Buying flat - how long before tenant has to vacate?

Fluffi

Hi All,

I'm in the process of buying a leasehold flat that is let by the current owner. My mortgage offer is in place, searches done etc and we're practically ready to exchange contracts. I'm keen to exchange as soon as possible but unfortunately the flat isn't yet vacant so we can't exchange.

The tenant has been served notice and their section 21 notice expired this week. However it turns out the tenant is in receipt of housing benefits and hasn't been able to find a new place to live and according to the estate agent, will have to apply to the council to re-home her (and her 2 children).

My question is how long could this process take? Its my understanding the current owner/landlord hasn't served a court order yet. The estate agent claims the current tenant is keen to move (to be nearer the children's schools) but on the other hand she's not found herself somewhere to live during the last 8 weeks so I'm not so convinced and I think the estate agent is downplaying the situation to keep me onside.

I'm temporarily renting myself, having sold my own home last year after a lot of stress and false starts so I want to get myself settled again as soon as possible. I have absolutely no interest in taking on the tenant. I'm buying this as home to live in and I don't want the hassle of trying to evict myself, so that's not an option.

I'm hoping some folk will be able to advise on:

• How long could it be before the flat is vacated for exchange? (worst case)
• What questions should I be asking my solicitor and the estate agent to speed this up and understand the situation better?
• Are there any other pitfalls I need to be aware of?

Thanks in advance

Pixie5740

It could take months to get the tenant out. The good news is that a section 21 was served (hopefully it was valid) and the LL is now able to apply to the courts to get an eviction notice. It might take months to get a court date, then even when an evication notice is granted the tenant still doesn't need to leave. The tenant can wait until bailiffs are appointed and physically remove the tenant from the property. That worst case scenario. There always the possibility that the tenant could trash the place before going but that would be very extreme.

Your best hope is that either the council or the tenant find somewhere else for her to live before it gets to court.

I'm afraid you've become involved in another case of a greedy LL trying to have their cake and eat it i.e. sell the property whilst collecting rent instead of selling with vacant possession.

franklee

These links are worth a read:
Why do homelessness units tell tenants to wait for a possession order?
http://www.landlordlawblog.co.uk/2010/11/16/why-do-homelessness-units-tell-tenants-to-wait-for-a-possession-order/
http://england.shelter.org.uk/get_advice/homelessness/help_from_the_council_when_homeless/intentional_homelessness

Some councils do gate keeping.

Worst case it could be months. If the paperwork is wrong they may have to start over again. Suggest you ask to see the latest tenancy agreement, the section 21 notice, proof deposit was protected and prescribed information served, possession claim form. Check it's all in order as often the paperwork isn't right.

Check when your mortgage offer expires and can it be extended.

Once the property is vacant inspect it yourself before exchanging contracts.

Ignore the EA they often have little grasp of the law and will just tell you what you want to hear.

BigAunty

HB claimants do definately experience issues with finding onward accommodation, due in part to the reputation they have for being harder to evict....!

Some tenants see eviction as the best way to secure social housing because those who can present themselves as homeless to the council (no security of tenure past the next 28 days) and with dependents get defined as being in priority need for assistance.

In England these days, it doesn't actually guarantee social housing like it did in the past as this obligation was swept away under the Localism Act in Nov 2011 and the local council can discharge its statutory obligations to the homeless by offering a 1 year tenancy. However, many tenants served notice by their landlordsd would probably like to take this gamble in case they do secure the holy grail of a secure social housing tenancy.

The Shelter website's section on homelessness will explain to you how this tenant's application to the council will be assessed, her rights and their responsibilities.

As for the date that she will leave the property, it will depend on whether the council will act before the possession notice is given or at the later stage of when the bailiffs are appointed. Another factor is the waiting time the local courts have to secure the court case for the possession notice when the landlord applies (some courts have a backlog of a month or two or even longer).

Also, if the tenant cites grounds like hardship to persuade the judge to extend her 2 week notice for the possession order to take effect (I believe this can be extended by at least another couple of weeks but do check this).

If she ignores the date she is set to leave on the possession order applies, the landlord has to return back to court to request an appointment for the bailiffs to come, evict her and change the locks. Again, a major factor will be the turnaround time between requesting bailiffs and the bailiffs setting an appointment. This could add another month. There is no further stage pasts the bailiff's visit - end of the road for the tenant.

So this is why it could be anytime between now and about 3/4 months down the road, longer if the S21 is tossed out in court which is fairly common due to paperwork/service issues or the landlord's failure to properly register the deposit in which case, the clock is set back to zero.

Smi1er

OK. Bad news.


She hasn't found anywhere in 8 weeks so is already dragging her feet, most likely she isn't looking but instead asking the council to re house her.


She isn't top priority until homeless and the council will tell her this and tell her only to come back once she has been made homeless.


Vendor will have to go to court to get her out. Bank on 2-3 months.

G_M

Not much to add to the posts above, except a general warning to other house-buyers (too late for you now OP!):

Think long and hard before offering on a property with tenants in occupation.

Think even longer, and harder, before paying out for survey, legals, mortgage application, unless the tenants are actually out.

Never trust an estate agent saying "They've been served notice so no need to worry".

harrys_dad

G_M wrote: »

Never trust an estate agent saying "They've been served notice so no need to worry".

That sentence is too long G_M, it should just say

"Never trust an estate agent".

Fluffi

Thank you all for the helpful replies.

Good point BigAunty about HB finding it more difficult to find a new home - it is a true that a lot of places in this area as "No DSS" and most landlords would choose a private renter over HB so I guess that might be a factor in why its been difficult to find new accommodation.

I'll ask my solicitor about confirming the deposit is held securely, copies of the possession paperwork next week.

I guess I'm looking at a couple of months wait which is frustrating but hopefully be worth it in the end. When I started the buying process it did occur to me that getting the tenant out might be a sticking point. (Had a friend that bought a place occupied by squatters and that was a terrible hassle ). And yes Franklee I'll definitely demand to inspect the flat prior to exchange.

I guess I'll have to be a bit more patient and take up mediation or something.

AnnieO1234

Just to play devils advocate for a moment, as the current occupier is in receipt of housing benefit it may be that she simply doesn't have the funds to pay for a new deposit, tenant checks etc with a new tenancy and social housing therefore may be her only option. Unfortunately some councils will wait until the bailiffs are appointed to actually give someone priority.

Good luck OP. It's a tough one because if you walk away now you might not find something fast and still have all the searches etc to complete. It's a gamble on your part based on how much you love the current potential purchase.

X

dimbo61

Removing squatters is now very easy but not so with tenants.
Can the owner use court appointed officers to use accelerated eviction process to evict quicker.
Your mortgage offer may only last 90 days !!!!!!! Check the paperwork from the lender now ?

[Deleted User]

If the tenant has an awkward council who won't rehouse before a bailiff's notice is served or the bailiff's turn up on the door even, it'll be more than a couple of months. I'd work on 4 months.