How to Sell a House with Tenants in London – Expert Guide

How to Sell a House with Tenants in London – A Landlord’s Guide

Selling a property in London with sitting tenants can be a complex process, but with the right approach, it can be done smoothly and legally. Whether you’re a landlord looking to sell your rental property with tenants in place or you need to vacate the property before sale, it’s important to understand your rights and obligations.

At Fraser Bond, we specialize in helping landlords sell tenanted properties efficiently while ensuring compliance with UK housing laws. Here’s everything you need to know.

Can You Sell a House with Tenants in London?

Yes, you can sell a property with tenants still living in it. There are two main options:

1. Sell with Tenants in Situ – The buyer takes over the tenancy agreement, making this an attractive option for property investors.
2. Sell Vacant Possession – You serve notice to your tenants before selling, making the property available for buyers looking to live in it.

Each approach has pros and cons, depending on your situation.

Step 1: Check Your Tenancy Agreement

Before selling, review the type of tenancy agreement in place:

• Assured Shorthold Tenancy (AST) – The most common agreement, typically lasting 6 or 12 months. You can sell at any time but must follow legal eviction procedures if you need vacant possession.
• Periodic Tenancy – A rolling tenancy with no fixed end date. You must serve a Section 21 notice (no-fault eviction) with at least 2 months' notice.
• Fixed-Term Tenancy – If the contract hasn’t expired, you may need to negotiate with the tenant or sell with the agreement in place.

Step 2: Decide Whether to Sell with Tenants or Vacant Possession

Selling with Tenants in Situ

• Advantages:

  • Attracts property investors looking for rental income.
  • You continue receiving rent until completion.
  • No need to evict tenants, avoiding legal complications.

• Disadvantages:

  • Some buyers may be put off by existing tenants.
  • Viewings must be arranged with tenants, who may not cooperate.

Selling with Vacant Possession

• Advantages:

  • A wider pool of buyers, including owner-occupiers.
  • Easier to carry out refurbishments before sale.

• Disadvantages:

  • May require serving notice and waiting for tenants to leave.
  • Potential loss of rental income during the sale process.

Step 3: Inform Your Tenants

Regardless of your decision, communication is key. If tenants are staying, reassure them their rights are protected. If they need to leave, give them as much notice as possible and follow legal procedures.

Step 4: Work with a Specialist Estate Agent

Selling a tenanted property requires expertise. At Fraser Bond, we:

• Market your property to investors looking for rental properties.
• Handle tenant communications to arrange viewings.
• Advise on legal compliance for a smooth sale.

Step 5: Ensure Legal Compliance

• Section 21 Notice – If tenants need to leave, issue a valid Section 21 with at least 2 months’ notice.
• Section 8 Notice – If tenants have breached the lease (e.g., non-payment), this can be used for eviction.
• Deposit Protection – Ensure tenant deposits are legally protected before sale.

Conclusion

Selling a house with tenants in London can be complex, but with the right strategy, it’s possible to achieve a smooth and profitable sale. Fraser Bond specializes in assisting landlords with tenanted property sales, ensuring compliance, and finding the right buyers.

Need expert advice? Contact Fraser Bond today to discuss your options.