Tenant in situ

A tenant in situ is a tenant who remains in a property when ownership transfers from one landlord to another. The Latin phrase means "in place", the property is sold as an occupied investment rather than with vacant possession, and the existing tenancy transfers to the new owner automatically on completion. The buyer becomes the new landlord on the same terms, including same rent, same agreement, same notice requirements. The tenant does not need to move out and their rights are fully preserved throughout.

The term appears in property listings, auction catalogues, and conveyancing documentation to signal that the buyer is acquiring an income-producing asset rather than an empty property. It is used interchangeably with sitting tenant, though "tenant in situ" tends to appear in transactional property contexts including listings, valuations, legal packs, while "sitting tenant" is more common in discussions of tenant rights and security of tenure.

Why properties are sold with a tenant in situ

A landlord may sell with a tenant in place for several reasons. The tenancy may still have months to run on a fixed term, making vacant possession impractical without the tenant's cooperation. The landlord may wish to avoid a void period and continue receiving rent up to the day of completion. Or, under the post-Renters' Rights Act landscape, recovering possession in order to sell has become a more involved process: since 1 May 2026, Section 21 is abolished in England, and a landlord who wants vacant possession to sell must use Ground 1A, a mandatory possession ground requiring at minimum four months' notice and a 12-month re-letting restriction if possession is obtained. For many landlords, selling with the tenant in situ is simpler and faster than going through that process.

What the buyer inherits

When a property is purchased with a tenant in situ, the buyer takes on the tenancy as it stands. This means:

The rent level transfers unchanged. Any rent that is below current market rate continues at that level until the tenancy is reviewed or a lawful rent increase is applied.

The tenancy agreement transfers in full. Any obligations the previous landlord made, repair commitments, included appliances, agreed service arrangements, bind the new landlord equally.

The tenancy deposit transfers with the tenancy. The buyer must confirm the deposit is correctly protected in a government-approved scheme and that the required prescribed information has been served. If the deposit was not properly protected by the seller, the obligation to protect it (and the risk of a penalty claim) passes to the buyer.

Any compliance obligations inherit. Gas safety certificates, EICRs, EPC ratings, and any outstanding repair notices become the new landlord's responsibility from completion.

Existing arrears or disputes may also transfer. A buyer who does not conduct thorough due diligence can inherit a tenant in arrears or a property with an outstanding enforcement notice.

Pricing: the in-situ discount

Properties sold with a tenant in situ are typically priced below equivalent vacant properties. The discount reflects the reduced buyer pool, owner-occupiers requiring a residential mortgage generally cannot purchase a property with an ongoing tenancy, and the buyer's inability to renovate or remarket the property immediately. Figures vary, but a discount of 5–15% relative to vacant possession value is common in the current market, with the exact discount depending on tenancy type, rent level relative to market rate, tenant track record, and property condition.

For investor buyers, this discount can represent value: immediate rental income from completion day, no letting void, no reletting costs, and a clear yield from day one. The trade-off is reduced flexibility and the obligation to operate within the terms of an agreement the buyer had no hand in negotiating.

Due diligence checklist for buyers

Buying with a tenant in situ requires specific checks beyond standard conveyancing. Before exchange, a buyer should verify:

The tenancy agreement - is it a fixed-term or periodic tenancy? What are the rent, notice periods, and any unusual terms?

Rent payment history - has rent been paid on time, and is there any current arrears?

Deposit protection - is the deposit held in a compliant scheme, and has the prescribed information been served correctly?

Compliance documentation - are gas safety, electrical safety (EICR), and EPC certificates valid and in date?

Section 48 notice - has the tenant received a valid address for service for the previous landlord, and does the buyer need to serve a fresh one?

Right to rent - was the right to rent check conducted at the outset of the tenancy?

Any informal agreements - are there any verbal arrangements or side letters between the current landlord and tenant that would bind the buyer?

For a comprehensive buyer's guide including due diligence, financing, and how the Renters' Rights Act affects properties sold with tenants in place, see our blog article on buying a UK rental property with tenants in situ.

Tenant in situ rights

The tenant's rights do not change on a sale. The new owner is bound by the tenancy agreement and by the same statutory framework as the previous landlord. The tenant cannot be required to leave simply because ownership has changed. Possession can only be sought on the grounds for possession available under the Renters' Rights Act, the new mandatory and discretionary grounds that replaced the old Section 21 and Section 8 scheme for new tenancies from 1 May 2026. For a full account of the tenant's rights and security of tenure, see the sitting tenant definition.

Frequently asked questions

What does "sold with tenant in situ" mean in a property listing?

It means the buyer will purchase the property as an occupied investment, with the existing tenant remaining in place under their current tenancy agreement. The buyer becomes the new landlord at completion and cannot require the tenant to leave simply because ownership has changed.

Does a tenant in situ affect the mortgage?

Yes. Most standard residential mortgages cannot be used to purchase a property with an existing tenancy. A buy-to-let mortgage is required. Some lenders regard a tenant in situ positively, the rental income is already evidenced, but others apply stricter criteria, particularly where the tenancy is a regulated (pre-1989) tenancy or where rent is below market rate. Always declare the tenancy status when applying.

Can a landlord sell with a tenant in situ without telling the tenant?

A sale of the property does not legally require the tenant's consent. However, once sold, the new landlord must serve a notice under Section 3 of the Landlord and Tenant Act 1985 informing the tenant of the change of ownership, and must serve a fresh Section 48 notice providing a valid address for service. Best practice is for the selling landlord to inform the tenant of the intended sale as early as possible, as cooperation from the tenant during viewings and surveys makes the process considerably smoother.