Warning to landlords selling tenanted properties (From Kidderminster Shuttle)

Warning to landlords selling tenanted properties

7:20am Thursday 18th March 2010

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TENANT eviction and rent collection firm, Landlord Assist, has warned landlords they must follow the correct procedures when planning to sell tenanted properties.

Many buy-to-let investors have suffered enormous reductions in the values of their investments over the last couple of years as a result of the financial crisis and, subsequently, some are opting to sell their properties to limit their loss.

In instances where properties remain tenanted, however, Landlord Assist says landlords should be careful to ensure the sale is conducted in a way that will not land them in hot water.

Graham Kinnear, managing director of Landlord Assist, said: “Landlords should be aware that if they are offering vacant possession on a property, then the tenant must vacate by the completion date.

“This may sound obvious but there are many instances when this doesn’t happen.

“Tenants are, generally, entitled to a two-month notice period and in the event that they stay beyond the expiry of a such a notice, the landlord will need to obtain a Court Order from the County Court in order to obtain possession.

“This can take an additional eight weeks or so. Beyond that date, a bailiff may be required to remove the tenant, which will add, possibl,y an additional four weeks to the procedure.

“If the seller has contracted to sell on a given date and the tenant has not left, then they may find themselves in breach of contract and their purchaser in a position to sue for damages.

“Not only would the buyer be entitled to pull out of the sale but the landlord may have to pay significant damages and costs to them.”

Stephen Parry, commercial director of Landlord Assist, added: “There are a number of methods to deal with this potentially difficult situation, which just requires some forward planning on the part of the landlord.”

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