Offering on tenanted property pointers

jtr2803

Hi All,

We are hoping to view a property tomorrow that we are quite likely to want to make an offer on (we lived in a neighbouring property for five years so know the development very well). Whilst chatting with the Estate Agent today she let slip that although advertised as chain free, it is indeed tenanted.

This in itself is not too much of an issue for us, we have an AST on our existing home until mid Feb and whilst I can obviously overlap should things move quickly, in an ideal work we would only need to do this for a short period of time. I am also waiting to realise an asset over the next 4-6 weeks which would top up our deposit etc.

So, besides the obvious issue of notice being given to tenants and the possibility of them not leaving when asked, is there anything else we should keep in mind? I think I am right in saying that the mortgage company won't release funds until it is vacant? In that vein, would we wait until then to have surveys etc done also?

Many thanks

princeofpounds

To be clear, you only want to offer on a tenanted property, you don't want to complete on a tenanted property?

Just be aware that

a) there may be a delay on exchange and/or completion if the tenants are not able to/refuse to move

b) the condition of the property is harder to guarantee on completion relative to viewings.

Personally, I would insist on exchange only taking place when the property is vacant. I would be happy to spend money on a surveyor assuming their ability to access the property is confirmed by the tenants.

G_M

I would not [STRIKE]waste[/STRIKE] spend money on survey, legal fees, mortgage application etc until the tenants have actually left and I've personally confirmed they are gone.

And if/when making an offer, I would make that clear to the seller.

I would also probobly continue to view properties till the tenancy has ended, despite having made that offer.

Bantex_2

Does it not make you feel bad, throwing people out of their home?

jtr2803

Thanks PoP & GM. EA has said tenants are being flexible but they would say that wouldn't they! I will see how things are when we view tomorrow. There are two other flats in the same development that are up for sale, one that we most likely will view and we will definitely keep an eye out for anymore that come on in the mean time.

The EA didn't seem to be most clued up on the process so it will be nice to be armed with info tomorrow, it's a good haggling point too!

somethingcorporate

Bantex wrote: »

Does it not make you feel bad, throwing people out of their home?

Who? the OP or the LL looking to sell?

It is (in my humble opinion as an amateur LL) not very respectful to anyone for a LL to keep tenants in the property whilst it is up for sale.

jtr2803

Bantex wrote: »

Does it not make you feel bad, throwing people out of their home?

somethingcorporate wrote: »

Who? the OP or the LL looking to sell?

It is (in my humble opinion as an amateur LL) not very respectful to anyone for a LL to keep tenants in the property whilst it is up for sale.

Whether the landlord is, or is not, acting respectfully, is not my issue. Not one of us knows the circumstances behind the sale but must presume the tenants are well aware it is being marketed. I've been on the receiving end of a section 21 after living in a property on same development for five years, it's upsetting sometimes but unfortunately, part of the world of renting.

What's to say they weren't given first refusal anyway?

Yorkie1

jtr2803 wrote: »

Whether the landlord is, or is not, acting respectfully, is not my issue. Not one of us knows the circumstances behind the sale but must presume the tenants are well aware it is being marketed. I've been on the receiving end of a section 21 after living in a property on same development for five years, it's upsetting sometimes but unfortunately, part of the world of renting.

What's to say they weren't given first refusal anyway?

You say that, but when I rented a property some years ago now (when I knew nothing about tenants' rights etc), we'd just started a fresh AST (2 tenants had changed), and came home from work one Monday to find a For Sale sign in the garden and a phone message from the LL saying that there was a viewing that evening which we had to tidy the house for :eek:

(This LL had a habit of letting himself into the house unannounced, and would leave us snide notes about dusting the stairs' skirting boards - whereas this time he'd clearly gone one better and let himself in with EAs to get a quote and then to measure up).

jtr2803

Yorkie1 wrote: »

You say that, but when I rented a property some years ago now (when I knew nothing about tenants' rights etc), we'd just started a fresh AST (2 tenants had changed), and came home from work one Monday to find a For Sale sign in the garden and a phone message from the LL saying that there was a viewing that evening which we had to tidy the house for :eek:

(This LL had a habit of letting himself into the house unannounced, and would leave us snide notes about dusting the stairs' skirting boards - whereas this time he'd clearly gone one better and let himself in with EAs to get a quote and then to measure up).

Well, its been on the market almost two months so whether they are happy about it or not, I would expect they know. I guess we may find out how they feel about it during the viewing if they are there.

Yorkie1

After 2 months, it's probably a fair assumption, I grant you!

dirty_magic

Why should they feel bad? The house is up for sale, they like it and want to make an offer.

As a tenant you have to accept that it's not actually your house and the situation could change. Maybe the landlord needs the money! The tenants will find somewhere else to live.