SELLING YOUR PROPERTY
Sitting tenancies (also known as Protected or Regulated Tenancies) are secure lettings where the tenant is entitled by law to reside at the property for life under a contractual tenancy or statutory tenancy.
If a sitting tenant dies, their spouse is entitled to succeed to the protected tenancy and is therefore the successor tenant.
A son or daughter can also succeed to the protected tenancy provided certain conditions are met as laid down in The Rent Act 1977. Generally, any member of the successor tenant’s family continuously living with the tenant for a period of two years prior to the demise of the tenant is entitled to succeed to an Assured Periodic Tenancy.
In such cases the family member enjoys a protected tenancy for life at an open market rent and not a controlled rent. This rent can be challenged by the successor tenant by going to The Rent Tribunal which can reduce the rent. There can be no further successions after this.
G.A - London N8
‘I am an elderly sitting tenant living in a house managed by The Portland House Group since 2008 and I have been very happy with how the property has been improved and looked after’
V.E. London SW15
‘I am a protected tenant in the top floor flat of a large house which Portland House Group bought in 2013. Portland and their managing agents are always available to speak to and manage the property well’
CAPITAL GAINS TAX
Capital Gains Tax or CGT as it is commonly known is tax payable on the net profit of proceeds of sale currently 18%/28% dependent on whether you are a basic or higher rate tax payer. There is a tax free exemption for the year 2018/2019 at £11,700 per individual owner. An owner’s spouse or relative can be added to the Land Registry Title ownership to allow double the CGT allowance, £23,400 to offset against the profit. This amounts to a substantial saving. We recommend you consult your professional financial adviser to discuss this.