40+ years tenant facing eviction. What rights apply?

[oliva14]

Hi,

 

On behalf of my father-in-law, can anyone advise on what rights would apply to a tenant of more than 40 years who is now being asked to vacate by January or purchase the property at the current market value? The later option is not possible due to age verses mortgage possibilities.

 

Are there any mandatory discounts applicable? Should he be looking for a buy out to fund relocation?

 

Any assistance would be most appreciated.

 

Regards,

Chris

[MrShed]

What is the reason he is being asked to vacate?

 

Sounds like a rent act tenant to me and as such I would be absolutely amazed if he can actually be made to vacate.

[MrShed]

Also, has your FIL ever signed any tenancy renewals? Does he have the original tenancy? If any renewals were signed, when?

[oliva14]

The reason for being asked to vacate is simply that the property (portfolio) is to be sold by the current owner who inherited x amount of properties from her father who is not dead but retired.

 

As far as we are aware the FIL has never had a tenancy agreement or rent book. Further to that, he has taken care of most modernisation and maintenance at the property during the years including landscaping gardens, building a small driveway, fencing, etc. I think the exception is the exterior painting which was done every five years or so.

[MrShed]

The reason for being asked to vacate is simply that the property (portfolio) is to be sold by the current owner who inherited x amount of properties from her father who is not dead but retired

 

Not a valid reason for her to ask him to vacate.

 

If your father-in-law is a Rent Act tenant, which it appears he is, then he has almost absolute security of tenure. i.e. he can stay as long as he wants.This is irrespective of who owns the property, whether ownership changes, etc etc.

 

Also, there are various rules with regards the tenant being offered purchase of the property, on a formal basis, first.

 

The value of a rent act tenant-occupied property is roughly 50% of market value...

[oliva14]

Thanks very much for your input. Could you just explain the term "Rent Act tenant" and what might qualify as such?

[MrShed]

I would probably advise that proper legal advice is sought on this as well.

 

Rent Act tenancies are somewhat more complex than modern day tenancies, and there are very sizeable financial penalties for those landlords who ignore the very sizeable rights of the tenant. I must stress though that this complication all works in your father in laws favour.

 

On the face of it, with the information I have seen, I see absolutely no route in which the landlord can enforce possession.

[MrShed]

A Rent Act Tenant is basically a tenancy that began before 1989. It is covered by different regulations than modern day tenancies.

 

It affords the tenant massive security of tenure, and extremely low rent (so low it is completely financially unviable for a landlord, hence the massive reduction of market value of a rent act property).

[oliva14]

Thanks very much. I believe that may well be the case as I understand the rent is only about £200 pcm even today but on the flip side, this is also the reason he never bothered buying a home so if the carpet is whipped away at the age of 63, he has no hope.

[MrShed]

Like I say, I cannot see how the carpet can be pulled for your FIL in this scenario.

 

I would have a read of this thread over on LLZ (which I posted on 5 years ago when a much more naive landlord! ).

 

Unfortunately the links within are dead now, but the thread gives some interesting reading for you:

 

http://www.landlordzone.co.uk/forums/showthread.php?t=817

[oliva14]

Unfortunately the links within are dead now, but the thread gives some interesting reading for you:

 

Wow! It does get somewhat complicated.

[MrShed]

What happens if the landlord wants to sell the

property?

A landlord who wishes to sell a property containing

flats must normally give the qualifying tenants the

opportunity to buy it. If the landlord fails to comply

with the first refusal procedure and sells to a third

party, he or she commits a criminal offence and may

be fined up to £5000. If the landlord sells his or her

interest in this way, the purchaser must inform the

tenants of his or her name and address, and serve a

notice on them saying that the right of first refusal may

apply. The tenants have the right to buy the property at

the price the purchaser paid. If the purchaser fails to do

either of these, he or she commits a criminal offence

and may be fined up to £2500. The time limit for the

tenant to exercise his or her right does not start until

he or she has been notified by the purchaser.

44

More information is contained in housing, key facts

booklet Residential Long Leaseholders: a guide to your

rights and responsibilities.

 

From this doc:

 

http://www.communities.gov.uk/documents/housing/pdf/138295.pdf