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  • Buy-to-Let

    Couple unable to evict tenant due to old laws

    This article is about a couple who bought a property from a friend and rented it back to him, only to fall foul of old legislation when they tried to evict him.

    https://www.dailymail.co.uk/news/article-...-LIFE.html

    "Couple trying to evict tenant forced to give him cheap rent for LIFE"

    Is the Law an a**?!

    What would you do if this happened to you?

    Any redress?!

    Wishing this couple best of luck with this battle

    Stella

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    Unlikely to be remotely true in that rag

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    I think the key here is they bought it below market value and the tenant had an expectation of paying below market rate as a result. Although not in writing it created a kind of implied contract which was then breached at the point of intended sale. Unless you have this scenario you shouldn't have a problem. Although as has been said, being in The Mail we may not have the full picture.

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    Agreed.

    Their gentleman agreement (though there was a tenancy agreement in place) created an implied contract and the tenancy agreement was silence on the part of rent increase/ clauses on what would happen if they were to sell the house! Most accidental landlords (like me) or landlords doing a favour for a friend/ family member could easily fall foul of such law if no legal advice is sought when creating a tenancy agreement.

    I have certainly learned from this article!

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    The person lived in the property when it was purchased at below market value - they should have taken legal advice at the time regarding the implications of this.  The result does not surprise me.

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    "The pair were refused permission to appeal and fear the lease could even be passed on to his relatives when he dies."

    Why would they NOT confirm the conditions of the lease at the hearing?

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    I think it is dependent on what relatives he has and other parts of the law which his solicitor used in court.

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    This is a bit of a non-story imho.  It involves Sale and Rent Back which the vast majority of landlords do not undertake.

    However, it does highlight potential issues with buying below market value which we have highlighted on Property Tribes in the past:

    BMV Bombshell

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    The issue here is probably the promise that was made by the landlord. I am always a little wary of these cases reports but if the house was sold at below market value (as it seems it was) on the basis of a promise that the person could stay as long as it was feasible then there has been an estoppel and the landlord will be forced to make good on that promise. It is feasible for the tenant to remain there for the foreseeable future and so he will be entitled to do so.

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    David Smith
    Landlord & Tenant Solicitor
    Anthony Gold Solicitors

    Find me on LinkedIn: uk.linkedin.com/in/dsnsmith

    All opinions are my own and do not reflect those of my firm. No comment made should be taken as legal advice and you should consult a solicitor or other legal professional for advice on your specific situation.