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billmaryon
21-02-2008, 15:26 PM
Hello, bit of a long shot this but here's hoping...I bought a bedsit property in 1984 with 3 sitting tenants. 2 went early on but the third is still there. He is middle aged, single and in work. He has a bedsit and shares bathrooms. I improved his position in 1991 when all rooms got kitchens. The property is now a licensed HMO. He is the only tenant that smokes and I 'd rather he didn't.
He thinks he is stuck there because there is no compensation I could pay him that would get him on the housing ladder now. He's the same age as me! I tried to buy him out in 1991 but we couldn't agree and since then I've accepted the position and taken the rent (about 20% below market value, but never been registered).
I've decided that perhaps I should perhaps reopen negotiations with him now but have first tried to read the 1977 Rent Act and all those grounds for possession. I got excited when I saw LL could move in on retirement or move his son in, but these appear to be out of date circumstances.
So, in short, anyone know of any legislative loopholes that I could reasonably use to get possession or are there none?
Thanks in advance.

Grange
21-02-2008, 15:43 PM
but never been registered

You have increased the rent properly by mutual agreement under s51 of the Rent Act, haven't you. Otherwise you might be in for a nasty shock and owe him money.

You can only move in on retirement if you lived there previously or acquired it otherwise than by means of purchase. And you are likely to pay compensation. And it only works if less hardship is caused by evicting him than by you being homeless - which I presume you aren't.

If you cannot price him out, you have to buy him out. Alternatively, if the house would be worth a whole load more as a house than as three bedsits then what about buying a studio flat nearby and moving him in there (obviously you need to get his agreement first). Then you have vacant possession of the house at least.

billmaryon
21-02-2008, 16:07 PM
Hi, thanks. Just read S.51, ummm, not really. We had a signed agreement to increase the rent by inflation in 1991 which didn't have those disclaimers/notices and when increasing since then I have just written him a letter and he has adjusted his standing order.

billmaryon
21-02-2008, 16:09 PM
Oh and, sorry, it's 9 bedsits altogether. Potential to be 4/5 flats but I reckon I can increase monthly income from bedsits by £1,000 a month by refurbishing and this line of thought with my protected tenant is the first part of that strategy!

Grange
21-02-2008, 16:10 PM
Oh bugger. He can reclaim from you the difference between the actual rent paid and the contracted rent - i.e. in the year when he moved in. Fortunately he can only reclaim the past two years.

Next time increase the rent in accordance with the s51 agreement. Pro forma available from WH Smith or similar. And hope he doesn't find this out in the interim.

Grange
21-02-2008, 16:12 PM
In which case, consider offering him a small flat - self contained. Worst case is that you have to offer him the same rent as he would pay on his current bedsit room; if he is reasonable then he might accept a higher rent.

billmaryon
21-02-2008, 16:18 PM
Rent increases - thanks for that. 2 years, could have been worse. But I will do it properly next time.
Alternative accommodation - My thinking has been that a studio flat costs £100k but his tenure reduces the HMO's value by ? £20-50k? , so i have less useless capital tied up in him where he is.
I appreciate your help.

billmaryon
18-08-2008, 09:58 AM
Hello again
I have tried unsuccessfully to find the form to increase the rent under the regulated (but not rent registered) tenancy - anyone any ideas where I can get one please?