Buying a flat with tenants in

ButterflySteps

Hi

I'm currently looking at a flat that's on sale. It's currently occupied by tenants, with the tenancy contract expiring in October. Does this mean exchange of contract can't take place till the tenants have vacated the flat? I'm concerned about the length of time this takes assuming they stay in till end of the contract, as the seller might change his mind and pull out. Just wondered if it means the seller has till October to change his mind?

Foxy-Stoat_3

No solicitor will advise that you exchange contracts until the vendor has vacant possession. If they do then you need to find different solicitors!

If the seller has not issued a Section 21/8 and been granted possession then look elsewhere as too much can happen in 5 months. If the tenants choses to, they could stay well beyond October and could trash the flat before they leave.

Guest101

ButterflySteps wrote: »

Hi

I'm currently looking at a flat that's on sale. It's currently occupied by tenants, with the tenancy contract expiring in October. Does this mean exchange of contract can't take place till the tenants have vacated the flat? I'm concerned about the length of time this takes assuming they stay in till end of the contract, as the seller might change his mind and pull out. Just wondered if it means the seller has till October to change his mind?

Assume they will stay well past October, probably closer to the new year.

Of course the seller can buy out his tenants if he really wants to sell...

G_M

Do not exchange till the tenants have left.

There is no guarantee they will leave when the tenancy contract ends in October - they do not have to.

I would not even spend money on the purchase (searches, survey, legals mortgage application etc) till the tenants have left.......

benjus

Not that I'm suggesting doing so, I'd have thought that most of the risk of exchanging contracts before the tenants have left would be on the vendor rather than the buyer. Although I'm not sure what would happen to the buyer's mortgage if the vendor failed to complete on the agreed date and completion was delayed.

jimjames

ButterflySteps wrote: »

Hi

I'm currently looking at a flat that's on sale. It's currently occupied by tenants, with the tenancy contract expiring in October. Does this mean exchange of contract can't take place till the tenants have vacated the flat? I'm concerned about the length of time this takes assuming they stay in till end of the contract, as the seller might change his mind and pull out. Just wondered if it means the seller has till October to change his mind?

Is it being sold as an investment property or are you wanting to live in it? Existing tenants might not be a problem on a BTL mortgage.

G_M

benjus wrote: »

Not that I'm suggesting doing so, I'd have thought that most of the risk of exchanging contracts before the tenants have left would be on the vendor rather than the buyer. Although I'm not sure what would happen to the buyer's mortgage if the vendor failed to complete on the agreed date and completion was delayed.

Yes - the legal risk is on the seller.

The financial risk is also on the seller, though if he disappears/goes bankrupt etc, the buyer could be left with financial losses.

But most importantly there are practical risks on the buyer: the inconvenience (if not homelessness?) that arises when a purchase fails to complete. The impact on the buyer' life can be considerable.

ButterflySteps

I'm buying to live in it.

I think I might pass on this property then, plenty more fishes in the sea. I want it done and dusted before October. Thanks for the replies.

AdrianC

Do you want to buy the place to live in, or to rent out?

October is the earliest those tenants can be asked to leave the property. They might not do so - and it can take months to evict them.