If there is a sitting tenant in a property being purchased - what formally terminates the tenancy?

[victorio83]

If they ACTUALLY MOVE OUT out so I purchase with vacant possession, does that 'properly' end the tenancy? - i.e. they no longer have sitting tenancy rights?

[devon]

if moved out they have no legal rights to it.

[torran]

If they move out and you purchase with vacant possession then that does properly end the tenancy.

However, it's unlikely they will do this as sitting tenants have much stronger protection against eviction and some fall under the Rent Act which means they'll be paying a much less than market value rent.

Don't purchase the property either

1) Till you are 100% the tenant is no longer in the property
2) You can afford to take the lower rent and still make a profit

Also bear in mind that the next buyer if you were to sell would face the same problems

[darce]

Their rights depend on what type of tenancy they have.

The purchasers solicitor should make sure vacant possession is obtained before completion.

If the tenant remains in-situ, then the change of ownership does not affect their tenancy.

The tenancy ends when either:
1) The tenant voluntarily surrenders the tenancy
2) The landlord obtains a court possession order; or (in a few cases)
3) The tenant leaves the property before the end of a fixed term.