What is a “sitting tenant”?
A ‘Sitting tenant’ is a person(s) who rents a property from a landlord that is intended for selling.
There are many reasons for a landlord wanting to sell a house with sitting tenants, they might be excellent tenants, elderly or have a good relationship with the landlord. Other times it could be a negative situation where rent is not being paid, or the tenants are not keeping the property to an agreeable standard.
Whilst a Landlord can evict tenants, this can be a lengthier and more stressful situation, especially if there is a financial aspect involved. A Landlord must give the minimum 2 month notice period before eviction proceedings.
Selling a tenanted property is very common and most landlords choose to sell this way.
The two main ways to sell a property that is tenanted:
To sell it subject to the tenancy: This works in the same way as a regular vacant property, the only difference is that the Tenancy Agreement will need to be transferred to the buyer’s solicitor before completion. The buyer such as Mark King would become the landlord.
To sell with vacant possession on completion: If the property is being sold as vacant the property must be vacated and emptied of belongings on the day of completion at the latest as per the agreed contract.
The advantages of selling with sitting tenants
There are many advantages of selling a property with sitting tenants, some of which are particularly useful to the new landlord. For example, there would be no issues with new upfront costs or vetting new tenants, no estate agents fees, it also reduces financial loss amongst others.
The main advantage is to the seller who may be in need of a quick cash sale and does not want the added hassle of dealing with tenants. Here at Mark King Properties, we provide a discreet service when we come to assess the property in order not to spook the tenants.
Once you have instructed us here at Mark King Properties to sell your home with sitting tenants, a solicitor will be appointed to transfer contracts, the buyer will need to be informed of the tenants status in terms of how they pay and if they are behind with payments. Mark King Properties can still buy your property, even if communications between you, the landlord and tenants have broken down.
Any deposits will also be transferred, once this is all complete the new landlord or buyer (that’s us) will notify the tenants of the change to comply with section 3 of the Landlord and Tenant Act 1985. Any new details eg contracts and contact information will be passed on also. By this stage, you will have sold your property and the rental agreement is no longer your responsibility or your concern.
Are you looking to sell a house with sitting tenants?
If you are planning on selling your property and have tenants that are not planning on moving out, there is no need to wait for fo them to leave. If you need to sell the property with the tenants in, we can buy your property with no hassle to you or your tenants.
Selling a house with tenants can be a challenge if you are having difficulty with the tenants, or the rental market is slow you don’t need to worry about the long term effect of this as there is an easy way to sell your home. We are here to provide an alternative to selling with tenants in situ.