Have you inherited a protected tenancy property?

17/12/2006

If you have inherited a tenanted property, it could be that you are not quite aware of the restrictions of that ownership.

Many people owning tenanted properties are blissfully unaware that they do not have the freedom to do what they want with the property. Tenancies that began prior to 15 January 1989 enjoy a high degree of protection with tenants having the right to remain in the property for their entire lifetime should they so wish - indeed the tenancy can even pass on to the tenant's family if they have been living in the property with them.  

Known as "regulated tenancies" when formally registered with The Rent Service, the rent on these tenancies can only be increased by a minimal amount every two years in the case of the original tenant unless substantial  improvements to the property have been made.         

There are however thousands of  tenancies that have not been registered but where the tenants enjoy just as much protection. Indeed it is frequently only when the landlord dies (or wants to sell the property) that the family is confronted by the true situation.                

There are certain circumstances where possession can be achieved but these are few and far between.   Maintenance is also frequently a cause for headaches - with the owner finding it hard to afford repairs on the low rent being received and the tenant becoming increasingly disgruntled because of the relentlessly deteriorating condition of their home.

These tenancies can however be bought and sold just like any other investment - complete with the tenant in situ and retaining all their rights. The price is normally calculated on a percentage of the vacant possession value (based upon the age and circumstances of the tenant/s) and there are a number of reputable investment companies who can buy these quickly and easily.

 

One of these is Charterhouse Standard Holdings and you can call them on freephone 0800 169 5723 for further information.