Editor's note: This brief was summarised by The Property AI Team from a report by Property118. Read the original article for full details.
Landlord Sells Damp and Mould Property with Tenant in Situ
A landlord has sold a rental property with widespread damp and mould while the tenant remained in residence, after receiving a council Improvement Notice. The sale allowed remedial works to progress alongside the transaction, keeping voids to a minimum.
Landlords in England can now face civil penalties of up to £7,000 for serious Category 1 hazards, including severe damp and mould, where the legal conditions for enforcement are met. Under the Renters’ Rights Act, councils have greater enforcement powers, increasing the risks for landlords who fail to address dangerous conditions.
Damp and mould problems are not always straightforward to solve. The cause can be difficult to identify, and putting it right can cost many thousands of pounds.
A Property118 landlord approached Landlord Sales Agency wanting to sell some of his older rental properties. One property had an EPC D rating and was likely to require significant investment to reach a C rating in future. A selective licensing inspection had identified a number of Category 1 and Category 2 hazards, including widespread damp and mould in the kitchen and bedrooms, caused in part by defective guttering and inadequate ventilation.
Liverpool City Council issued a formal Improvement Notice requiring repairs within a specified timeframe and council approval of the work. Failure to comply could have exposed the landlord to a substantial civil penalty or prosecution.
Facing remedial works and strict council deadlines, the landlord came to Landlord Sales Agency to sell the house while the tenant was still living there. This allowed the sale and remedial works to progress together, keeping voids to a minimum rather than waiting for the tenant to leave, completing the works and only then starting the sales process.
The agency first established what the Improvement Notice required, then marketed the property to its network of buyers with full disclosure of the inspection findings and the plans to address the compulsory repairs. It secured a cash purchaser looking for a value-add investment. The buyer agreed to proceed before the required works had been completed. With Landlord Sales Agency coordinating the project, they paid a standard non-refundable deposit before the property sale contracts were exchanged. The deposit formed part of the agreed purchase price rather than an additional charge.
The landlord had already served a Section 21 notice before contacting the agency. The agency worked with the tenant to arrange access for marketing, viewings and surveys, found a buyer and secured the sale all while the tenant was living in the property. It continued to liaise with the tenant and arranged the remedial works to start as soon as the tenant had moved out. It kept the buyer and seller updated throughout and liaised directly with the council and builder to ensure the works were completed and inspected as soon as possible to keep the sale moving and complete as fast as possible.
Landlord Sales Agency says it wants landlords to know that, no matter what type of challenge they face—whether it is finding the right buyer for a property needing repairs or selling pristine properties without leaving them empty and losing rent for long periods—it works to find a solution tailored to their needs. The agency was founded by landlords and describes itself as a first-class service for landlords. It adds that whether you own one property or a large portfolio, and whether your property is in need of repair or in pristine condition ready to sell as a turnkey business, it can help you find the right buyer.
Tenanted properties typically sell for between 85–90% of vacant possession value without all the hassle of evicting tenants and rent coming in up to the completion, where possible. The agency sells properties in all conditions.
Source: Property118