Vendors, not buyer, want to exchange with tenant in situ

morreau

I tend to agree. I have decided to proceed as before and exchange after tenants vacated. I am treating it as business transaction and trying to leave the emotion out of it.

maninthestreet wrote: »

Presumably you have applied for a residential mortgage for this property, so will have immediately breached your mortgage T+Cs at completion, as you will have a tenant living in the property??

I imagine that would only be the case if I completed. Which wouldn't happen.

Thanks

morreau

fairy_lights wrote: »

What?! Their relationship with their tenant is so important to them that they're willing to jeopardise a house sale rather than serve notice? is the tenant even aware that it's not being sold as a buy to let and that they will need to leave?

I think they have asked my solicitor the question without actually thinking I'd agree to it. I was just a bit bemused by it.

Pixie5740

Presumably you've shown you are committed to this sale by applying for a mortgage and having a survey carried out. It's now time for the vendor to show that they are committed by serving notice to the tenant instead of wasting time asking you to exchange before the tenants have vacated.

It probably has SFA with trying to maintain a good relationship with the tenant and everything to do with trying to continue receiving rent right up to completion.

In your shoes I would start looking at other properties although I wouldn't tell the vendor.

tea-bag

It might be a issue with getting papers signed as well, My solicitors insisted anybody over 18 had to sign a disclaimer saying they would vacate my father and daughter, Cost a extra £150

I agree with all others here, Unless it is a buy to let Vacant all the way, It can take months to get people out of a property if they don't want to leave.

Ulfar

tea-bag wrote: »

It might be a issue with getting papers signed as well, My solicitors insisted anybody over 18 had to sign a disclaimer saying they would vacate my father and daughter, Cost a extra £150

I agree with all others here, Unless it is a buy to let Vacant all the way, It can take months to get people out of a property if they don't want to leave.

There is a whole world of difference between a permitted occupier, which is what you are talking about and a tenant.

The vendor sounds like a nightmare, I cannot believe that the OP's solicitor would countenance this, they will be aware under what terms they will be requesting the money from the lender. The solicitor would be leaving themselves open to misconduct if they allowed to the transaction to complete under these circumstances.

45002

morreau wrote:

Hi all,

I have read plenty on here urging the buyer not to exchange before tenants have vacated. I assumed both parties would have wanted to wait until tenants have vacated.

However today I was informed that vendors are keen to exchange before Vacant possession. I am in no chain and relatively easy about move in date and have alternative accomodation if required. I am told the tenants and vendors hae good relationship. I have also met tenants during viewings and have no reason to suspect they would pose a problem

I am inclined to agree to move things forward but have written in contract that condition must be as per survey and fixtures and fittings.

I assume I can walk away if tenants overstay as Vendors will have broken contract. I will have 4 months on mortgage offer by agreed completion.

Is there anything I am missing? The risk seems all with vendor

Yes.

Do you know the exact date the tenant 1st moved in

You never know they could be a sitting tenant !

Hoploz

Have you told them you're not doing it yet?

morreau

I have instructed my solicitor to do so. I'll let you when I hear. Cheers for the help.

Annie1960

eddddy wrote: »

A couple of extra thoughts...

If you do go down this route, and the tenant doesn't move out... rather than having to quantify your losses, you could ask for a penalty clause in the contract - e.g. the vendor has to pay £1k per week until the tenant moves out. (And after 6 weeks, the contract becomes void and the vendor has to pay you a flat £5k to cover your costs.)

And I would be thinking to myself "If I do the vendor a favour, by minimising their void period - what should I ask for in return?".

Good idea, and you should ask that the vendor lodges the £5k with their solicitor prior to exchange.

45002

45002 wrote: »

Yes.

Do you know the exact date the tenant 1st moved in

You never know they could be a sitting tenant !

morreau.

Could you asnwer the above, thank you.

morreau wrote:

I have instructed my solicitor to do so. I'll let you when I hear. Cheers for the help.

If the tenant decides not to leave of there own free will and vendor has to serve nqt on the tenant, court action so on.

It could be 4/5/6 months even longer before the property is Vacant, that's if the tenant has a AST.