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Landlords: What You Must Check Before Buying a Property With a Tenant

If you are buying a property with an existing tenant, there are critical legal checks you must carry out before you complete the purchase.


If you miss these, you may later find it extremely difficult or even impossible to evict the tenant and regain possession.


This is not theory. This is settled law.


1. You Must Be Given the Existing Tenancy Agreement

When you buy a property with a tenant in place, you must receive a copy of the Assured Shorthold Tenancy (AST).


The AST is the legal document that proves:

  • Who the tenant is

  • When the tenancy started

  • The rent amount

  • The terms of occupation


Without the AST, you cannot properly prove the tenancy terms in court.


Under the Housing Act 1988, possession rights depend on the tenancy terms. If you cannot evidence those terms, any eviction claim is weakened from the start.


2. You Must Have Every Gas Safety Certificate Issued During the Tenancy

If the property has gas, the law requires an annual Gas Safety Certificate.


Under Regulation 36 of the Gas Safety (Installation and Use) Regulations 1998, landlords must:

  • Carry out a gas safety check every 12 months

  • Provide a copy of the certificate to the tenant


If the tenant has been in the property for several years, you must be given every gas certificate for each year of the tenancy.


Gaps matter. Missing certificates create compliance issues that can undermine eviction proceedings.


3. You Must Have the Gas Certificate That Existed Before the Tenant Moved In

This is the most important point — and the one most landlords miss.


Case law has confirmed that a tenant must have been provided with a valid gas safety certificate before they first occupied the property.


This was confirmed in Trecarrell House Ltd v Rouncefield [2020] EWCA Civ 760, which clarified that while late service may be remedied in some cases, no certificate at all before occupation could be fatal.


If the original gas safety certificate does not exist, or was never served before move-in, your ability to use Section 21 may be permanently lost.


4. Why This Matters When You Buy a Property

When you buy a property with a tenant in place, you also inherit:

  • The tenancy

  • The compliance history

  • Any past failures


You cannot fix missing documents that never existed.


If you later try to evict and discover:

  • No original gas safety certificate

  • Missing annual certificates

  • No evidence the tenant was served correctly


You may find the court refuses possession.


The Legal Consequence

If these documents are missing, eviction becomes:

  • Slower

  • More expensive

  • Higher risk

  • In some cases impossible using Section 21


You may be forced into Section 8 only, which requires specific grounds and evidence and takes longer.


What Landlords Should Do Before Buying

Before completing on a tenanted property, you should demand:

  • A copy of the signed AST

  • All annual gas safety certificates

  • The gas safety certificate that existed before the tenant moved in


If the seller cannot provide them, you need to factor that risk into the purchase price — or walk away.


Final Word

Buying a property with a tenant can be profitable.


Buying one without the right paperwork can trap you in a tenancy you cannot end.


If you are unsure whether documents are compliant, get them checked before you buy, not after you need possession.


That timing makes all the difference.

 
 
 

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© 2024 by Social Housing Options a Trading name of Social Housing London Ltd

 

Social Housing Options is the Trading name of Social Housing London Ltd is a company registered in England under Company registration number 13111721 with registered office at 3rd Floor, 86-90 Paul Street, London, England, EC2A 4NE.

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