How common are problems getting vacant possession?

redonion

I viewed a flat recently that has tenants, and am considering whether to make an offer.

How often do problems show up with getting the tenants out? Should I take this into account at all when considering whether to make an offer?

I can think of multiple possible problems (not saying any are likely, just thinking through the possibilities): Say the tenants turn out to be still well within an initial 1 year tenancy contract period and can't be served notice yet, or the landlord messes up some paperwork, or the tenants turn out to have just had a baby / would be on the streets or something and it's just unethical to kick them out, or even violent tenants and nobody wants to take responsibility to physically kick them out.

redonion

Oops, wrong forum, would somebody mind moving to "House Buying, Renting & Selling"? Sorry...

mrginge

Well if you can speak to the tenants you can at least get an idea if there's likely to be any issues, but unfortunately with a tenanted property you can never be sure until they've moved out.

redonion

mrginge wrote: »

Well if you can speak to the tenants you can at least get an idea if there's likely to be any issues, but unfortunately with a tenanted property you can never be sure until they've moved out.

So what's the worst case?

1 year delay before getting possession?

System

Also unless you are going for BTL then most lenders will have vacant possession at exchange as a mandatory condition.

redonion

!!!!!! wrote: »

Also unless you are going for BTL then most lenders will have vacant possession at exchange as a mandatory condition.

OK, so basically worst case is it falls through after months of delays.

Yorkie1

redonion wrote: »

OK, so basically worst case is it falls through after months of delays.

Yes, broadly speaking.

The LL will have to give notice under the s.21 procedure (assuming in England / Wales).

http://forums.moneysavingexpert.com/showpost.php?p=52421475&postcount=6 for outline of procedure.

T may move out at the end of that notice period, or may not (they are not legally obliged to).

LL then has to go to court after expiry of the notice period to obtain a possession order. The hearing may take some weeks to be scheduled.

The dates or other technical issues are sometimes wrong, or the LL may not have dealt with the T's deposit properly at the outset of the tenancy, so that the order is not granted. If that's the case, it's back to square one with rectification of deposit issues, new s.21, new expiry period, new court hearing.

If the order is granted, there will be a date by which T should leave. If they don't do so, the LL has to go back to court for bailiffs. Again a few weeks, probably.

The Ts may leave at that point, but the property might be in an awful state.

Your solicitor will not allow you to exchange contracts (assuming you're buying with a residential mortgage, of course) until vacant possession is proved - and suggest you've double checked the state of the house first.

If the tenancy doesn't expire for a very long time, then you might also have difficulties with searches and your mortgage expiring before the due date - incurring you extra cost.

If you're seriously interested in this house, you need to ask:
- when does the fixed term of the tenancy expire (or is it on a rolling contract basis now)?
- has a s.21 notice been validly served?
- what is the expiry date of the s.21 notice?