• Sitting Tenants In Annexe

    By Guest on 01st Dec 2014

    We are in the process of purchasing a property with an annexe. The main house will have vacant possession, but the annexe will have sitting tenants. We have not yet exchanged but expect to do so shortly with completion taking place in later January. The tenants are on a AST which runs until April 2015. We are happy for the tenants to stay in the annexe but wondered what needs to happen with the tenancy agreement as it is between the sellers and tenants, but we will become the owners of the property part way through.

  • 2 Answers

    By Guest on 13/01/2015

    First things first, are you buying with a mortgage? If so you may have a problem. If it is a residential mortgage then it will be a breach of the terms to allow any part of the property to be let for even a day and if it is a buy to let mortgage your lender will probably require the whole of the property to be let under a single tenancy. Putting this aside, the seller will need to send a Rent Authority Letter to the tenants on completion instructing the tenants to pay rent to you in future. You should be provided with a copy. If completion takes place part way through the rent month the seller should make an apportionment in your favour to cover the rent he has received that relates to a period from the completion date to the date the rent is next due to be paid. You will need to serve (or ask the seller to serve) a notice to quit on the tenants at least 2 months before the expiry date of the tenancy which must expire no earlier than the tenancy end date.

  • By Guest on 13/01/2015

    First things first, are you buying with a mortgage? If so you may have a problem. If it is a residential mortgage then it will be a breach of the terms to allow any part of the property to be let for even a day and if it is a buy to let mortgage your lender will probably require the whole of the property to be let under a single tenancy. Putting this aside, the seller will need to send a Rent Authority Letter to the tenants on completion instructing the tenants to pay rent to you in future. You should be provided with a copy. If completion takes place part way through the rent month the seller should make an apportionment in your favour to cover the rent he has received that relates to a period from the completion date to the date the rent is next due to be paid. You will need to serve (or ask the seller to serve) a notice to quit on the tenants at least 2 months before the expiry date of the tenancy which must expire no earlier than the tenancy end date.

  • Post Your Answer


  • Do you want to be informed of further comments / replies? Yes No

Ask a Question

Search