Investors Only?

Landofwood

Palmer Park Avenue, Reading, RG6
http://www.rightmove.co.uk/property-for-sale/property-51586624.html

I thought this was quite interesting in that they are stipulating "investors only". I assume they are allowed to sell to whomever they wish, but what's to stop someone buying the property and then immediately issuing a section 21 to the sitting tenants?

Seems unenforceable.

davidmcn

Landofwood wrote: »

Palmer Park Avenue, Reading, RG6
http://www.rightmove.co.uk/property-for-sale/property-51586624.html

I thought this was quite interesting in that they are stipulating "investors only". I assume they are allowed to sell to whomever they wish, but what's to stop someone buying the property and then immediately issuing a section 21 to the sitting tenants?

Seems unenforceable.

It's not mean to be "enforceable", it's just a helpful indication that it's being sold with tenants in occupation, and therefore anyone wanting to immediately move in as an owner-occupier (or to use a mortgage product which requires vacant possession) should look elsewhere.

Landofwood

davidmcn wrote: »

It's not mean to be "enforceable", it's just a helpful indication that it's being sold with tenants in occupation, and therefore anyone wanting to immediately move in as an owner-occupier (or to use a mortgage product which requires vacant possession) should look elsewhere.

In that case I would be furious with my EA for scaring off potential buyers. Some "non-investor" buyers may be perfectly happy to purchase a property and accept the risks associated with sitting tenants. "Investors Only" is not a helpful indication at all.

WestonDave

I suspect given it was first listed in September 2015 that they actually mean its under contract until July 2016 and therefore would be unsuitable for anyone requiring vacant possession to live in it. Obviously if you are buying for cash and have somewhere to live until next summer then fill your boots but you won't get a home buyer mortgage on a property that won't have vacant possession on completion (assuming the seller wants a reasonably prompt sale).

G_M

Landofwood wrote: »

.....what's to stop someone buying the property and then immediately issuing a section 21 to the sitting tenants?

1) If they are 'sitting tenants' they are almost impossible to evict, and cerainly not via a S21
2) if they are AST tenants, the timescale depends whether they have a fixed term or periodic tenancy
3) if the buyer needs a mortgage, it would have to be a BTL mortgage, not residential
4) tenants can take between 3 and 9 months to evict (or longer if in a fixed term contract)
5) the buyer would need to comply with ALL landlord leglislation, rules, tax, insurance etc

Otherwise.... no problem!

kinger101

Landofwood wrote: »

In that case I would be furious with my EA for scaring off potential buyers.

You don't know what discussion has taken place with the vendor and the EA, so I wouldn't jump to conclusions.

davidmcn

Landofwood wrote: »

In that case I would be furious with my EA for scaring off potential buyers. Some "non-investor" buyers may be perfectly happy to purchase a property and accept the risks associated with sitting tenants. "Investors Only" is not a helpful indication at all.

I think purchasers sophisticated enough to contemplate such a course of action will understand what the listing means.

HappyMJ

Landofwood wrote: »

In that case I would be furious with my EA for scaring off potential buyers. Some "non-investor" buyers may be perfectly happy to purchase a property and accept the risks associated with sitting tenants. "Investors Only" is not a helpful indication at all.

Anybody buying that house could not buy it with a standard residential mortgage for owner occupiers.

Maybe the tenants are assured tenants and cannot be evicted easily if at all.

Landofwood

G_M wrote: »

1) If they are 'sitting tenants' they are almost impossible to evict, and cerainly not via a S21
2) if they are AST tenants, the timescale depends whether they have a fixed term or periodic tenancy
3) if the buyer needs a mortgage, it would have to be a BTL mortgage, not residential
4) tenants can take between 3 and 9 months to evict (or longer if in a fixed term contract)
5) the buyer would need to comply with ALL landlord leglislation, rules, tax, insurance etc

Otherwise.... no problem!

https://en.m.wikipedia.org/wiki/Sitting_tenant

There are 2 meanings of sitting tenant. My use was correct.

Landofwood

HappyMJ wrote: »

Anybody buying that house could not buy it with a standard residential mortgage for owner occupiers.

Maybe the tenants are assured tenants and cannot be evicted easily if at all.

Makes sense!

DandelionPatrol

Landofwood wrote: »

https://en.m.wikipedia.org/wiki/Sitting_tenant

There are 2 meanings of sitting tenant. My use was correct.

Sitting tenants is the informal term for protected tenants, because they cannot be dislodged. Obviously, there as been some drift in terminology if you regard the eminently dislodgeable AST tenants as 'sitting'.

You are entitled to consider your use of the term as correct, but you must remember that there are other conflicting definitions which are also correct and probably more so.