Succession in a Registered Tenancy

[Andrew-P]

Hi everyone I need some advice.

 

A company I work with have a number of properties most of which are commercial but a couple are regulated.

 

One of the properties was the sole tenancy of a man who we understand was in a Civil Partnership and he has unfortunately recently died.

 

We need to be fair and do the right thing by his partner however, we also want to protect our investment and make sure that there is not a further succession of the tenancy as it is already way below market value for the properties which are highly sought after.

 

Any advice on what we should do would be much appreciated.

 

Thanks in advance.

 

A n d r e w

[MrShed]

Was his civil partner resident in the property at the time of the death? Was the tenancy itself inherited by the deceased tenant from someone prior?

[MrShed]

Oh by the way - I would dispute your statement that it is "way below market value" - it IS the market value, due to the rent act tenant resident. I am unsure what you mean by protecting your investment, as surely you paid a market value rate taking into account the reduction in the value of the property with the rent act tenant? Also, you may not be able to ENSURE that the tenancy is not succeeded...the tenancy can either be succeeded, or it cant. Its as simple as that. It has nothing to do with being fair to the partner, it is about your absolute legal obligation to abide by their rights (or not, as the case may be, if they have no rights).

[Andrew-P]

Mr Shed - thanks for such an amazingly quick reply.

 

The partner was resident at the time of death.

 

The tenancy was not inherited by the deceased tenant. A new tenancy was created for him c.1975

[MrShed]

In that case, the partner has a right to succeed the tenancy if they so wish. The tenancy would become an assured tenancy, not rent act.

[MrShed]

And - only quick as I apparently have nothing better to do tonight

[Andrew-P]

Your advice is very much appreciated.

 

I understand that rights are absolute in this case but we have never had a situation like this before (or for a very long time) and that is why we were looking for guidance.

Also there is a human factor here and, even if the partner has no right to the existing terms as looks likely, we need to be sensitive as they are going to be in distress.

 

Thanks again - rep added.

[MrShed]

Thats fair enough Andrew, was merely laying it on the line what I would say (and this is far too business like for my liking, as it is unfortunate that it is as a result of someone passing away), but the fact that the new tenancy is an assured tenancy will be beneficial for you financially. You also will no longer have the concern moving forward of future succession. Best of luck.

[45002]

Mr Shed - thanks for such an amazingly quick reply.

 

The partner was resident at the time of death.

 

The tenancy was not inherited by the deceased tenant. A new tenancy was created for him c.1975

 

The succession rights can happen only twice from a regulated tenancy and the Assured tenant will be able to challenged any Rent increase,via The Rent assessment committee..

Edited August 4, 2011 by 45002

[Andrew-P]

Thanks for this - 45002.

 

Good to know.