First time buyer, tenant under notice

PancakeP

I've been to see a property today that has a tenant in, which the EA tells me has been served their Notice to leave and "will be gone" mid June.
I gather from reading posts on here, that they're likely to say this whether this is actually the case or not?!

I liked the property and could potentially buy the place cash if need be, so no worries from a mortgage/lender point of view, but would still want to get a full survey and obviously need a solicitor involved, so wouldn't want to be incurring costs with either of those until tenant has physically left.

Is that the right way to proceed with this?
Or should I be asking to see the tenancy agreement and/or notice of them being asked to leave aswell?
Could I put my offer in now, but on the grounds that it is on the condition that property is empty, before I instruct surveyor/solicitor? And if I do it that way, presumably there's nothing to stop someone else coming along to view the property the day after it's been vacated by the tenant and gazumping me?

Fire_Fox

Mid June, so they've only been served notice within the last week or so? Have you had a second viewing yet? Try to speak to the tenant whilst you are there.

BitterAndTwisted

If a landlord is trying to sell before they have got shot of their tenants, there's little prospect of them doing so now before you've had a survey done and made a sensible offer based on that.

Having a survey carried out is always a gamble. Even if the property was being lived in by the vendor, there's no guarantee that you'd want to go ahead after seeing the survey, so having one done while there's a tenant in situ won't necessarily increase the risk.

martinsurrey

The land lord will want the property gone as soon as the tenants move out, so waiting until then to get any searches done will probably mean he keeps it on the market until looking for a flexible buyer.

There is nothing wrong with getting the searches done now and just waiting for the tenants to move out before you exchange/complete.

A BTL seller is much less likely to mess you around, as he’s in it for money, not love, and there are no onward chain complications.

I agree with B&T.

Getting a survey done with tenants is no more risky than an owner occupier, but it does show your commitment to the owner, so I would go for it.

Brallaqueen

I can see your concerns about spending money on this purchase and being gazumped by another buyer, but IMHO you may want to think about how tenants can impact on the purchase

Although the LL may have served the tenants notice to leave the property, this does not mean the tenant will do so. Are you willing to wait potentially 6 months to puchase this property.

Have you seen the notice? Is it a section 21 or a section 8 notice, as they are two different things and used in different scenarios. Either way, there is no obligation for the tenant to leave until a court order is served and bailiffs turn up at the house which could be months down the line, more if the notice was bodged.

I'm not trying to put the wind up you, just that serving notice is a) not always done correctly by LL and they won't know til it gets thrown out of court and b) tenants have the legal right to draw it out for quite a long time.

If you want to continue purchasing this particular property, I'd be asking to see details of what exactly has been happening, why, and whether there are any indications that the tenantrs have agreed and started looking at their onward move.

PancakeP

Property only went on the market in the last week, so yes Notice served at same time as it went on, so they say . . .
Fair point about the survey being a potential gamble anyway, thank you.
House is fairly modern, built approx 20 years ago.

RAS

Speak to the tenant and find out what their plans are rather than the EA.

PancakeP

Tenant wasn't in when I viewed, EA took me round property on their own. Should I just happen to stop off on my way past one day soon . . .?

G_M

Yes.

Just because the tenant has been served notice does not mean they will leave. Legally theu can stay.

So 'mid-June' could become July, or August, or November......

And the condition they leave the property in is uncertain. Do the tenants want to leave or are they being chucked out?

grifferz

I would agree to check with the tenant because the agents can get "creative" or be mistaken.

For example, we are currently renting a property that has been on the market since late 2012. At the time the letting agent told us that they would give us written notice once they had accepted an offer.

There have only been a couple of viewings in all that time, and as one of them was leaving and I was closing up behind, I heard through the door the agent (same firm that are letting it) say, "the tenants have already been given notice so if you put in an offer they will be gone within at the most 2 months".

Two possibilities, either:

• He was lying to the viewers, or
• He genuinely but mistakenly believed we have been served notice already

He is wrong, but even if he was right that is a bold promise to make.

On the other hand, properties with tenants in are meant to be hard to sell so hopefully you won't have much competition!

Werdnal

Unless this tenant has given their own written notice to confirm they will be gone mid-June, the agent is waffling!

To clarify the situation: Assuming notice has been served correctly, it runs for 2 full calendar months (sometimes even longer if the tenant is on a statutory periodic tenancy), so if it has been served this month, then the notice will not expire until mid-June. However, that is not to say the tenant "will be gone" then. The notice does not make them leave - the subsequent court possession order that the landlord applies for after the notice period ends will end the tenancy. This may take another 4-6 weeks ontop of the notice period, but if the notice has been served incorrectly or there is any minor discrepancy in the court application (judges are fussy about details when they are making someone homeless!), the application can be thrown out and the 2 month notice period starts from scratch. This is why LLs are often advised not to try to sell with tenants in situ, and buyers are advised never to exchange on a tenanted property until vendor can confirm vacant possession!

On a good day, however, tenant may decide to move out on or before the notice end date.

So, earliest property could be vacant would be mid-late June, depending on the tenancy periods observed by the notice, latest ... got a crystal ball anyone????