Hi Dan. I did comment on your vid about your nightmare tenant saying I was in the process of buying my first BTL with tenant in situ. Pleased to say it finally completed last Friday. This video was really useful so thanks! My advice is to speak to the tenant directly. The previous landlord/letting agency were useless. I was told the tenant hadn’t paid a deposit, the house came “furnished” and that the rent is paid on the 10th. The tenant said they had paid a deposit, the only things provided in the house were a broken cooker and fridge and there was no fixed date as to when the rent is paid! I was then told “verbally” that everything’s sorted between the landlord/tenant. I checked with the tenant again that this is the case. So when I issued the tenant with the section 48 notice, I got them to sign a disclaimer to say I don’t hold their previous deposit, all items are the tenants and that they agree to pay on a fixed day - they then paid me my first months rent straight away! Looking forward to fixing the house up for them and being a good landlord hopefully resulting in them being a good tenant so thanks again for your vid!
Hi Phil, This is excellent feedback, thanks very much for sharing your experience. I`m really glad that you found my video useful and I`m pretty sure the tenants are glad that you are their new landlord. Thanks very much for watching and for letting me know how it worked out for you.
Hey Victor Edwards, Thanks very much for watching and for your comment, it's great to hear from you, I`m glad you found my video useful. Have a great day. Dan
Hi Avdarmaly, Thanks for watching and for your comment, we’ll I didn’t say that exactly 😊 but buying with tenants in situ it not quite as straight forward as it first seems. Thanks for watching and for your comment.
@@Avdarmaly Mine were already managed by the agents selling the properties who have referenced and have record of all rental payment. They were all long term working. I have been investing since 2014 and with ready made investment, you start earning from beginning. If tenants are on benefits, then ensure they have gaurantor in place.
There is a lot of misinformation about real sitting tenants (Rent Act 1977). Yes the Rent Control Officer does evaluate the state of the property and sets a Fair Rent every two years, usually based on a specific forumula, but that Fair Rent is the maximum that the landlord can charge the tenant. It is not 'THE RENT' - as if the rent payable is decided by the Government and the landlord has no say in the matter and must set that sum whether they want to or not. The actual rent is the sum agreed between the two parties - landlord and tenant - that is either at or below that maximum Fair Rent. There is nothing in law to state that the Tenant must agree to pay the maximum fair rent if they can no longer afford it. Rent needs to be agreeable between the two parties and that will inevitably be based on affordability too. In law, Fair Rents are based on the market rents in the area, making them higher than they used to be. So inevitably, this new development in law would make a nonsense of a sitting tenants security of tenure if the rent - even at the Fair Rent level - was now unaffordable to them and the landlord could then use the RCO to set a Fair Rent designed to get the tenant out. That would be harassment. If the landlord can't get the tenant to pay the maximum fair rent or won't agree a rent the tenant is happy paying, the landlord can either like it and lump it or has the option to sell the property again. They have absolutely no grounds for repossession, therefore, based on a coerced sum, not even at the Fair Rent and pleading the case of local market rents in the area will cut no ice at all with the tenant. Furthermore, they certainly have no moral right to ask it of any tenant either if they have taken over a tenanted property rather than let the property to the sitting tenant in the first place (which is highly unlikely now) whilst living elsewhere. The can try to get discretionary eviction though, if...and only if....the tenant has agreed to a rent up to the maximum legally chargeable at the Fair Rent and then doesn't pay it, resulting in rent arrears (not Fair Rent arrears). But there is no guarantee the courts will grant repossession. Not unless there are numerous defaults or the tenant clearly is not going to endure hardship by being evicted. I am a statutory sitting tenant under the Rent Act 1977. There is no way I am going to let some landlord parachute into my life by buying my flat and then dictating what rent I should pay up to the maximum Fair Rent in play at present, irrespective of my ability to pay, on a kind of like it or lump it or leave basis. That would be the equivalent of having a leasehold flat, with a new Freeholder shoving a letter thorugh my door upping my service charge by a rate that is unaffordable and unjustified and designed to get me to sell up. It is harassment. In law no freeholder can do that to a leasholder now. That is why it is often better for landlords taking on these types of tenancy to only take on poorer pensioners reliant on a State Pension. That way Housing Benefit will more than likely cough up the rent, because the tenant will agree to the Fair Rent happily as it won't be them shelling it out of their own pocket so they won't care what rent is being charged. I don't believe the Housing Allowance maximum is applied to Rent Act tenants but if it does, this approach might not work either if they have to make up the difference themselves out of their meagre pension.
Hey Dan, Thanks much for this Video. I am planning to purchase a property with tenant in situ and am looking for a specialist solicitor. This video has helped me so much. Thanks once again.
Hi Manjunath, You are more than welcome, thanks very much for watching and for your comment. I’m really glad that my video has been of value to you. Thanks again Dan
Hi Dan, have a query. I have been approached by a company representative inquiring about my new built 3 bed property to let. Apparently it is for their clients and they are ready to pay full market rent for the property. They are also ready to take full responsibility for maintaining and cleaning the property. What checks should be performed before I let my property to a company? May be food for thought for your next video.
Hi Manjunath, Thanks for your comment, this sounds to me like they plan to use your property as a rent to rent HMO. I suggest doing some due diligence on the "company" and asking them straight what they are all about. I hope this helps.
Hi Dan, thanks for this. This is one of the best videos I have seen on the subject. I am 4 months into a purchase and just realized how complex the process can be when buying with a Tenant in Situ. My solicitor does not seem to have much experience with this and never red-flagged the risks. I was wondering, if you are able to recommend a solicitor who may specialize in this? Thanks
Hi David, I`m glad my video is of use to you, thanks very much for watching and for your question. I can recommend Benn Hagger who has experience with purchasing with tenants in situ. Benn.Hagger@bates-wells.co.uk, 01473219282 I hope this helps Thanks again for watching
I wish my new landlord had watched this video before buying the building I live in. He has already offered me money to move out and threatened to enter my home while I'm out, forcing me to change the locks. And he's not issued s48 despite completing 3 weeks ago and me asking for it multiple times. It is very distressing 😞 I suspect he doesn't have the right kind of mortgage and is panicking now.
Hi geemcd, I`m really sorry to hear about your situation, I hope you are able to work things out with your new landlord and that he treats you as you deserve to be treated. Thanks for watching and for taking the time to comment. Good luck .
Hi Dan. Thank you for a great video. I have invested in the property with tenant in situ recently. You mentioned that the section 48 notice must be handed over. Who has to hand over the notice? The new landlord or the previous landlord? It looks like this law is in force in England and Wales. Do you know if this is the same in Scotland? Can I ask the tenant to sign a new agreement with me to avoid in issues? I have the copy of the letter from the previous landlord that the rent fee should be transferred to the new landlord and the email from the sellers' solicitor to my solicitor confirming that the rent should be paid to me after the settlement and the tenant is aware about new landlord. Is this enough or do I still need to serve section 48?
Hi Natalia, Thanks very much for watching and for your comment. A section 48 notice is the providing of an address where the tenant can serve notice upon the landlord, as the new landlord you will need to provide this to the tenant. This is for England and Wales and I`m not sure if its the same in Scotland, I would suggest asking your solicitor to clarify. I hope this helps Thanks again for your message
Hi Dan. I did comment on your vid about your nightmare tenant saying I was in the process of buying my first BTL with tenant in situ. Pleased to say it finally completed last Friday. This video was really useful so thanks! My advice is to speak to the tenant directly. The previous landlord/letting agency were useless. I was told the tenant hadn’t paid a deposit, the house came “furnished” and that the rent is paid on the 10th. The tenant said they had paid a deposit, the only things provided in the house were a broken cooker and fridge and there was no fixed date as to when the rent is paid! I was then told “verbally” that everything’s sorted between the landlord/tenant. I checked with the tenant again that this is the case. So when I issued the tenant with the section 48 notice, I got them to sign a disclaimer to say I don’t hold their previous deposit, all items are the tenants and that they agree to pay on a fixed day - they then paid me my first months rent straight away! Looking forward to fixing the house up for them and being a good landlord hopefully resulting in them being a good tenant so thanks again for your vid!
Hi Phil,
This is excellent feedback, thanks very much for sharing your experience.
I`m really glad that you found my video useful and I`m pretty sure the tenants are glad that you are their new landlord.
Thanks very much for watching and for letting me know how it worked out for you.
Thanks for video what an eye opener!!
Hi A N,
You are more than welcome, thanks very much for watching and for your comment.
Golden advice. Thanks
Hi Colonel Burton,
Thanks very much for watching and for taking the time to drops comment.
Thanks for this video, I had no idea that, there are this type of complications involves in buying a tenant in suit . Very very good video. Thanks.
Hey Victor Edwards,
Thanks very much for watching and for your comment, it's great to hear from you, I`m glad you found my video useful. Have a great day.
Dan
Basically, message is "stay clear of any tenant in situ properties".
Hi Avdarmaly,
Thanks for watching and for your comment, we’ll I didn’t say that exactly 😊 but buying with tenants in situ it not quite as straight forward as it first seems.
Thanks for watching and for your comment.
My last three properties had tenants in situ and I have no regrets. It worked out really good. You need to carryout your due diligence and checks.
@@SayemTabla what kind of due diligence? Bank statements showing payments on time?
@@Avdarmaly Mine were already managed by the agents selling the properties who have referenced and have record of all rental payment. They were all long term working. I have been investing since 2014 and with ready made investment, you start earning from beginning. If tenants are on benefits, then ensure they have gaurantor in place.
There is a lot of misinformation about real sitting tenants (Rent Act 1977). Yes the Rent Control Officer does evaluate the state of the property and sets a Fair Rent every two years, usually based on a specific forumula, but that Fair Rent is the maximum that the landlord can charge the tenant. It is not 'THE RENT' - as if the rent payable is decided by the Government and the landlord has no say in the matter and must set that sum whether they want to or not.
The actual rent is the sum agreed between the two parties - landlord and tenant - that is either at or below that maximum Fair Rent. There is nothing in law to state that the Tenant must agree to pay the maximum fair rent if they can no longer afford it. Rent needs to be agreeable between the two parties and that will inevitably be based on affordability too. In law, Fair Rents are based on the market rents in the area, making them higher than they used to be. So inevitably, this new development in law would make a nonsense of a sitting tenants security of tenure if the rent - even at the Fair Rent level - was now unaffordable to them and the landlord could then use the RCO to set a Fair Rent designed to get the tenant out. That would be harassment.
If the landlord can't get the tenant to pay the maximum fair rent or won't agree a rent the tenant is happy paying, the landlord can either like it and lump it or has the option to sell the property again. They have absolutely no grounds for repossession, therefore, based on a coerced sum, not even at the Fair Rent and pleading the case of local market rents in the area will cut no ice at all with the tenant. Furthermore, they certainly have no moral right to ask it of any tenant either if they have taken over a tenanted property rather than let the property to the sitting tenant in the first place (which is highly unlikely now) whilst living elsewhere. The can try to get discretionary eviction though, if...and only if....the tenant has agreed to a rent up to the maximum legally chargeable at the Fair Rent and then doesn't pay it, resulting in rent arrears (not Fair Rent arrears). But there is no guarantee the courts will grant repossession. Not unless there are numerous defaults or the tenant clearly is not going to endure hardship by being evicted.
I am a statutory sitting tenant under the Rent Act 1977. There is no way I am going to let some landlord parachute into my life by buying my flat and then dictating what rent I should pay up to the maximum Fair Rent in play at present, irrespective of my ability to pay, on a kind of like it or lump it or leave basis. That would be the equivalent of having a leasehold flat, with a new Freeholder shoving a letter thorugh my door upping my service charge by a rate that is unaffordable and unjustified and designed to get me to sell up. It is harassment. In law no freeholder can do that to a leasholder now. That is why it is often better for landlords taking on these types of tenancy to only take on poorer pensioners reliant on a State Pension. That way Housing Benefit will more than likely cough up the rent, because the tenant will agree to the Fair Rent happily as it won't be them shelling it out of their own pocket so they won't care what rent is being charged. I don't believe the Housing Allowance maximum is applied to Rent Act tenants but if it does, this approach might not work either if they have to make up the difference themselves out of their meagre pension.
Hi BG
Thanks very much for watching and for taking the time to share your thoughts
Hey Dan, Thanks much for this Video. I am planning to purchase a property with tenant in situ and am looking for a specialist solicitor. This video has helped me so much. Thanks once again.
Hi Manjunath,
You are more than welcome, thanks very much for watching and for your comment.
I’m really glad that my video has been of value to you.
Thanks again
Dan
Hi Dan, have a query. I have been approached by a company representative inquiring about my new built 3 bed property to let. Apparently it is for their clients and they are ready to pay full market rent for the property. They are also ready to take full responsibility for maintaining and cleaning the property. What checks should be performed before I let my property to a company? May be food for thought for your next video.
Hi Manjunath,
Thanks for your comment, this sounds to me like they plan to use your property as a rent to rent HMO. I suggest doing some due diligence on the "company" and asking them straight what they are all about.
I hope this helps.
Hi Dan, thanks for this. This is one of the best videos I have seen on the subject. I am 4 months into a purchase and just realized how complex the process can be when buying with a Tenant in Situ. My solicitor does not seem to have much experience with this and never red-flagged the risks. I was wondering, if you are able to recommend a solicitor who may specialize in this? Thanks
Hi David,
I`m glad my video is of use to you, thanks very much for watching and for your question.
I can recommend Benn Hagger who has experience with purchasing with tenants in situ.
Benn.Hagger@bates-wells.co.uk, 01473219282
I hope this helps
Thanks again for watching
@@new2property Cheers Dan, much appreciated.
I wish my new landlord had watched this video before buying the building I live in. He has already offered me money to move out and threatened to enter my home while I'm out, forcing me to change the locks. And he's not issued s48 despite completing 3 weeks ago and me asking for it multiple times. It is very distressing 😞 I suspect he doesn't have the right kind of mortgage and is panicking now.
Hi geemcd,
I`m really sorry to hear about your situation, I hope you are able to work things out with your new landlord and that he treats you as you deserve to be treated.
Thanks for watching and for taking the time to comment.
Good luck .
Hi Dan. Thank you for a great video. I have invested in the property with tenant in situ recently. You mentioned that the section 48 notice must be handed over. Who has to hand over the notice? The new landlord or the previous landlord? It looks like this law is in force in England and Wales. Do you know if this is the same in Scotland? Can I ask the tenant to sign a new agreement with me to avoid in issues? I have the copy of the letter from the previous landlord that the rent fee should be transferred to the new landlord and the email from the sellers' solicitor to my solicitor confirming that the rent should be paid to me after the settlement and the tenant is aware about new landlord. Is this enough or do I still need to serve section 48?
Hi Natalia,
Thanks very much for watching and for your comment.
A section 48 notice is the providing of an address where the tenant can serve notice upon the landlord, as the new landlord you will need to provide this to the tenant. This is for England and Wales and I`m not sure if its the same in Scotland, I would suggest asking your solicitor to clarify.
I hope this helps
Thanks again for your message
@@new2property Thank you Dan for explanation!
@@nataliakononova4226 your very welcome