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nick..
28-08-2006, 14:43 PM
Hi

If someone has been in an Assured Tenancy agreement for some 30 years, are there any laws covering the sale of the property?

i.e. does the sitting tenant need to be given first refusal?

Are their laws covering the valuation of the property in the same way there are for increases in rent not going above inflation, for instance?

Thanks
Nick

MrShed
28-08-2006, 15:09 PM
I know this is a stupid question(because you have answered it in your post :p) but do you mean an assured tenant or a rent act tenant? Just seems like it would be in the timescale for rent act tenants. And is the property a single dwelling? Or part of flats etc?

nick..
28-08-2006, 15:14 PM
Hmm, I'm not 100% sure to be honest, but I can find out.

Its a semi-detached house

Nick

MrShed
28-08-2006, 15:21 PM
OK thanks. There is no right of first refusal for assured tenants, but there is for rent act tenants. However, as far as I can find, this is only for a property with multiple dwellings ie flats. Seems strange to me though, so could be wrong...

nick..
28-08-2006, 15:46 PM
Thanks very much

So the property is in theory worth less with sitting tenants on Rent Act agreements, but wouldn't necessarily sell for that reduced amount if sold to the tenant

Nick

MrShed
28-08-2006, 15:49 PM
Well, that is kind of true to an extent. The property is obviously worth more to the tenant than it would be to anyone else. But, the landlord cannot sell the property cheaper to someone else, as they have to give the first refusal to the tenant again if he is going to sell it cheaper. But in this specific case first refusal rules arent applicable anyway.

nick..
28-08-2006, 16:37 PM
So forgetting the first refusal rules as they don't apply, if you approached the owner to buy it, in this case some kind of trust I believe, would the asking price have to be what a 3rd party would pay to purchase it with sitting tenants? i.e. would a surveyor take this into consideration when valuing it, or would it just be the market value of the house with no sitting tenants

Thanks for your help,

Nick

MrShed
28-08-2006, 16:40 PM
That would depend entirely on the landlord. If he is looking to sell anyway, then a fair offer would be a small amount above the valuation of the property with sitting tenants. Therefore, the landlord would be getting more than he would otherwise, and the tenant would get the property for below market value.

nick..
28-08-2006, 16:49 PM
Cool thanks, the landlord isn't looking to sell, but the tenants are thinking of approaching to buy

The last time they did this, the landlord was happy to sell, but the tenants took it no further. That was 5-8 years or so ago

One more question, can the tenants (over 18) live-in children take over the tenancy and be afforded the same "Rent Act" assurances? would this only be in the event of the death of the tenants, for instance, or at any stage could they be named?

Thanks
Nick

MrShed
28-08-2006, 16:53 PM
I know little about rent act tenancies. But, I think that the tenancy can be taken over in the event of death IF it is a rent act tenancy, don't think you can if it is an assured tenancy. I think it is only in the case of death. But as I say, I'm no expert in this field, so someone else should be able to give a more definitive answer.

nick..
28-08-2006, 17:01 PM
Thanks very much for your help, if anyone else knows the definitive on taking over tenancy, that would be great

Cheers,
Nick