Buying a house with tenants

firsttimeforeverything_2

Hi all,

I'm sure this is a common theme on this forum, so if someone could direct me to an existing thread that'd be great- but otherwise:

I'm considering making an offer on a property to live in ourselves, that currently has tenants in it- we're about to ask the EA what the situation is with them (I only know they've been there for over 3 years)-what do I need to know/to consider?

We want to live in the house ourselves

Thanks for your help.

19lottie82

I wouldn't proceed until you have vacant possession.

It can take months and cost thousands to get the current tenants out.

Ignore any promises made to you by the EA about how they will be moving out by a certain date. They CANNOT guarantee this.

firsttimeforeverything_2

Thanks Lottie,

Is it then a case of seeing for myself that the tenants have actually vacated? At one point would I be 'safe' in relying on assurances of vacant possession?

ognum

There have been some truly shocking posts on here about people buying properties and finding the tenants haven't vacated.

I would say, do some ground work, get an understanding of how much notice the tenants need, fixed term contract or rolling contract. Understand that even after having been given notice the current owner may need to take court action to get the tenants to leave, all this will take time.

Make it clear from the start that you will not exchange contracts until you have viewed the property with the tenants out. Don't take any other course, only exchange when you have seen they are out do not accept the vendors word.

Sorry if this sounds harsh but there are some vendors who don't understand that the tenants do not have to leave at the end of the contract and they will need a court order, once you have exchanged this becomes your problem.

Hope this helps.

firsttimeforeverything_2

Great, thanks both.

This is our third attempt at buying a house now and we're used to really poor behaviour from sellers, so I like to be prepared!

harrys_dad

firsttimeforeverything wrote: »

Great, thanks both.

This is our third attempt at buying a house now and we're used to really poor behaviour from sellers, so I like to be prepared!

Don't believe the Estate Agent either, they work for themselves, and occasionally the vendor, but NEVER for the buyer.

hazyjo

Also make sure they're not actually selling it tenanted (as an investment property)! Are the vendors saying they'll be served notice to vacate?

Jx

firsttimeforeverything_2

My BF has now spoken to the EA, who says their tenancy agreement has expired (I would want to see the documents, make sure that if it is now a periodic tenancy it won't run and run) and the tenants are already looking for a new house and would have to vacate when an offer is accepted.

We need to do a second viewing in the daylight (and it was hard viewing it with around 8 people in there in various rooms!), but if we do choose to make an offer I will be super-vigilant, thanks.

hazyjo

Don't forget, they're probably entitled to two months' notice if they're given it. They'll probably have to give one month if they choose to vacate.

A periodic tenancy will run and run until someone serves/gives notice.

Jx

Better_Days

OP, are there 8 tenants in the property? If so it sounds like it could be a nightmare getting everyone to leave.

If the tenants fixed term has expired and a new fixed term is not agreed between the LL and tenant then they will automatically go onto a rolling tenancy. The LL has to give 2 months rental periods notice, and then if the tenants don't leave go to court to seek possession. If the LL doesn't get his dates and/or his notices to seek possession right this could drag on for a very long time.

Do not be fobbed off by the assurances of the EA.

G_M

firsttimeforeverything wrote: »

My BF has now spoken to the EA, who says their tenancy agreement has expired (I would want to see the documents, make sure that if it is now a periodic tenancy it won't run and run) and the tenants are already looking for a new house and would have to vacate when an offer is accepted.

We need to do a second viewing in the daylight (and it was hard viewing it with around 8 people in there in various rooms!), but if we do choose to make an offer I will be super-vigilant, thanks.

You were advised above by lottie and others

Ignore any promises made to you by the EA about how they will be moving out by a
certain date. They CANNOT guarantee this.

If the tenancy is now Periodic there is NO "documentation" to show " it won't run and run"

The Landlord might serve notice or might already have done so. But
* he might have got the notice wrong
* his notice might be invalid
* the tenants might not leave anyway

Do not spend money on surveys, legals, mortgage applications etc until you have viewed the property again and it is empty.

If you are willing to risk your money for the above, certainly do not Exchange Contracts till you've seen it is empty.

(8 tenants? Perhaps all on separate contracts? Nightmare)