Potentially renting a property to be auctioned.

[Alex106]

Hi all,

I am after some advice on my current situation.

I am looking at moving out of student accommodation (tenancy ends at the end of June2013) and moving into a flat.

I have found the place I want to live in, seen it, know the upfront figures etc.

The problem is the owner is putting it up for auction, but has agreed to rent it to me for 12 months. So the ownership of the property will change while im living there.

Am I in any danger of the new owner telling me to move out with immediate effect? Or will they have to give me a period of notice?

I have not paid the letting agent anything so far!

What are your thoughts chaps?

[Ossiantoad]

As long as you have a proper tenancy agreement (Assured Shorthold Tenancy for example) then I wouldn't have thought you would have a problem. You would have rights and the new owner would have to jump through all sort of hoops if he wanted to get you out. Most properties that are bought at auction are purchased as investments so the fact that a good tenant is in the property is a good thing, it saves the purchaser having to find someone to rent it himself with all the associated costs that brings.

If the property was sold to someone who actually wanted to live in it themselves they would simply have to wait until the end of your agreement and then give you notice.

[Alex106]

Ossiantoad said:

As long as you have a proper tenancy agreement (Assured Shorthold Tenancy for example) then I wouldn't have thought you would have a problem. You would have rights and the new owner would have to jump through all sort of hoops if he wanted to get you out. Most properties that are bought at auction are purchased as investments so the fact that a good tenant is in the property is a good thing, it saves the purchaser having to find someone to rent it himself with all the associated costs that brings.

If the property was sold to someone who actually wanted to live in it themselves they would simply have to wait until the end of your agreement and then give you notice.

Thanks for your reply! Its put my mind at rest. I shall read all the documents through thoroughly before my pen hits their paper.

I am looking to rent for at least 12 months while I save for a mortgage deposit, so I could potentially be there for some time longer.

[Lynch91]

I believe they have to give you two month minimum notice if they want you to leave. But as said above some one going to auction to by a property already with a tenant is likely to want to keep the tenant.