Buying house with tenant in

Yorkie1

Bloodymary wrote: »

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

I think so, but you would be a fool to do this even if your solicitor allows it.

Irrespective of whatever may have been said / promised, you should never exchange unless and until the tenants are physically out of the property and you have checked its condition.

Bloodymary

We would not exchange until the tenants are out. The idea is that they move out early (should the LL allow it), then we inspect the property and if we are happy with the condition we will exchange (pay the 10% deposit) then move in and pay rent from the date we have moved in until the completion date.

PasturesNew

On the basis the argument's going nowhere.... it's "early season" so worthwhile contacting holiday lets/caravans/agents and seeing if somebody'll rent you a flat/caravan for a month at a good price to bridge you between the two.

Pixie5740

If the tenants have somewhere else already lined up could you not ask the vendor to arrange an early surrender. That way the tenants move out, and then you can exchange.

G_M

Bloodymary wrote: »

We would not exchange until the tenants are out. The idea is that they move out early (should the LL allow it), then we inspect the property and if we are happy with the condition we will exchange (pay the 10% deposit) then move in and pay rent from the date we have moved in until the completion date.

I still doubt the seller would agree to rent to you, or allow you in, between Exchange and Completion.

Yorkie1

Bloodymary wrote: »

We would not exchange until the tenants are out. The idea is that they move out early (should the LL allow it), then we inspect the property and if we are happy with the condition we will exchange (pay the 10% deposit) then move in and pay rent from the date we have moved in until the completion date.

This is, in reality, a complete non-starter of an idea.

Once you pay rent, the seller is a LL. They have to get a gas safety certificate, comply with all the legal duties and responsibilities that come with being a LL, and if anything goes wrong then they can't evict you for 6 months. Their solicitor would read them riot act very loudly if they suggested it.

I know you're desperate to get this sorted out, but if the seller won't release the tenants from their tenancy early by way of mutual surrender then you have no choice but to wait. This is a prime example of the seller / LL wanting to have their cake and eat it in many ways, and you're the person (other than the tenant) who is affected.

You can exchange and complete within the space of days once the tenants are gone, but do not try any unusual manoeuvres before then as the risk of backfiring is far too great.

dancingfairy

I would stay put where you are now (presuming it hasn't gone through the courts and it's just a standard notice to quit you've received).
Wait until the tenants are gone at your new place then exchange and the complete. You can't do anything until the tenants are gone as your solicitor will probably not let you exchange until they are sure you are getting vacant possession. If you want to exchange and complete early then I guess you'd need to know what the Early redemption fee for the buyers mortgage is and come to some sort of arrangement.
df

[Deleted User]

Am I the only one to see the obvious (or am I completely thick?). If the OP's landlord has served a S21 to leave their rented property on 31st of May.., why can't they say to the LL we need another month.., and then just stay until the house they are buying is available? The LL can't get the S21 actioned until a court date is available so the OP has two or three months before they absolutely have to move out of their rented property. Hopefully plenty of time for the property they are buying to be exchanged upon etc.

Then no worries about who lives where, the legalities of renting the place they want to buy etc etc . Their LL may be a bit unhappy but that's what you get for selling a house with tenants in situ (in this case).

kiddy_guy

Ahh, but that assumes that the tenants of the house the OP is purchasing actually do move out. What happens if one of them falls ill, redundant, decides they don't want to move etc...

If they delay the OP is delayed.

Pixie5740

deannatrois wrote: »

Am I the only one to see the obvious (or am I completely thick?). If the OP's landlord has served a S21 to leave their rented property on 31st of May.., why can't they say to the LL we need another month.., and then just stay until the house they are buying is available? The LL can't get the S21 actioned until a court date is available so the OP has two or three months before they absolutely have to move out of their rented property. Hopefully plenty of time for the property they are buying to be exchanged upon etc.

Then no worries about who lives where, the legalities of renting the place they want to buy etc etc . Their LL may be a bit unhappy but that's what you get for selling a house with tenants in situ (in this case).

Both Franklee and GM have suggested that the OP stays in the property after the section 21 has expired if needs be. You're quite right in that if that happens the LL has nobody to blame but themselves for trying to sell a property with tenants in-situ.

Equally though the LL of the property the OP is buying could come to some agreement with their Ts since those Ts already have somewhere else lined up.

As GM says, a little communication and this could all be sorted out quite easily. It's just unfortunate that the OP is the jam in a greedy LL sandwich.