When your landlord decides to sell the property you’re renting, it can be a worrying time. Will you need to move out? Are your tenancy rights protected? What happens to your deposit?
This guide explains your options and legal rights as a tenant in England when faced with a landlord selling their rental property.
What Happens When a Landlord Sells a Property?
The first thing to understand is that your tenancy agreement remains valid even if the landlord decides to sell. The property can be sold with you as the tenant, which means the new owner would take over as your landlord. However, the specifics depend on your tenancy agreement and the stage of the sale.
If you are on a fixed-term tenancy and the sale will complete to the new owner during that period, they are obligated to honour the existing terms until the agreement is ended, unless you mutually agree to amend or terminate it.
For periodic tenancies, the current or new landlord may issue the proper notice to end the agreement, but they must comply with legal notice periods.
It’s important to know that the transfer of ownership does not affect your statutory rights as a tenant.
If viewings are required, your landlord, or the estate agent selling the property, must seek your permission to enter the property. There will likely be a clause in your tenancy agreement which outlines access requirements.
For tenants, clear communication with both the existing and prospective landlord, or letting agent if your tenancy is managed by an agent on behalf of the landlord, can help to clarify expectations and ensure that all parties are informed about their responsibilities and rights during the sale process.
Tenant Rights When the Property is Sold
Here are your key rights as a tenant:
- Your Tenancy Agreement Remains in Force: Whether you have a fixed-term tenancy or are on a periodic agreement, your contract continues until notice has been given or served, or a mutual agreement is made by both parties; landlord and tenant.
- Right to Quiet Enjoyment: Your landlord must respect your right to live in the property without undue interference. Your co-operation with access for viewings and associated activities during the sales process is strongly recommended. Property viewings should be arranged with sufficient notice and your consent. Specific details will be outlined in your tenancy agreement.
- Deposit Protection: Your deposit should be held in a government-approved scheme. Upon successful completion of the property sale, this will be transferred to the new owner’s name with the scheme they choose to use. Make sure that the new owner has your up to date contact details as their chosen scheme provider will contact you directly to confirm deposit protection.
- Notice Period: If the new owner does not want to continue renting out the property, you must be given the appropriate notice as per your tenancy agreement and current UK law. Typically, this is two months for assured shorthold tenancies. Notice may be served by your current landlord or the new owner after the sale has legally completed.
Your Options as a Tenant
When your landlord is selling the property, you have several options depending on your circumstances and preferences:
1. Stay in the Property
- If the buyer is purchasing the property as a buy-to-let investment, they may want you to stay as a tenant.
- Open communication with both your current landlord or their letting agent and the prospective buyer, if possible, is key to ensuring a smooth transition.
2. Negotiate an Early Exit
- If you’re on a fixed-term tenancy and wish to leave, you can request an early exit with your landlord. However do be aware that the landlord is not obliged to grant this request.
- Ensure any agreement is confirmed in writing to avoid mis-understandings or potential disputes.
3. Wait for Notice
- If you’re happy to stay until formal notice is served, you have the right to do so.
- Keep track of all communication and ensure you receive appropriate written notice.
Key Takeaways
Your tenancy agreement remains valid if the property is sold to a new owner who is taking over the tenancy.
- You have the right to stay until proper notice is given or served.
- Communicate openly with your landlord or their letting agent and the prospective buyer where possible to understand your options.