Section 21 Change of Ownership from first Tenancy - Where you purchase, inherit or Transfer a property

Where there has been a change of ownership from the first Tenancy to the most recent Tenancy very precise rules MUST be followed - or the courts will send you an order stating -

 "Not satisfied the claimant is eligible to seek possession "
(nothing more - then we have to determine can we restore the case or begin again)


The rules are very precise and if you fall foul of JUST one point your application is null and void (For a Breech of Civil Procedure Part 55A) our guide shows you how to avoid the pitfalls. We call it building a bridge, more often than not we have to amend evidence to reflect the facts. This is permitted for the truth is the truth. 

Many moons ago the court form asked "Since the first Tenancy to a replacement Tenancy has the Landlord changed - It no longer asks this  - but the court rules still apply. So what is the Judge looking for


So what evidence requires changing and why?



Tenancy Agreements - Where you purchase, inherit or transfer a property the Tenant benefits from a right of continuity, and you cannot demote their rights.

So the first Tenancy and subsequent Tenancies should have a note where it says the old Landlords name. So fine line through the old Landlords Name (Mr Bob Smith - so still legible) and write by the side "New Landlord from X Date is now Betty Boo". Whoever completed the property transfer should have informed the tenants (Section 47, 48 etc) so your amendment is perfectly legal for you are clarifying facts, you are the new Landlord. So now the Judge looks at the claim formN5B and it is clear you as the claimant are indeed lawfully permitted to complete this form.

New Owner prohibited from dating a Section 21 to expire before month 6  of commencement of their ownership - This is why you amend the Tenancy. Also checking not issued until after month 4 commencement of your ownership.

Tenancy Deposits - Sadly this is where many trip up. Whilst we see many applications sneak through the court they should NOT and if spotted possession should be denied because 

1) When the old landlord sells the property they no longer have any vested rights for transferred to the new owner. So the deposit should have be unprotected and transferred to the new owner. So the Judge should be checking for

The previous Landlord protected the deposit within 30 days and was compliant, if not compliant  any later deposit protection (even by you would be invalid) and also checking you re-protected within 30 days. So Question 12 - 14 N5B looking you also re issued prescribed information within 30 days of this transfer.

2) Landlord Property Licencing - If the property is subject to any type of licencing the Licence is not Transferrable so question 11 N5B  would be non compliant unless you have a NEW Licence in your name. (Unless Agent was the Licence Holder this is not the same as 'the manager')

3) Re issuing Documents - New stakeholder should also be issuing the updated documents before they issue the section 21 Notice (Evidence - most recent copies of - How to Rent Guide, EPC, Gas Cert, Electrical Safety Cert, If applicable display HMO Licence and Gas Certs in communal hallways


More often than not these change of landlord applications fail because of poor presentation of evidence

  • The way to avoid this is to enclose a cover letter which must be short and concise - If you over burden the judge with too much you risk a hearing because they cannot easily digest the issues at hand. Example Letter

Please find enclosed my application and payment for request for possession

I would like to assist by clarifying the following. I bought the property on X  with the Tenant under a previous Tenancy. I have

Amended the original tenancy agreement to affirm I am the new owner

If applicable I have enclosed the previous owners Deposit Certificate and mine to affirm we are compliant with deposit requirements (on Question 14b N5B ) We have noted the date the previous landlord issued the prescribed information and also the date we reissued when we updated the deposit certificate.

If the property is owned by a company - please write such letter on company letterhead and preferably signed by a Director and must specify Director of X Company for where non compliant with Companies Act the Judge can reject for this reason alone (The same person who signs the claim form)


 

Any queries please call PIMS