Completion of vacant possession BEFORE tenants leave?

maa299

Hi

I'm buying a flat as a vacant possession. It's got a running tenancy at present, and the tenants need 2 months' notice to leave.

If I complete before the tenants leave, will I automatically become the landlord? I don't want that...the vendor (who is also the managing landlord) says that he'll take responsibility for the check-out and inventory etc.

Thanks in advance...

DVardysShadow

If you complete before the tenants have gone, you become LL. In your position, I would exchange contracts to buy, leaving enough time for tenants to be moved and make the contract subject to Vacant Possession. Your conveyancer can advise.

ginvzt

If it is being sold as vacant possession, why there are tenants? I wouldn't take it with the tenants in - for all you know, they may refuse to leave at the end of 2 months!!!

You are buying it to live in yourself, not to let out, right?

Get the current owner to sort this out, or get him paying you rent (by reducing the agreed price) for every month of delay. If you are having mortgage, I believe, you would need to inform mortgage company and they may not want to let you the money on normal mortgage, but make you to sort out something along 'buy to let' terms.

I am sure someone more knowledgeable will be here soon to explain why you shouldn't do it!

N79

Since your residential mortgage will require vacant possession at completion you can not complete while the Ts are there. Exchange at this point would place the risk of a failed completion due to your inability to pay the purchase price (because your mortgage company refuses to advance the loan) into your hands.

Simply wait for vacant possession and then exchange and complete on the same day?

Be warned that if can take 6 months to evict Ts. Longer if the appropriate notices have not yet been issued and potentially forever if the Ts are not on ASTs.

DVardysShadow

N79 wrote: »

Simply wait for vacant possession and then exchange and complete on the same day? .

This is a situation where this option is viable for the buyer. Seller may not wish to tip tenants out and risk non completion.

Since your residential mortgage will require vacant possession at completion you can not complete while the Ts are there. Exchange at this point would place the risk of a failed completion due to your inability to pay the purchase price (because your mortgage company refuses to advance the loan) into your hands.

Could get mortgage offer extended to a sufficiently distant completion date?

charliee_3

for heavens sake dont even contemplate it.. do the tenants even know the house has been sold? It could run and run as they dont have to leave without proper evicition procedure etc being followed which can take ages and council may advise them to stay put if they dont have anywhere else to live.. plus if they are put out by being chucked out on the streets they could cause all sorts of damage, cement in the toilet, breaking things, etc.. once you have exchanged you are responsible for the house and would have complete reagrdless of the condition..
plus you would have to insure it with a tenant in which may be difficult on a normal policy...

princeofpounds

If you buy it, and it fails because tenants don't leave (the ONLY way they can legally be made to do so is a court order which can take time, not just 2 months notice if they kick a fuss), then it will be costs and damages all round. In theory you would be able to sue the vendor for not giving you what they said they would, but it would be messy.

mlz1413

maa299 wrote: »

Hi

I'm buying a flat as a vacant possession. It's got a running tenancy at present, and the tenants need 2 months' notice to leave. when does exsiting contract end, how long have tenants been there? if T are in a fixed term then you have to wait for the end of contract. Your solicitor really should have discussed the implications with you - have they as yet?

If I complete before the tenants leave, will I automatically become the landlord? I don't want that...the vendor (who is also the managing landlord) says that he'll take responsibility for the check-out and inventory etc.
Yes you would be the LL so don't complete, I would not exchange whilst T are still there.
Thanks in advance...

The T may well leave as requested, but your solicitor/conveyancer should be advising you against signing any binding contract whilst the T are still in flat. Ensure you ask them anything that worries you.

maa299

Hi everyone

Thanks for the replies.

I'm buying in cash, no mortgage. The tenants are aware of what's going on, and they've been there for 7 months (break clause may be invoked). It's not an AST, by the way.

I'm paying a holding deposit, as a sign of seriousness and to grant me exclusivity for an agreed period. As soon at the vendor's solicitor receives that holding deposit, the vendor will serve notice on the tenants and give me sight of the written document.

What do you think?

silvercar

I think its the vendor's problem to give you vacant possession. If you exchange with an agreed completion day and the tenants haven't moved out, the vendor will have to ensure they move out and pay you any costs incurred as a result of the vendor not honouring the contract. The contract is two way - he agrees to provide an empty property and you hand over the money. If he fails to provide an empty property he is in breach.

Ulfar

The landlord needs to give notice and get the tenants out before you exchange contracts.

Just because he gives notice there is no guarantee that the tenants will move out. If they go to the the council to be re-homed the system is set up so that they have to be evicted to be classed as homeless to get help.

This is not a 2 month thing and can take much longer.

This situation is not your problem but your vendors and their greed in wanting rent until the last possible moment.