Buying a flat already with tenants in

Richard_Webster

The tenants have to be given 2 months notice whatever happens so do you really want to wait that long between exchange and completion with no guarantee that the tenants would actually go at the end of that time.

That's a concern to a buyer, but if I was acting for the seller I would tell him to make sure the tenants had give before exchange as I would not want my client to run the risk of not being able to give vacant possession on completion if the tenants did not go as they can only be evicted by court order if they stay beyond the end of the notice period. So although he estate agent is saying these things the seller's solicitor may be more wary.

greyster

Richard_Webster wrote: »

The tenants have to be given 2 months notice whatever happens so do you really want to wait that long between exchange and completion with no guarantee that the tenants would actually go at the end of that time.

That's a concern to a buyer, but if I was acting for the seller I would tell him to make sure the tenants had give before exchange as I would not want my client to run the risk of not being able to give vacant possession on completion if the tenants did not go as they can only be evicted by court order if they stay beyond the end of the notice period. So although he estate agent is saying these things the seller's solicitor may be more wary.

At what stage should the seller being giving notice to the tenants do you think? As soon as he accepts an offer from a buyer?

GDB2222

Can I just point out that the OP is interested in buying with the tenants in place, ie without vacant possession.

greyster

Actually I'm interested in moving into the flat and for the tenants to move out. Sorry if there was confusion.

Owain_Moneysaver

Can you speak directly to the tenants and offer them some money if they move out early and leave the place decent? I'd imagine they might be pretty hacked off with the whole process of their landlord selling and they might appreciate being treated with some consideration by a prospective buyer?

poppy10_2

GDB2222 wrote: »

Can I just point out that the OP is interested in buying with the tenants in place, ie without vacant possession.

Yes, but it sounds like he is buying on a residential mortgage rather than a BTL, so his mortgage company may well require vacant possession

GDB2222

greyster wrote: »

Actually I'm interested in moving into the flat and for the tenants to move out. Sorry if there was confusion.

In that case, with respect, your question is a bit misleading. You need to buy it with vacant possession on completion, in which case why would you need to worry about how uncertain it is for the seller to get VP? I am fairly sure that the seller will be discouraged by his solicitor from exchanging before having the place vacant, although in the end it's his funeral.

greyster

GDB2222 wrote: »

In that case, with respect, your question is a bit misleading. You need to buy it with vacant possession on completion, in which case why would you need to worry about how uncertain it is for the seller to get VP? I am fairly sure that the seller will be discouraged by his solicitor from exchanging before having the place vacant, although in the end it's his funeral.

You are right, I wasn't too clear and with the help of you guys I've understood the situation better now.

Although I think one situation can still occur, they move out in time of completion but the place is still wrecked? I like the idea of bribing the tenants to be clean!

Catblue

greyster wrote: »

You are right, I wasn't too clear and with the help of you guys I've understood the situation better now.

Although I think one situation can still occur, they move out in time of completion but the place is still wrecked? I like the idea of bribing the tenants to be clean!

Why on earth are you taking on all this hassle? Buying a flat is enough of a hassle without you taking on the vendors' problems as well as your own. It is the vendors' responsibility to get them out and to hand over the place in a good condition - not yours.

Most buyers will walk away very quickly when they encounter the situation that you have just described.

The vendors must be rubbing their hands in glee - they have a buyer who intends to sort out the situation with their tenants for them, pay money to said tenants and then wait for months on end until the situation is resolved.

Find another flat that does not involve you sorting out the vendors' problems for them.

Doozergirl

I don't think the residential mortgage is an issue. If the vendor promises VP and fails to complete as a result of the tenants not having left then the mortgage won't be drawn down until the OP has VP. You are taking the mortgage yourself on condition of VP, in line with the lender's t's&c's

If the vendor gives you notice to complete then they are saying that they are ready and therefore giving you VP, then if you subsequently complete, the vendor becomes liable for your associated costs of getting VP and the interest on the property for not having given VP.

Ultimately, I think that the vendor's solicitor will take a more prudent line with the vendor and change their current attitude of having their cake and eating it. What you must establish is when this break clause kicks in as this will be your earliest entry date.