Tenants threatening to block completion on our property purchase...

GDB2222

it seems to me that everything has been covered in the old thread already.

Tell your present landlord that you may not be able to move out on time, and check his position on that. The chances are that he will be very happy to keep you on, provided that you give him reasonable notice before you actually leave (or pay the rent for that period).

On no account buy any furniture!

The vendor will have to offer the tenants a suitable incentive to leave. Failing that, he will have to do what he should have done in the 1st place, namely obtain vacant possession and then start marketing the place. Obviously, the vendor does not want to have a period without any rent, so he has chanced things. As you have learnt to your cost, this is an issue for you as much as it is for your vendor, but as you wanted to go ahead with the purchase you have done so despite the drawbacks.

There are some positives in all this for you. It is quite likely that the vendor's contract with his estate agent makes him liable to pay the estate agent as contracts have already exchanged. This means that, if this sale falls through but he obtains vacant possession and puts the property on the market, the vendor might well be liable for a 2nd lot of fees. That is unless he subsequently sells to you of course. So you could well be in a fabulous position to bargain in those circumstances.

bf206

Thanks GDB2222.

We've just been told that the vendor has offered the tenants their deposit back in advance, in return for them agreeing to leave on time. But the agent has called me saying that he's spoken again to the tenants, they've made no mention of this 'deal' and are still maintaining their line of "doing their best" to vacate when their notice is up. And they're still refusing access for us to come and measure up.

The agent sounds very nervous about the whole thing. He wants us to speak to our solicitor and for it all to be done through the lawyers. He implied, although didn't say it in so many words, that the vendor might simply have said he'd done this to get the agent and us off his back.

Nightmare. I know everyone keeps saying we should have known the risks (and we did) - but I still think it is was fair enough we thought this an unlikely scenario...

bitsandpieces

Deposit back in advance doesn't seem that much to offer the tenants in the circumstances. They'll need a deposit for a new place anyway - but there's also the cost and hassle of moving. And that's before adding any extra cash as an 'incentive'.

If the tenants aren't strapped for cash - and are planning to leave the property in a good state anyway - they may not care much about getting their deposit back early. What does this save them? Even if it's a large deposit, a month's interest from banking it before rather than after leaving wouldn't be particularly worth bothering about.

GDB2222

in all probability, the landlord will have to offer his tenants a couple of thousand pounds to leave. Failing that, he will have to go through the process of evicting them, and he will then have a period without any rent whilst the property is remarketed. It is cheaper for him to pay the tenants a couple of thousand pounds, and I imagine they know that. I imagine that it is actually the landlord who is in denial.

DVardysShadow

I can see that this is not going to happen. Particularly if the tenants have the least idea that your longstop date is just 2 weeks after the s21 expires. That is not even time to get court papers served, let alone a hearing and a possession date and bailiffs.

It is a shame that the tenant is holding you to ransom - but then you did walk into it knowingly so I don't altogether blame him.

Your immediate problem is the fact that you have given notice on your current place. Go with GDB's advice and try to get your LL to accept withdrawal of your notice. That will take the pressure off . If he won't agree, you are into playing the same game as your vendor's tenant until either the deal completes or the contract expires. For the moment, you need to get this immediate problem solved.

From there, I think you need also to accept that you are very likely not to complete on the new place. If you do, it is a bonus. A lot depends on your Landlord - if he accepts your notice is withdrawn, you can sit it out and wait for the new place. If he wants to stick with your notice, then you will need to commit to another rental - but FG'nessS don't compound your mistakes by committing to a new rental until your purchase contract has reached the longstop date.

Apart from that, until the longstop date, you are the hostage of the tenant.

bf206

Thanks again GDB2222.

I agree about the vendor being in denial bit. I've only spoken to him once directly and, while polite enough, he's a property developer and sounded quite a difficult customer...

The biggest problem for us is that I think we've going to have to stop thinking we're definitely buying this place and just wait and see what happens on the day the tenants are due to move out, which is the day before completion.

We'll definitely see if our landlords can give us longer here, as has been suggested. Problem being, when we gave notice, it prompted them to put this place up for sale! It hasn't gone yet but has had offers. I guess completion on this place is most likely months away in any case - there isn't currently a buyer lined up.

Mind you, our landlords here haven't served us a s21 - we just agreed over email that we'd vacate on the day we suggested...

Maybe we'll just not move out of here if our purchase falls through! Fact is, we'd just never do that - which is what irritates us so much that these other tenants are threatening to, even if they are legally entitled to stay put.

missile

This could drag on for many months. Meanwhile you are in limbo. I would threaten to pull out unless vendor offers a cash bond to guarantee vacant possession and completion by a certain date.

misskool

Posts from a previous thread has been merged with the new thread, there might be a few duplicate posts

bf206

Thanks DVardysShadow - even if I can't quite bring myself to click 'thanks' when faced with the truth!

But that sounds like it in a nutshell. The agent still thinks the tenants will calm down, see sense and move out on time. Maybe that will happen but it's the uncertainty that's the killer for us.

Looking at the wording in the contract re the longstop date, it doesn't actually say the agreement is null and void if it reaches that point - just that "the buyer has the right to rescind the contract without penalty and with the deposit returned in full."

So, if this is a dastardly plot by the tenants to force the vendor/landlord to sell to them, surely that can't happen unless we formally pull out!?

bf206

Missile - appreciate the sentiment but, from what I can see, we're committed to buy until the longstop date so the vendor has till then to sort the mess out...

In practice, I think that's only going to happen from the point at which the s21 has expired.