UK Landlord Forum / Life

We have a flat which has been rented out for a number of years. We need to sell due to financial issues but the current tenant is fabulous, loves the flat and has furnished it really nicely. The tenancy has a break clause at 6 months so the first opportunity he could give us notice would be the end of September.

I realise it can't be easy if you're renting a place that's being put on the market. He has the flat looking really nice so is giving us the best chance of marketing it successfully.

However, there are a number of issues outstanding which make the timing of the sale difficult 1) a planning application for a dwelling behind our flat that would overshadow it badly. Decision due end of September. Estate agents have advised us to wait for that decision before putting it on the market 2) Managing agents  are consulting the leaseholders over a programme of major works with a bill of £14,000. There's no starting date for the works and we are trying to negotiate a reduced programme. Another leaseholder with a flat under offer says this has been a sticking point as the final bill is unknown. 3) Some leaseholders are advocating we pursue a Right To Manage case. We don't want to hold off selling too long and get caught up in this complication if they proceed.

For these reasons, we are considering marketing the property in October but I'm concerned that we have a small window of opportunity before the market starts to slow down. How can we best handle this so that the tenant doesn't hand in his notice and leave the property empty?

Get him to sign up for a new fixed term in September / October / November.

The he cant give notice, but you cant get him out.

Otherwise accept we all have free will, and what suits you, might not suit him.

Personally I would be completely honest and explain your situation face to face, and see what comes of it.

Thanks Boboff. Honesty is the best policy, I agree. Will just have to cross our fingers that he stays until the property sells.

Cool.

I was going for 3 and out of advice given and ignored by Newbies, you have restored some faith, thanks.

Quote from: Jasmine12 on September 01, 2015, 11:48:32 AMHow can we best handle this so that the tenant doesn't hand in his notice and leave the property empty?

There is a definite chance I might be misreading this here... so, if I am, forgive me.

It seems the Tenant is in a fixed term of 12 months. Even though the property has been let for a number of years, your agreement has a Break Clause opportunity at 6 months (assuming that's 2-sided), which is this month, so I'm assuming this 12 month fixed term for the current Tenant?

If the Break Clause opportunity passes you by, surely it passes you both by?

If the Tenant doesn't activate it, then he has to stay until the end of the fixed term. If you don't activate it, then he has to stay until the end of the fixed term.

But isn't your problem then that you'll be selling the property with a Tenant - and isn't it the case that you always get less in those circumstances, not more - you get more with vacant possession.

So, are you saying you want no-one to activate the Break Clause or you want to activate it at the very last minute?

Upon an initial read it strikes me that it might be better to have the property vacant so it can be sold... and achieve the highest price possible.

The Tenant doesn't have to leave when the property is sold... that is understood, isn't it? You can't just ignore the Break Clause and then sell it and tell him to get out... he has the right to stay until the end of whatever the fixed term might be... (again, I'm assuming there is a fixed term in this scenario). In any case, the Tenant doesn't have to leave when the property is sold... any sane purchaser (who wants vacant possession) will ensure that their Conveyancer puts this responsibility firmly upon you... so if you've sold it and the Tenant then refuses to leave... what do you do? Bribery? Follow the long and costly legal process? Beg and plead?

So, yes, honesty is the best policy - otherwise someone could end up being disgruntled and want to 'make you pay' (although not all people are gits).