Repossessed Auction Property Tenant Not Paying

Steve79

I have recently bought a repossessed property at auction and am due to complete on it next week.

The tennant who is currently in there is now 3 months in arrears which means that as the auction was only a month ago then the tenant had defaulted well before the auction but the auctionners did not inform anyone of this. The property would have sold for much less if this information was made public before the auction.

I would like to know if it would be possible or reasonable to negotiate a discount on the selling price due to this new information or is it too late as we have already exchanged contracts?

I would also like to know the best way to get the tenant out (legally) and how to chase any money they owe us. I know they would like to stay but we have bought it to live in ourselves and would like to move in as soon as possible.

I would be grateful for any advice on this matter

silvercar

I would also like to know the best way to get the tenant out (legally) and how to chase any money they owe us. I know they would like to stay but we have bought it to live in ourselves and would like to move in as soon as possible.

Could be your luck that they are in arrears.

Serve a section 9 notice once they owe 2 months rent. If they still owe two months rent at the court date, that is a mandatory ground for eviction. A few weeks later you go back to court and appoint baliffs. As soon as the baliffs are free they go round and turf them out.

alunharford

The tenants were most likely withholding the rent because the property was being repossessed and they had no way of knowing if the property was maintained, if they'd get their deposit back, etc. If you talk to them you may find the situation can be pretty easily resolved.

GDB2222

silvercar wrote: »

Could be your luck that they are in arrears.

Serve a section 9 notice once they owe 2 months rent. If they still owe two months rent at the court date, that is a mandatory ground for eviction. A few weeks later you go back to court and appoint baliffs. As soon as the baliffs are free they go round and turf them out.

Any idea whether the 2 months arrears at the auction date would count towards this? My guess is yes, but I don't know. Also, if the new buyers extract the rent from the tenants, can they keep it?

Finally, if the Op wants to move in there might be a deal to be done there, ie ignoring the rent arrears if they get out now.

Finally finally, I would be interested to hear what the rules are for mis-described properties. In this case, mis-described by omission.

duncan303

Consider this:

to whom in particular is the rent due to. As you have not completed yet you are not yet in possession of the title. Do you have the property insured for example.

from memory I had to complete within one month of the hammer, are you assuming that the occupants owe money to you prior to the auction date and/or not to the legal charge beneficiary who you suggesting forced the sale. Are there suffient funds from the proceeds to cover the outstanding debt?

How do you know they are in arrears, is this because simply they have not paid you?

It may be more productive to consider what the position of the current occupiers of the property is/are with respect to future occupation. Have you seen any agreement in the particulars/deed bundle, did you ask to see any at, or prior, to the auction?

Did you visit the property, or was it blind bidding.

Jowo_2

But what kind of contract does the tenant have? There are some tenants have such good security of tenure, they are almost impossible to get rid of.

Steve79

Thanks for all your posts so far

We were unable to view the property as the current tenant would not let anyone round to see it. I do have the property insured though. I know that they would like to stay in the property and may offer to pay the rent now but should I accept it or not?

I am not assuming that the occupants owe me money prior to the completion date (I presume they owe the bank) but I know that they are in arrears as I have spoken to the letting agents and they advised me to get rid of the tenants. I have seen the agreement and it expired in March this year.

I am hoping that the 2 months arrears counts towards this as I want to get them out asap. Could I negotiate a reduced selling price in the circumstances or is it too late? Would it also be possible to take legal action against the auctioneers post completion as a result of this situation?

Thanks

Steve79

The tenant has an AST and has been there about 3 years I think

silvercar

I have seen horror stories where an auction buyer was led to believe that tenants were on a short AST but the tenants themselves considered themselves to be assured tenants (ie sitting tenants).

If they are on an AST and the fixed term has elapsed then you can serve a section 21 notice to end at the end of a rent period, so 2 months notice is all that is required. You d wonder why it went to auction with tenants. The property would have been worth more vacant, so why didn't the seller just give the tenants notice and sell empty?

clutton_2

purchasers normally expect to buy a property with "vacant possion! - what does your solicitor say ?

if you did not consult him/her before the auction (*asking him/her to read the aucition legal pack on your behalf) you can hardly blame them for misadvice.

auctions are seriously Caveat Emptor - ie buyer beware - it is 100% up to you to do your research before bidding - once the hammer goes down - its your property - your responsibility - if you did insufficent research ahead of bidding, then sorry - you are the owner of a property you dont want

eco-friendly_2

but we have bought it to live in ourselves and would like to move in as soon as possible.

Honestly?

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Grrr.