Creating a new tenancy while property is on the market for sale?

Creating a new tenancy while property is on the market for sale?

9:54 AM, 8th December 2022, About A year ago 7

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Hello all, a scenario I have not come across before has arisen.

I have for sale a large converted Victorian house consisting of 1 x 1 bed and 3 x studio flats. It is fully tenanted with good LHA tenants faultlessly paying rent etc.

The property has been on the market for a fortnight and one of the tenants has gone into full blown ‘I will be homeless’ mode and left the property. I am left picking up the tab for the lost rent of £450 and council tax of £127.

My question is simple: Can I rent the room on an AST whilst its for sale? Estate agent says yes as it is being marketed as a going concern.

My concerns around this are probably obvious to you all – what if I get a buyer a week after I rent it? Can I still evict them if needed? etc.

Could I get a pre-tenancy agreement in writing with the tenant saying they are aware of the house being for sale and accept that the tenancy may have to end early (or words to that effect).

I would welcome your thoughts/experiences.

Thank you,


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Graham Bowcock

10:15 AM, 8th December 2022, About A year ago

Hi Mark, it sounds like you want your cake and you want to eat it.

There's nothing to stop you finding a new tenant, but you would need to do a full AST that would be passed to the new owner. You can't just ask the tenant to leave when you sell. Any "pre-agreement" will have no validity.

If the property is being sold as an investment, I can't see an issue with you putting a new tenant in anyway. I'd have thought that this would add value.

David Houghton

10:27 AM, 8th December 2022, About A year ago

Most buyers would prefer vacant possession. Further the tenant would need to sign postponement of their interest during the conveyancing process.


10:46 AM, 8th December 2022, About A year ago

Your selling a BTL property with tenants already living in the property.
If you have 3 or 4 tenants does not matter
Are you selling as a going concern ?
Does the large property have other uses ?
Could it be changed back to a large family home ?
Would another Landlord be interested in buying it ?
Yield and selling price may well decide this.
BTL lending has become a whole lot more expensive in the last 12 months
Why are you selling ?
You can't and won't get a tenant signed up who might be homeless in a few months.

Reluctant Landlord

11:55 AM, 8th December 2022, About A year ago

if you are selling with tenants in situ then explain to them their rights to live there carry on regardless of who owns the property. You might find this one upped and left as he/she was unsure what a sale may/may not mean.

Have a chat with them all explain the situation that you are selling as a going concern and that they wont be expected or need to move out (unless of course you are planning to sell the property empty??)

If you are selling on as a rental business, rental income is key so just get another tenant in an a standard min 6 month AST any LL hates voids. Profitability continues for you until you get a buyer.

If you want to still sell but the market looks more viable if the property is completely empty first then you need to go through the possession route.


11:58 AM, 8th December 2022, About A year ago

I'm guessing the remaining tenants are out of their fixed term so can be given notice if necessary so a new tenant would have minimum six months fixed.

It depends if you intend to sell to an investor. If there's a chance the buyer is not one then you're best to leave it vacant.


15:41 PM, 8th December 2022, About A year ago

With Xmas coming up, sales generally slow and conveyancing taking at least 6 months I think it would be best to get a tenant in asap (which should be easy.)
By the time the place is sold if the new owner wants to convert the building back to single use - which is probably unlikely - the AST will almost certainly be out of its fixed term.


10:45 AM, 9th December 2022, About A year ago

You are trading in a LHA rent restricted market as that benefit is I understand frozen for 23-24. Find a self funding tenant at a market rent and let on 6 month AST. A quality tenant has will help you, the tenant and any buyer.

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