We ask Rachel Walton, a residential property solicitor at Gordons, to answer readers’ questions.

Q:' I've seen a 2-bed terraced house going cheap but it has a secured tenancy. (It's on at about 70% of market value of similar properties without this caveat.) I understand that it would be nigh impossible to move on the current tenant unless they trash the place or fail to pay their rent, but if I bought the property and found it had a peppercorn rent, how could I legally raise that rent?'

'Also, the agent's particulars state that the property must be purchased as seen, is that legal? If so, how would I get a survey done from a lender? Are secured tenancies worth investigating, or are they just a can of worms?'
Jane Hughes, York

A: Unless a tenant is occupying a house under an Assured Shorthold Tenancy, a landlord will only be able to force a tenant to leave in very restricted circumstances. The precise grounds upon which a landlord will be able to rely will largely depend on the legislation prevailing at the time the tenancy began, but your assumption is generally correct.

'Such a tenant will also have the benefit of rent control and so the rental yield will be lower than other tenancies. The tenant will be able to apply for a fair rent to be registered by the local authority's rent officer.'

A higher rent can only be charged if the tenancy agreement permits and the landlord follows certain procedures. When a fair rent is determined, the landlord can object and the matter is then referred to a rent assessment committee. A new application cannot be made for two years. The registered rent binds any future purchaser from the Landlord. In determining a fair rent, the condition of the property and locality is taken into account but not the scarcity of similar accommodation in the area.

A stipulation that the property is sold as seen is emphasising that you will have no claim against the seller if you find any defects or disrepair and is perfectly legal. This does not prevent the lender conducting a survey, but you should note that the lender will merely be obtaining a valuation for its own security purposes and you should obtain a full survey report upon which you can rely.

Properties with secured tenancies can be worth investigating. They tend to have been in existence for many years, often with elderly tenants who have paid the rent. The property may become vacant before not too long - although it should be noted that if the original tenant dies and has lived in the property with family members, the relative concerned may have the right to take over the tenancy.

'Generally such properties are thought to be 30 -45 % cheaper than vacant ones: this price seems on the higher side and it would be worth seeking a valuation in the light of the particular tenant's circumstances'.

Q:'I understand that there are new regulations coming into place about landlords’ requirements to provide electrical safety certificates. Is this right and what will I need to do? (I currently let out a 3-bed semi detached house in West Yorkshire.)'
S. Walton, Scholes

'There is no obligation to provide an annual safety certificate to a tenant but a landlord must ensure that the electrical system and all appliances supplied are safe. This applies to both furnished and unfurnished property. Failure to comply with regulations is a criminal offence punishable by a £5000 fine or six months' imprisonment. Further, the tenant could sue you for damages and your property insurance could be invalidated.'

If you provide any electrical appliances (cookers, immersion heaters, kettles etc) the 1994 Regulations require you to ensure that they are safe to use when first supplied: each re-let is classed as a first supply. However there is a defence available to a private owner of a single dwelling (not let in the course of business) of "due diligence".

You are therefore advised to keep supplied appliances to a minimum, to keep purchase receipts and to ensure that operating instructions and safety notices are supplied. Make a note of all fuse ratings on the inventory and make regular visual inspections yourself (ensuring flexes are in good order etc). Keep a record on a safety checklist. You should also have periodic checks carried out by a qualified electrician.

To contact Rachel call 0113 227 0250 gordonslegal.com
If you have a question you’d like Rachel to answer in a future issue of Square Foot email editorial@sqftmag.com