Buying a property that is currently tenanted

[Deleted User]

Have just had an offer accepted on a flat that is currently tenanted. They are going to give her two months’ notice, and don’t anticipate any issues as she is no longer in a fixed term contract. I have asked to see the written notice that she is served, with confirmation of the date she has agreed to go, and have told them that exchange will be subject to vacant possession, which the seller has agreed to. We will check that she has left ourselves after she has meant to.

Is there anything else we need to be doing to ensure we cover ourselves?

nomoneytoday

I'd be relunctant to spend any money until the tenants are out..

[Deleted User]

Even if it (for some reason) took six months to get her out, we'd still want the property so we're going to exchange when we can to ensure we get the property at that price- where we're looking the market moves so quickly that property is, on average, £50k+ more than it was when we started looking 8 months ago. So spending money before she's out isn't an issue.

SeduLOUs

And what if there's a big fallout, and the tenant absolutely trashes everything in the place during the several months it takes to get a court order to evict?

G_M

if you're happy to wait, and happy to spend money that might get written off, you're fine. As long as

* you do not Exchange Contracts till you've personally checked
a) the tenants have left and
b) the tenancy has ended (not always the same thing.... they might come back.....)

* you understand that if it takes (your wise words!) "6 months" before they leave, you cannot exchange for 6 months. And the vendors might then increase the price (if the market has changed)

[Deleted User]

We intend to exchange prior to them vacating, knowing full well the risks involved. We met the tenant and she seems nice and normal and the flat is kept in good order- we are tenants ourselves and I know people who work for landlords and letting agencies so I believe most tenants to be of the normal co-operative variety like we are, and have no reason to suspect she is otherwise. I just wanted to check whether we'd done everything we could in terms of asking for information, in the scenario where we intend to exchange as soon as possible, which it seems like we have done. So thank you.

G_M

Are you getting a mortgage or paying cash?

A mortgage lender will not permit you to exchange before the tenants have left - for obvious reasons (see the other thread I linked you to!). If you are getting a mortgage, discuss this with your lender's solicitor.

Have you checked whether the tenants have an AST or an Assured Tenancy?
Have you seen and checked the notice served? Does it show correct dates?
Do you know if a deposit was paid, and if so, whether/when it was protected? And whether the PI was served?

All the above could affect the validity of the notice.

However 'nice' the tenants seem/are, if their onward move falls through they may stay, through no fault of their own.

With a purchase as large as this, you are unwise to take things in trust.

But end of the day, it's your choice.

[Deleted User]

I was under the impression we could exchange subject to vacant possession but not complete, is this not the case?

As I said in my OP I have asked to see the notice that was served with the dates. I will be sure to ask the other points, thank you.

G_M

[Deleted User] wrote:

I was under the impression we could exchange subject to vacant possession but not complete, is this not the case?

If you are paying cash, you can do whatever you like, since the risks are entirely yours.

If you are getting a mortgage, discuss this with the lender's solicitor and see what they say.

Are you doing your own conveyancing? If not, your solicior shoul be explaining all this to you.

If you are, I wonder if you should be...

[Deleted User]

We will be getting a mortgage. I know people who have had a mortgage, been in this situation, and exchanged subject to vacant possession before the tenants left, but I will check our lender allows this.

franklee

Living in a property while still legally entitled to is nice and normal. If you exchange soon with the tenant still there what completion date will be chosen given you won't know for sure the tenant's leaving date?

If you can afford to wait, if your mortgage allows it and if your mortgage offer doesn't run out then the main risks fall on the seller if he cannot provide a vacant property on completions day. Have a plan for what happens in this case. Obviously explain the tenant's situation to your solicitor.