Navigating a property with a sitting tenant can already be complex — but when there’s no formal contract in place, the legal and financial stakes rise significantly. Whether you’re a landlord, prospective buyer, or property investor, understanding your rights and obligations when dealing with a sitting tenant without a contract is essential.
This article unpacks the legal framework, risks, and possible remedies involved in such scenarios in the UK — particularly within London’s competitive property market — and explains how Fraser Bond can guide you through managing or resolving these tenancy challenges.
A sitting tenant is someone who occupies a property under an existing tenancy agreement, even as ownership changes. They have the legal right to remain in the property under the terms of that agreement — but when no written contract exists, the situation becomes more uncertain.
This often arises when:
The original tenancy agreement has expired
There was never a written agreement (verbal or informal tenancy)
The landlord inherited the property with an existing tenant
Ownership changed without tenancy documents being passed on
Even in the absence of a formal contract, a tenancy still exists if there is evidence that the tenant:
Pays rent regularly
Has exclusive possession of the property
Was given permission to occupy by a landlord or previous owner
In such cases, the tenant may have:
A periodic tenancy (month-to-month or weekly, depending on rent payment frequency)
Implied tenancy rights under the Housing Act 1988 or earlier legislation
Tenants are protected under statute, not just by contract.
Landlords cannot evict a sitting tenant without serving proper notice and, in most cases, obtaining a court order.
A verbal agreement is legally binding — even if hard to prove.
Without a written agreement, it can be difficult to prove tenancy terms. Ending the tenancy usually requires:
Serving a Section 21 (for assured shorthold tenancies) — but this is only valid if certain conditions are met
Or Section 8 notice, if there are grounds (e.g., rent arrears)
Without a documented agreement, landlords may struggle to enforce rent increases, recover arrears, or prove non-payment.
Properties with sitting tenants, especially without a contract, are less attractive to buyers unless they’re specialist investors.
May result in discounted sale price or legal costs post-acquisition.
Landlords may inadvertently breach:
Deposit protection regulations
Gas safety certification
Energy Performance Certificate (EPC) requirements
Offer a new written tenancy agreement that clearly sets out rent, responsibilities, and notice periods.
Ensure all legal requirements are met (deposit protection, right-to-rent checks, etc.).
If you wish to regain possession, serve a valid notice under the correct legal route.
Consult a solicitor to avoid procedural errors that could invalidate eviction attempts.
Sometimes the best approach is to negotiate a voluntary move-out in exchange for an incentive.
Fraser Bond can help mediate this process, ensuring compliance and smooth transitions.
If eviction isn’t viable, you can market the property as an investment opportunity.
Fraser Bond works with investor landlords actively seeking such acquisitions.
Dealing with a sitting tenant — especially one without a formal contract — requires specialised knowledge, legal awareness, and negotiation expertise. At Fraser Bond, we:
Conduct tenancy audits to determine the legal status of the occupant
Assist in formalising agreements or regaining possession
Advise on property sale strategies with or without vacant possession
Connect landlords with investor buyers who understand the nuances of sitting tenants
Whether you’re looking to resolve a tenancy dispute, sell a tenanted property, or acquire one as an investment, Fraser Bond ensures a compliant and commercially sound outcome.
While managing a sitting tenant without a written contract can feel daunting, UK law offers clarity — if approached correctly. Landlords and investors must tread carefully to avoid legal pitfalls and protect their property interests.
Fraser Bond provides the expertise and strategic guidance necessary to navigate these situations efficiently and lawfully. Get in touch with our team today to discuss your tenancy or property concerns in confidence.
