Home Question AST – Post Auction Property well below market rate

AST – Post Auction Property well below market rate

LANDLORD FORUMCategory: EvictionAST – Post Auction Property well below market rate
Big LL asked 3 months ago

I purchased a property at auction which is due to complete soon. I know there’s an AST in place for a term of 3 years well below market value. Here’s what I know about the property so far:

A landlord owned several properties in a block which have gone into receivership .Prior to receivership it appears the landlord drew up an AST on this property also owned by the LL at the time. paying rent at just 15% of market value for a period of 3 years possibly to engineer this situation. The landlord address on the AST appears to be one of the other properties also now in receivership. The AST has elapsed 1 year within this term. The copy I have of the AST via auction pack (signatures/names redacted) shows: (A deposit held in a TDS Scheme, A determination clause which can be executed 2 month’s notice either way 6 months after the tenancy start term, Rent review every year can’t be increased no more than RPI within the term, Property can’t be vacant for more than 21 days)

The management agency was going to force entry since the flat had a leak, but this wasn’t necessary in the end. Also, they were informed that apparently the property is vacant (at least none of the residents have seen anybody enter or leave the property)
The seller’s solicitor is apparently going to provide me with an unredacted AST post completion. I have no idea if this will materialise together with the EPC

I need advice on how and if I can proceed with following (Serve section 48, Send retrospective EPC and Guide to renting guide , Serve section 21)
I’m more than happy to pay for a solicitor to review and assist with my situation.

1 Answers
British Landlords Association Staff answered 3 months ago

You have a nymber of issue’s here.

  1. Contact the trustees for the bankrupts address. If need be contact the official receivers office. If the tenant has a new address contact the tenant to see if he has given up possession of the flat.
  2. consider serving a section 13 notice if the tenancy has expired to increase the rent. The Act will over ride the sham contract.
  3. Get Landlord Advice UK who experts in this area of law to serve the required notices. they will carryout checks to if you are compliant, if not what needs to be done so you can serve the correct notices. 020 3903 2000
  4. Good luck

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