months.

My friend really is worried about all this because if the will does not get sorted out by the end of the tenants one year tenancy (in October) she may not be able to get possession then as, I think I am right in saying, nobody actually owns the house at present ?
Do we know when all of this is coming in ? I have reassured her that these kind of laws can sometimes take ages to come in but she is unconvinced. She is kicking herself black and blue she didn't sell it last October.....

I'm a landlord the new legislation won't change much for me and introduces new protections for landlords