What qualifies as a sitting tenant?

A sitting tenant is a renter living in a property that their landlord decides to sell. If the tenant has an ongoing contract or agreement with their original landlord, then they retain the right to live in the property when it changes hands.

Does a sitting tenant have to pay rent?

In order to not invalidate their sitting tenant status, tenants must pay their rent on time. If the property does change hands, a sitting tenant is under no obligations and they do not have to sign a new contract if they don’t want to.

Can you sell a house with a sitting tenant?

You can sell your rental property with sitting tenants. However, it’s important to remember that your tenants have certain rights. You should always inform sitting tenants of your intention to sell before putting your property on the market and explain your reasons for doing so.

How does a sitting tenant affect property value?

If the property has a life or rent act tenancy, the valuation will be determined by: The age of the tenants and using national life expectancy graphs. Whether rent is paid or not. If no rent is paid, you will need to use a term and reversion calculation and roll up the notional interest based on the life expectancy.

Can you evict a sitting tenant?

Sitting tenants have an uninterrupted right of tenure under the Rent Act of 1977. Although it is harder to evict a sitting tenant, there are several ways this can be achieved. These can be found in Section 15 of the Rent Act 1977 and any attempt to do this has to go through the courts.

Is it better to sell a flat with a sitting tenant?

Largely due to the uncertain sales process, where 1 in 4 sales typically fall out of bed, many landlords choose to sell their property with the tenant in situ. There is no need to serve notice on the tenant, and there’s no need for the tenant to feel insecure about whether they are going to keep their home.

What is a sitting tenant in property law?

Sitting tenant. Jump to navigation Jump to search. A sitting tenant is a tenant already in occupation of premises, especially when there is a change of owner. Sitting tenants can result from a failure to evict an assured shorthold tenant following a change of owner or where there is a protected tenancy.

When did sitting tenants start in the UK?

These tenancies were created in the United Kingdom before 15 January 1989 under the Rent Act of 1977. Sitting tenants are also referred to as protected tenants, regulated tenants and rent act tenants. The landlord / lady is responsible for maintaining the exterior of the property and insurance for the property.

What happens if a landlord fails to evict a sitting tenant?

Sitting tenants can result from a failure to evict an assured shorthold tenant following a change of owner or where there is a protected tenancy. Where a landlord sells a property but fails to evict a tenant the new landlord is said to ‘step in the shoes’ of the old landlord and the terms of the tenancy continue.

What happens when a sitting tenant dies UK?

Upon the death of a sitting tenant, tenancy can pass to another family member. These tenancies were created in the United Kingdom before 15 January 1989 under the Rent Act of 1977. Sitting tenants are also referred to as protected tenants, regulated tenants and rent act tenants.