Regulated tenancy and I would like to sell?

by Readers Question

11:07 AM, 23rd May 2017
About A year ago

Regulated tenancy and I would like to sell?

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Regulated tenancy and I would like to sell?

I am a landlord and have a flat with a tenant with a regulated tenancy. I have had the flat since 2000. I would like to sell the property at full value.

Does anyone have any ideas how to dissolve the lease please?

Many thanks Jayne



Comments

Neil Patterson

11:10 AM, 23rd May 2017
About A year ago

Hi Jayne

The only way we know of is to negotiate a settlement with the tenant to move on.

It may be worth checking with our tenants eviction specialists as well but I am not sure what else they would be able to advise. Please see >> https://www.property118.com/evicting-tenants/

terry sullivan

11:27 AM, 23rd May 2017
About A year ago

there bis a market for these. when did you last increase rent? what lease-length is left. what is ground rent. what level service charges? you cannot dissolve such a lease and it can be rolled over to next generation. lots of variables BUT rental l;evel and lease length very important

Graham Bowcock

11:48 AM, 23rd May 2017
About A year ago

Hi Jayne

As the others have said you cannot just dissolve such tenancies and there may be succession rights, depending on how the tenancy arose and when. You will need to be sure of your position before doing anything. The rent will be governed by the Rent Officer but you are still subject to the same compliance issues (safety, smoke alarms, etc.) as for AST's.

I have spent the last thirty years advising on regulated tenancies, including dealing with the Co-op's houses nationwide; rarely have we persuaded a tenant to vacate. They stand no chance of getting a deal like they already have elsewhere and so, understandably, sit tight.

Terry is right that they can be sold and there is a market for such houses. You need an agent who understands the issues to advise you on getting best value.

Graham

Jayne Potts

12:29 PM, 23rd May 2017
About A year ago

Reply to the comment left by "Neil Patterson" at "23/05/2017 - 11:10":

Hi Neil,
thanks for the info. I have been down this road several times and keep coming up against a brick wall. I will check your llnk however I have spoken to my solicitor who is a lease expert and he advises that the lease is bombproof. just thought there might be another way.
thanks again for helping
Regards
Jayne

Jayne Potts

12:35 PM, 23rd May 2017
About A year ago

Reply to the comment left by "terry sullivan" at "23/05/2017 - 11:27":

Hi Terry,
I have spoken to my solicitor who is a lease expert and he has all the information regarding length of lease, and service charge etc.. Luckily I run the management company and the building is freehold so I am able to keep the management charges to a minimum. I also apply to put the rent up every two years with the fair rent officer so I am doing everything I can at the moment. I am wanting to sell so I guess I will have to take the 60-70% value of the flat that I have been offered over the years by various companies wanting to buy the flat with the protected tenancy and the tenant. thanks for your advice
Regards
Jayne

Jayne Potts

13:15 PM, 23rd May 2017
About A year ago

Reply to the comment left by "Graham Bowcock" at "23/05/2017 - 11:48":

Hi Graham,
Many thanks for your comments. My solicitor has more or less given me the same advice. Look like I am stuck with the tenant and the flat.
thanks again
Regards
Jayne

Simon

15:12 PM, 23rd May 2017
About A year ago

Hi Jayne

Speak to Argenta Estates, 020 300 22228, they buy them.

Ian Cognito

18:16 PM, 23rd May 2017
About A year ago

I know NOTHING about this subject, however, I would have thought that succession rights are key. There will be plenty of investors willing to play the long-game......................so long as the game does have an end.

Puzzler

8:29 AM, 24th May 2017
About A year ago

How did you acquire the property?

Jayne Potts

9:32 AM, 24th May 2017
About A year ago

Reply to the comment left by "Puzzler " at "24/05/2017 - 08:29":

Hi Puzzler,
I bought 1 flat in 1999 with no tenant and acquired another 2 in 2000. However one of the flats purchased in 2000 had a sitting tenant. I thought this was wonderful as I knew this lady and as a new landlord thought I had swam the Chanel as I had one flat with a paying tenant already. Unfortunately neither the previous vendor or the tenant told me about the lease. I ended up paying full price for the flat. Call me naive but I thought my solicitor would have done all the necessary checks. It was only when I came to review the rent a couple of weeks after completion that I found out about the lease. I then had a conversation with another solicitor who specialised in leases that I found out that I should have only paid approximately 60-70% of the value of the flat. We did in fact then sue the vendors solicitor and was awarded about a third of the value of the flat. Unfortunately for me property prices have tripled in my area so I have lost out again as I will still only achieve 60-70% of the current value as I cannot get rid of the lease or the tenant.
Hope this makes sense.
Thanks for asking
Regards
jayne

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