Buyer wants vacant possession before exchanging

ognum

Jasmine_10 wrote: »

Hi
We recently put our flat on the market and it is tenanted. It went under offer within about 3 days.
We were very pleased but the buyer is saying we must secure vacant possession before contracts are exchanged. Notice is 2 months and we are reluctant to do this as the buyer could withdraw their offer between now and the New Year.
We would have to put another tenant in and put off the sale until next year when our lease would drop to 81 years.
Our tenant has been reliable and amenable and we have (probably mistakenly) told him we wouldn't be serving him notice until we'd exchanged contracts.
Does anyone know what might happen if our tenant decides to be awkward and we can't get him out? Would the buyer be able to sue for breach of contract?
I'll be seeing our solicitor next week but would like to know if anyone else has been in this position? What did you do?
Thanks.

Most buyers would require the property to be vacant on exchange and would want to visit the property themselves to check. Many people will not start the purchase without vacant possession.

If you wanted to keep your tenants in situ you should have found a landlord to sell to.

davidmcn

emmatthews wrote: »

It may also be a requirement of the mortgage lender. I thought they insisted upon a property being vacant at time of completion but it may be exchange, I'm sure someone will be along shortly that will know.

The lender only cares about what the situation is at completion, they won't care what happens before then - their money isn't at risk at exchange.

BarryBlue

I am in the same situation but as the buyer. I am buying the property to let though. The seller has served the current tenant a notice and she has already delayed her departure from early October until early December. We are able to proceed immediately as it is a cash purchase but I have said I will not exchange until she has gone and the property is inspected post-tenancy and I have seen that it is as it should be.

I am not desperate to complete but anticipate exchanging and completing on the same day when everything is ready to go. Then I can get a quick decorative makeover and my agent can find the new tenant. If there is any delay in the current tenant vacating, there will be no exchange.

savingfortomorrow

if i was your buyer i would insist on you starting extending the lease processing before exchange, before the drop to 80 years. if you offered to initate this it could be a bit of a bargaining tool as it will be more costly for them to extend the lease.

even if this sale falls through is it better to have a faster sale than a month or two rent with the potential for a tenant stay put, forcing eviction processes. a small loss for a greater gain?

PasturesNew

Jasmine_10 wrote: »

our estate agent prior to marketing said you don't usually serve notice until exchange.

He's desperate for his commission and talking round dangly things.

Guest101

All i can say is poor tenant.

First his or her home is sold, then they're promised something by their LL (which is totally unrealitic) and now they're being messed about.

Nithaa

We're buying a property which has a tenant in (we are buying to live in not rent out) our mortgage offer stipulated tenant must vacate before exchange and a copy of the notice must be provided to the solicitor as proof. In addition to this we would not want to exchange before the tenant was out anyway, we don't want the risk of ending up homeless ourselves because we can't access the property on completion.

Your buyer is right to be cautious.

Prothet_of_Doom

Jasmine_10 wrote: »

Thanks for all of your very useful replies - it really helps to get another perspective.

What I should have added is that our estate agent prior to marketing said you don't usually serve notice until exchange.
The buyer doesn't require a mortgage as she is downsizing.

Some Estate agents are worse than used car dealers.

Prothet_of_Doom

BarryBlue wrote: »

I am in the same situation but as the buyer. I am buying the property to let though. The seller has served the current tenant a notice and she has already delayed her departure from early October until early December. We are able to proceed immediately as it is a cash purchase but I have said I will not exchange until she has gone and the property is inspected post-tenancy and I have seen that it is as it should be.

I am not desperate to complete but anticipate exchanging and completing on the same day when everything is ready to go. Then I can get a quick decorative makeover and my agent can find the new tenant. If there is any delay in the current tenant vacating, there will be no exchange.

What is wrong with keeping the old tenant ?

[Deleted User]

I agree. If you wanted to live in the property, that's different but if you want to put a tenant in the property, I don't really see why you are insisting on vacant possession. Unless the tenant is not a good one? Must like paying agency fees and well, won't go into what tenant is going through (who you are planning to replace it seems).