Offering on a house with tenants in situ

ruggedtoast

A house we were interested in that went STC has just come back on the market.

According to the EA there is a somewhat loopy tenant in residence who refuses to leave and the owner is in the process of evicting them - I dont know if this is why the last sale fell through, in any case they've been obstructive about letting potential buyers in for viewings - and she has been pretty mean to people who have gone to view.

In any case, the agent has arranged an afternoon of block viewings (safety in numbers!) , and we will very possibly make an offer as the location is right and the house looks good and reasonably priced.

However, I am a bit reluctant to start committing myself to mortgage arrangement and conveyancing fees while the tenants are still in situ - it sounds like the lady who lives there is not going to go until she is physically dragged out by bailiffs - and this could potentially be months away.

Does anyone know what the legal issues are when buying in a case like this - and what steps our solicitor would need to take to ensure that if we were to buy it, they definitely wouldnt still be there when we went to move in.

Many thanks.

zzzLazyDaisy

Okay, firstly the tenant is entitled to quiet enjoyment of the property and is within her rights to refuse to allow prospective viewers traipsing through her home, whenever it suits the LL/EA. It is not unusual for tenanted properties to be sold unseen. It really is not the tenant who is at fault here, the LL should have waited until the place was vacant before marketing the property, but that would leave him with a financial shortfall.

Second a 'notice to quit' is just that. She is entitled to refuse to comply and to remain in the property until the LL obtains an eviction order from the court. In fact, if she has applied to the council/housing association, she has no alternative but to dig her heels in, as if she vacates the property before a court order is obtained, she is considered intentionally homeless and the council/housing association won't help her.

So things are not quite as black and white as have been suggested to you.

However, from your own point of view, assuming you are satisfied that the eviction is going ahead and are prepared for the delays involved, then there is no reason why you shouldn't make an offer. Obviously you would not exchange and complete on the sale until she has left the house, and you may have to jump through hoops to get a surveyor in (or your surveyor may well have to wait until she has left). So there could be considerable delays.

ruggedtoast

Thanks, but I'm not attributing blame to the tenant or landlord, or pondering whether she has to allow other people in for viewings, none of that is my concern.

I'm asking about the legalities of beginning purchasing proceedings on a property where the owner has signed an AST with someone who won't leave until they are forcibly evicted by the courts.

sequence

Personally I'd wouldn't deal with any EA who says you should do "block viewings", clearly they are not too knowledgeable, what else they might get wrong? I'd forget it on that basis alone......

This is very disruptive for the tenant and by the sound of it its the EA or LA who are loopy not the other way around.

Mini_Bear

Also even if they did manage to evict her she could destroy that house internally - i have seen repos where every plug socket has had the wires pulled, every tile has been smashed all the flooring ruined, the windows broken.
this is a massive risk and you would b unable to negotiate on price until she had vacated, by which time it may be too late.

ruggedtoast

Its not ideal but its basically one of only two potential properties in the area we want to live at the moment.

BitterAndTwisted

No lender or a solicitor would allow a sale to go through until and unless you have "full vacant possession" and you could make a verbal offer on that basis. Then, should the "loopy tenant" trash the place you negotiate a price-deduction based on what the repair and refurbishment costs will be and reduce your offer by that much.

Or, wait until the property is actually vacant. This is the owner's headache not yours

ruggedtoast

Considering the price and the area - and that its back on the market - someone is going to put an offer in of some sort tenant or no.

I agree that they shouldnt be trying to sell it until the tenant has gone - but they are, and I dont want to miss out.

Hopejack

I personally would run a mile from it, but if you do want to go ahead make sure your offer is rock bottom - I think you are wrong to think that many people will want to buy it. As others have said, the tenant may go and do a lot of damage etc.

Repos imo are different but similar in that they can lead to months and months of probs for the buyer afterwards but as long as you have proof (notices etc of vacation of tenants) then you should be OK.

I agree you may find it hard to get a solicitor who will proceed on the purchase for you - that may be your first port of call.

BitterAndTwisted

Anyone with an approved mortgage will be unable to proceed until the property is vacant, just as you probably are. If you're a cash-buyer you should apply the same condition. Anyone who does otherwise is reckless and foolish

ruggedtoast

Basically what I want - is to put in an offer, have them take it off the market, but without my actually having to commit to more than £100 of legal or mortgage set up fees until I am personally satisfied that the tenant has left.