I have tenants in my house and am about to place the property on the market. The tenancy was an initial six-monthly with a one-month notice. This started in December of 2007, but there has only ever been one tenancy agreement. The Agents tell me that this is ok since the terms continue, but I would like your comment on this.
The property will normally need to be sold with vacant possession, unless of course the buyer wants to buy as an investment and is happy to purchase with the tenant in place. Unless the buyer agrees to buy with the tenant in occupation I would not advise that you exchange contracts giving vacant possession until it is known that the tenant has actually vacated the property. Even if the tenant has promised that he will leave on a certain date you cannot be absolutely sure that he will leave and if he does not then it is you that will be in breach of your sale contract. Regarding the fact that the tenant is still in occupation under the original 6 month tenancy agreement signed in 2007, you may only have to give 1 month's notice instead of the usual 2 months notice. However, we would always advise you to take specific legal advice before giving notices as this can be a tricky area of law. In all other respects, so long as it was correctly drawn up initially, there should be no particular problems with the fact that it was granted in 2007. Certainly, as you are now considering marketing the property, you should not sign a new tenancy agreement as you will have to give that for a minimum of 6 months.
Contact Jacobs & Reeves for more details on this post. http://www.jacobsreeves.co.uk
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