Offering on a house with tenants

movilogo

How do you proceed for purchasing a house with tenants currently living inside?

I liked one such house. EA said if I agree to buy LL will serve notice to tenants for vacating.

Should I wait start survey etc. only after tenants have moved out?

PS: This not for BTL but for own living.

Dan-Dan

If it was me , i would offer and spend not one penny until they the property was vacant, but of course that might not be practical , the only other option is to start incurring costs and hope vacant possesion is achieved when it should be

V_Chic_Chick

Do be aware that serving notice doesn't mean that they will be out then - the tenancy continues, as only the tenant or a court can end a tenancy, not the landlord themselves.

If it wasn't served properly (and a very high proportion of S21 notices aren't), then it's invalid and will be chucked out in court ,and the process will have to start all over again.

After the 2 months notice is up, you'll have to wait for a court date (can be several weeks), after which you'll have to wait for court appointed bailiffs to evict them.

So, don't pay a penny until the current tenants are out, and be aware that it will be substantially quicker / less hassle to buy other comparable houses in the area.

ncooper1974

I would go the other way.
Offer, and if accepted, start the process but insist on the tenants being evicted before exchange of contracts

If you dont do anything till the tenants are removed, the vendor will not take you seriously, IMO

princeofpounds

There are two key issues. One is ensuring vacant possession on completion. This should be in any contract you solicitor draws up. In theory and usuall in practice, you can get compensation if the vendor fails to deliver this, so it is not your risk to bear.

The trickier part is between exchange and completion. Here you have a commitment, but still have the risk of being subject to delays, incremental damage etc. as the tenants are moved out.

So best practice for a smooth ride is to insist on vacancy before exchange. It's perfectly possible not to, but you might want to play it safe.

It's unlikely a landlord would agree to make a property vacant for surveys, legal work etc., so you cannot totally protect yourself against any kind of risk of sinking some money in, but then you never can.

Do not complete without vacant possession whatever you do. You will then become the landlord and inherit the whole mess.

hazyjo

Depends what you're willing to risk. I've bought a couple of places that were tenanted. But the tenants showed me round and I trusted that they would leave. Obviously if they'd not, I'd be stuck waiting for months or would lose money by walking away.

Make sure you view again before exchange to make sure they have vacated and the property is in the same condition as when you offered and nothing's gone missing!

If I were in your position, I would start the buying process, but what you do is your decision.

Jx

RAS

1. Ask the EA when the fixed term ends or if it is periodic? Ask for evidence to prove this. If periodic the LL has to give 2 months notice and that does NOT mean the house will be empty in 2 months.

2. Refuse to pay any money on lawyers or surveyors until the notice has been issued. Ask for a copy and the one thing on which I would spend legal fees is getting confirmation that the S21 is watertight.

3. As per above, do not exchange until vacant possession is granted and then check the whole property before you exchange.

hazyjo

I doubt any mortgage provider would agree to you exchanging without vacant possession.

Jx

movilogo

If you dont do anything till the tenants are removed, the vendor will not take you seriously

In same fashion, I wonder how serious vendor is about selling the property if is not lying vacant. Having a tenant means money coming so vendor may not fully committed to sales.

I think having tenant just introduces one more element in chain. Not only I need to find a buyer for my own house but also the tenant needs to find a place to move out.

Gwhiz

hazyjo wrote: »

I doubt any mortgage provider would agree to you exchanging without vacant possession.

Jx

And nor would a solicitor typically let you exchange.

45002

movilogo wrote: »

How do you proceed for purchasing a house with tenants currently living inside?

I liked one such house. EA said if I agree to buy LL will serve notice to tenants for vacating.

Should I wait start survey etc. only after tenants have moved out?

PS: This not for BTL but for own living.

Hello movilogo

Do you know how long this tenant has been living there for ?

Date the tenant 1st moved in !