Buying house with tenant in

Bloodymary

hi there

I'm hoping to get some advice and see if anyone has experience with similar situation.

We are buying a house which has tenants living in. Their notice period ends on the 30th of May, also the seller has fixed term on the mortgage of the house which ends on the 1st of June and they don't want to complete before that otherwise they would have to pay early repayment charges.

On top of all this the flat we live in has also been sold and our notice ends on the 10th of May and we were considering our options...we either sit tight and refuse to leave until we are ready to complete or find temporary accommodation and pay twice for moving and storage ...

Then yesterday we went to see the house again and had a chat with the tenants - it turns out they are keen to vacate the property as soon as possible as they have another place to live in, we are keen to move as soon as possible and I guess the only thing stopping us is the sellers' mortgage situation.

We were wondering if we could ask the seller to release the tenants from their notice period and once they've left we could exchange and pay the 10% deposit (all contract stuff is ready to be signed) and move into the house. We are happy to pay "rent" for the time between moving in and completing on the sale.

Has anyone has similar experience... would something like this possible at all?

thanks in advance

regards,
Mary

anselld

Your solicitor would probably stop you from exchanging until tenants have left.
The vendors solicitor would probably stop you from occupying until completion, even if paying rent.
I think sit tight or temp accom are your only viable options.

Pixie5740

Don't spend any further money on purchasing this property until it's vacant. You've become involved with a greedy LL trying to have their cake and eat it. The LL wants to continue collecting rent to the last gasp when they ought to be selling with vacant possession.

NB Not all landlords are greedy !!!!!!!s.

franklee

Bloodymary wrote: »

On top of all this the flat we live in has also been sold and our notice ends on the 10th of May

What do you mean by your notice? I hope you haven't served notice as if so holding over isn't a great idea. If OTOH you mean you've been served a section 21 notice then I'd be staying put. If you're not leaving on the S21 date be sure to either serve your own notice or agree a surrender date with your landlord, or if at the end of a fixed term you can leave without notice.

Are you sure the flat you live in has been sold? Usually contacts aren't exchanged until there is vacant possession. Unless another landlord is buying it?

Suggest you stay put and get your purchase exchanged. Exchange only after the tenants have left and you have inspected the property. Your landlord will be wanting you gone for his sale so if he has any sense will be open to negotiating a reasonable date for you to leave. Suggest asking him about it now.

Pixie5740 wrote: »

Don't spend any further money on purchasing this property until it's vacant. You've become involved with a greedy LL trying to have their cake and eat it. The LL wants to continue collecting rent to the last gasp when they ought to be selling with vacant possession.

Agreed. This time it's two landlords as the OP's LL and his vendor are both doing the same.

G_M

our notice ends on the 10th of May

You gave notice or you received notice? Big difference! Huge!
If you gave notice, and fail to move out, the LL can make you pay double rent.
If the LL gave you notice and you fail to move out, nothing happens. You consinue o pay rent and LL has to decide whether to wait for you to leave, or go to court.

Only a mad seller would let you move in before Completion. If he rents to you after Exchange, he becomes a landlord, with multiple liabilities. And you get tenancy security for 6 months....

Bloodymary

Thanks for all the comments guys.

To clarify - we are tenants in a flat that has been sold. We were given section 21b (I think) notice that ends on the 10 of May. We are in the process of purchasing a house which has tenants living in it. they on the other hand have their own property which they used to rent out but it's now vacant and are keen to move back.

The seller of the house we are buying has given section 21 to the tenants which ends on the 30th of May. I wouldn't say he's greedy - it's just that we got mortgage, searches and contracts papers ready within a month and were hoping to move as quick as possible.

I spoke to both our solicitor today and the EA and they will discuss this with the seller and see if he agrees to release the tenants to leave early and we could move in and pay "rent" until the completion date. Obviously the solicitors will have to put something legally binding in the contract but we really hope the Seller would agree which will make both us and the tenants happy.

I'm really hopeful since they didn't say it's out of the question straight away so fingers crossed...

It's a bit odd that we haven't heard from the EA who is in charge of selling the flat we live in. We had a surveyer come in to evaluate the flat in early February and the section 21 arrived in the post on the 10th of March, we haven't heard anything from them since...

thanks again
Mary

G_M

I don't see the problem.

You want to move in to house you are buying, on 10th May.
Seller wants to sell the house - presumably asap but with no reason to wait, except tenants.
Tenants in the house want to move out, and can do so anytime as they have an empty property waiting.

Everyone wants the same thing! Communication.....?

If this fails, you contact your landlord and say "I'm Completing on my purchase on, I think, 30th May, so will be movin out then. I hope that's not too much of a problem."

He'll either say :
"no problem", or
"That's a hastle, but that's life - perhaps I was rash to try to sell my house while I still had tenants". or
He'll go to court which will take till way past 30th May.

getmore4less

G_M wrote: »

I don't see the problem.
..............

The problem is the ERC on the mortgage not the tenant.

getmore4less

The simple solution would have been to have a quiet word with the Tenant, they move there stuff out to there other place, you lend the tenants your stuff and you become the tenants house guests(after exchange).

G_M

getmore4less wrote: »

The problem is the ERC on the mortgage not the tenant.

Sorry. Yes.

Bloodymary

G_M wrote: »

Sorry. Yes.

I assume the ERC only applies if we complete before 1st of June and not if we exchange prior to their fixed term ends?