Generally tenancies which started before 15th January 1989, come under the Rent Act 1977. These defined as Regulated Tenancies, whether they are furnished or unfurnished. After the 1989 Act tenancies are either Assured Short-hold tenancies or Assured. Regulated tenancies post this act happen in limited circumstances. Regulated tenants are different from sitting tenants.
Regulated tenants have some very stringent rights:
- A landlord cannot evict a tenant unless a possession order is sought from the courts (Even then it can happen under certain situations).
- When the tenant dies and a spouse or family member is living with thme at the time, the protected tenancy is inherited by the family member or spouse
- A tenant or landlord can apply to the valuations office or council for a fair rent to be registered. The rent is reviewed periodically and the landlord cannot charge more than the rent registered.
- The tenant can apply for housing benefit.
- Landlords are responsible for structural repairs, it may be possible to apply for a local authority grant for some repairs.
- Eco grants for heating and insulation may be available for tenants on housing benefits.
Investors are attracted to these properties as they are usually 50% of market value and rental yeilds work due to the initial capital investment.
Selling with Regulated Tenancies and Tenants
Investors usually fall foul of not recognising a regulated or protected tenancy and there are serveral things to look out for
Properties are marketed at low prices. This is a major alert as to whether the property has a protected tenancy or some other property issue. The issue of a regulated tenancy can quite easy resolved by searching the ‘fair rent’ register. This come into effect 2003. It is not comprehensive but a great start. Invariably a solicitor will identify wherether is a problem and identify early on in the sales process.
The Property Buyers Buy Regulated Tenancies and Tenants
We are a specialist property buyer and act for two major pension funds. After our desktop property valuation, we will make an offer, exchange with non- refundable monies, and complete within your time frame.
Our process is simple and transparent, ensuring you know what is happening at every step of the way.