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You cannot annul a previous fixed term agreement, I didn't realise the current agreement was in a fixed term and yes you must inherit it as is. At settlement the solicitors will issue an attornment notice transfering the rights of the Landlord under the RTA to you and instructing the tenants...

I would be asking the tenants to sign a new RTA and having your PM do an ingoing report as part of that agreement (it is much more difficult to do these with a furnished property but better than nothing). You are not concerned with the condition of the property from the beginning of their...