Sitting Tenants – A Dwindling Problem for Landlords
Sitting Tenant properties are in decline as tenants mature. Selling a property with a regulated (sitting) tenant still remains a problem.
In the UK, there are 4.1 million are in rental accommodation, a very small percentage of these tenants are sitting tenant. A definition of a ‘Sitting Tenant’ is an individual who has a legal right to remain in a property for the rest of their lives. There is also the issue of succession and the tenancy can be ‘passed’ on to a family member. These tenancies are also known as regulated or protected. Typically this type of tenancy happened before the 15th January 1989, and come under the Rent Act of 1977.
Due to the length of time, ‘Sitting Tenanted’ properties are becoming rarer. On the death of a tenant the property reverts back to the owner.
Landlords of ‘Protected Tenancies’, have very little rights to their properties, and in many cases there are no tenancy or leasing contracts. The landlord cannot evict, nor enter the property without just cause. The structural maintenance of the property is usually the duty and care of the landlord. Rents cannot be put excessively as a tenant will refuse to pay, adding even more burden to the owner.
What to do when you inherit a property with a sitting tenant?
A situation may arise where you may be forced to sell your house. This can be very problematic when in most cases of ‘Sitting Tenant’ properties there is an acrimonious relationship. This tends to have some pretty severe side effects – namely preventing buyers from buying the property. A tenant may become such as obstacle that the only solution is a company.
Selling a property with a sitting tenant
“When I had to sell house fast and I was stuck with my sitting tenant, I had to give my tenants a notice. When that did not work, I had to head off to my solicitor. The fact that they were not paying their rent on time worked out in my favour and I ended up with one less house, and the property buyers gained one. It was a long process, but at least I wasn’t stuck with a regulated tenant.”
Mark Ingham, Doncaster
Sitting Tenant properties are in decline as tenants mature. Selling a property with a regulated (sitting) tenant still remains a problem.
In the UK, there are 4.1 million are in rental accommodation, a very small percentage of these tenants are sitting tenant. A definition of a ‘Sitting Tenant’ is an individual who has a legal right to remain in a property for the rest of their lives. There is also the issue of succession and the tenancy can be ‘passed’ on to a family member. These tenancies are also known as regulated or protected. Typically this type of tenancy happened before the 15th January 1989, and come under the Rent Act of 1977.
Due to the length of time, ‘Sitting Tenanted’ properties are becoming rarer. On the death of a tenant the property reverts back to the owner.
Landlords of ‘Protected Tenancies’, have very little rights to their properties, and in many cases there are no tenancy or leasing contracts. The landlord cannot evict, nor enter the property without just cause. The structural maintenance of the property is usually the duty and care of the landlord. Rents cannot be put excessively as a tenant will refuse to pay, adding even more burden to the owner.
What to do when you inherit a property with a sitting tenant?
A situation may arise where you may be forced to sell your house. This can be very problematic when in most cases of ‘Sitting Tenant’ properties there is an acrimonious relationship. This tends to have some pretty severe side effects – namely preventing buyers from buying the property. A tenant may become such as obstacle that the only solution is a company.
Selling a property with a sitting tenant
“When I had to sell house fast and I was stuck with my sitting tenant, I had to give my tenants a notice. When that did not work, I had to head off to my solicitor. The fact that they were not paying their rent on time worked out in my favour and I ended up with one less house, and the property buyers gained one. It was a long process, but at least I wasn’t stuck with a regulated tenant.”
Mark Ingham, Doncaster
The Cost of Living and Impact on Housing
As the cost of living and mortgage costs keep escalating, House Prices have experienced the biggest decrease in 12 years as per Halifax. Last month saw a 2.6% annual fall in prices or £7500 which [...]
Nationwide: House prices plunged at a rapid annual rate since the Financial meltdown
The UK house prices had the biggest fall and plunged rapidly over a span of 12 months the same as what occurred this previous year since the financial crisis 14 years ago. As stated by [...]
Surviving the Mini-Budget Crisis in June: Tips for Homebuyers
The First Week of June – Update The impending months will be tough for the UK mortgage sector as banks and building societies have already pulled out almost 800 residential plus buy-to-let mortgages meanwhile last [...]
Maximizing Your Chances: Strategies for Selling Commercial Property in the UK
Selling commercial property in the UK at times can be a painful process, setting the price and terms and condition of sale can significantly increase the sale-ability – but here are some steps: Market [...]
Bank of England confirms safeguard against inflation
The Bank of England issued a statement to reassure UK bank clients and financial markets after the purchase of crisis-hit Credit Suisse by competitor UBS, which was allowed by the Swiss government. After the [...]
Deal Clinic – Commercial Retail Conversion – SK14 1ES
Conversion of Offices into Residential Flats 68-70 MARKET STREET HYDE, MANCHESTER SK14 1ES Here's a property we generated at from our sell commercial property marketing that is up and coming at our 'Deal Clinic Tuesdays' [...]