Buying a property with existing tenants

the_salmon

Hi all,

At very early stages with girlfriend, have seen a house we like for sale. We actually noticed it earlier in the year when we were looking at rented properties as it was up for rent (bit too expensive for us but we liked the look). We always said we would commence searching for a house to buy in January, though we are starting a week or so earlier and going to view the house next week.

It currently has tenants in until March and they are obviously aware its for sale and that they will be required to move out at the end of their tenancy.

What I am worried about is that its potentially a long time from us viewing in late December to when we could physically exchange and move in to the house in March (would allow time for the house to be cleaned following the tenants exiting the property).

What I am after peoples thoughts on are our expectations or reasonable demands about:

1)The condition of the property. Should we be able to agree a set standard for when we occupy the property (IE should the landlord/owner ensure the house is free of rubbish and has had a thorough clean etc)

2) having an offer accepted: I am aware it can be normal for an offer to be accepted, the purchasers instigate surveys etc and until the exchange of contract run the risk of someone else coming in with a better offer which is then accepted. We can't afford to have our time wasted having an offer accepted with a 3 month gap to exchange date, to have someone come in and bid more. Is there anything that can be done to provide more of a guarantee?

Your thoughts would be appreciated, thanks in advance.

ViolaLass

1. Tenants are not required to move out at the end of their tenancy.

2. No need for a 3 month gap until you exchange. It can be done as soon as surveys etc have been carried out. Completion is the bit that will have to wait.

topdaddy_2

Point one definately. Point two, well I would want the tennants out long before I go and make an offer. If they want to stay eviction is time consuming.

Pete9501

Q1, your solicitor could insist that house is cleaned and rubbish removed etc.

Q2, if you start now it will take 3 months at least to buy even if the house is empty. Your solicitor will need to insist on vacant possession anyway for the mortgage.

the_salmon

Thanks all, I have already asked the question of the estate agents, they have informed me tenants will be leaving. I am not too worried about them and needing to evict them (though if it leads to an offer then I will want it in writing). I am more worried about my expectations of when they leave and the resultant condition of the house and the responsibility to make good falling on the owner.

With regards to point 2, if we exchange is it at that point that nobody else could come in with a better offer and be accepted?

Thanks for your answers folks

fairy_lights

the_salmon wrote: »

Thanks all, I have already asked the question of the estate agents, they have informed me tenants will be leaving.

If you saw this house up for rent earlier this year then the current tenants can't have been living there for very long and might not be at all happy about being asked to move out so soon, especially if they had been expecting a long tenancy.
The estate agents will tell you what you want to hear.

kinger101

You can draw up an anti-gazumping agreement.

45002

the_salmon wrote:

Thanks all, I have already asked the question of the estate agents, they have informed me tenants will be leaving. I am not too worried about them and needing to evict them (though if it leads to an offer then I will want it in writing). I am more worried about my expectations of when they leave and the resultant condition of the house and the responsibility to make good falling on the owner.

With regards to point 2, if we exchange is it at that point that nobody else could come in with a better offer and be accepted?

Thanks for your answers folks

It's not that easy to evict them !

If you buy with Tenant in place you become there landlord

You need to find out exactly how long the tenant has been living there, the date they 1st moved in.

What type of tenancy is it ?

the_salmon

They are on a fixed term agreement which ends on 10th March. I saw the house initially for rent in about May/June of this year, it has only been put up for sale in early September.

These are all extra things I can check at the actual viewing.

But I like the suggestion of an anti-gazumping agreement, I wasn't aware there was such a thing so will look in to that.

kinger101

the_salmon wrote: »

They are on a fixed term agreement which ends on 10th March. I saw the house initially for rent in about May/June of this year, it has only been put up for sale in early September.

These are all extra things I can check at the actual viewing.

But I like the suggestion of an anti-gazumping agreement, I wasn't aware there was such a thing so will look in to that.

The downside of this is a solicitor would need to draw it up. Which goes against the principle of spending anything while the tenants are still in situ.

eddddy

the_salmon wrote: »

I have already asked the question of the estate agents, they have informed me tenants will be leaving. I am not too worried about them and needing to evict them (though if it leads to an offer then I will want it in writing)....

I think you're missing the subtlety of what people are saying.

The vendor may tell the tenants to leave on 10th March, the EA may tell the tenants to leave on 10th March, you may tell the tenants to leave on 10th March - but the tenants might ignore all of you and stay.

It may then take months of legal process and court hearings, before it gets to the point where a bailiff is actually standing on their doorstep escorting them off the premises.

the_salmon wrote: »

I am more worried about my expectations of when they leave and the resultant condition of the house and the responsibility to make good falling on the owner.

If you can clearly express what you want in a written format, your solicitor can request that it form part of the contract.

The problem is, if you just say things like 'It must be left clean and tidy' - there may be arguments because the vendor has a different view of what 'clean and tidy' means from you.