buying with a sitting tenant

Old_Git

I am interested in a flat that has come on the market .Their is a sitting tenant. It is advertised as
The property currently has a tenant however there is no current lease in place and we have been advised by our sister company that a property of this size in the area could achieve a rental income of £xxx PCM.

What are the downsides to buying a place with a sitting tenant .
Is it mortagable with a sitting tenant .

fed_up_and_stressed

You would need a buy to let mortgage i imagine, as most residential mortgages insist on vacant completion and the property is to used for living in by the mortgagee

anselld

You need to establish the status of the tenant. They are presumably paying rent and have some tenure, hence the phrase "no current lease" is meaningless.
How long has the T been there and on what terms?
How much rent are they paying?
Any deposit secured?
What is the chance of persuading the T to pay market rent? (Do you even believe the market rent suggested - do your own research!)
If not what notice required and are you prepared to evict and re-market.

kinger101

The pitfalls of this comes up every week. Getting the tenants out can take months. The start of the process is issuing a correct S21 notice. When the 2 months notice expires, they might leave, or they might not. In which case it will be another 3-4 months before they are finally legally evicted.

They might leave of their own volition as the LL is selling, which can be quicker than properties with an onward chain.

But in the meantime, it would be unwise to spend any money on legals and surveys.

Perhaps the property is being marketed at other LL, but many prefer to select their own tenants (it is afterall the largest risk in renting out properties).

Mallotum_X

Are you buying to rent out or buying to live in

AdrianC

There is only one simple question to consider.

Would YOU let the property to THAT tenant on THOSE terms, rent included?

If not, then you need to consider the cost and timescale of evicting them, before you can do what you want to do with the property.

andybenw

If this is a true 'sitting tenant' pre AST agreements, you will find them impossible to remove. They will have a secure tenure.

If this is what 'no current lease' arrangement means then the agent is being rather economical with the truth. Such properties are worth far less than those bought with vacant possession or a current AST tenant.

If you are unaware of what I am talking about(and I am no expert) then you would be advised to stay at a length further than a bargepole as the pitfall is huge if you get it wrong.

benjus

The phrase "sitting tenant" can have 2 meanings:

• A general meaning: any tenant who is already in occupation of a property when ownership changes.
• A specific meaning: a tenant whose tenure is protected under the Rent Act 1977. Such tenants can be almost impossible to evict.

Which is the case here? It's important to know this...

Pixie5740

I think Old Git is in Northern Ireland where housing law if different to England & Wales.

theartfullodger

Pixie5740 wrote: »

I think Old Git is in Northern Ireland where housing law if different to England & Wales.

If so old git, beware....

https://www.citizensadvice.org.uk/nireland/housing/renting-a-home/renting-from-a-private-landlord-ni/#h-types-of-private-tenancies

Protected tenancies

If your tenancy is a private tenancy which began before 1 April 2007 you may be a protected tenant.

Protected tenancies have their rents controlled by legislation. No new protected tenancies can be created but if you had a protected tenancy before 1 April 2007 your protection will continue as long as you occupy the property

Ask the tenant (TENANT! - not vendor, not selling agent, not vendor's solicitor ask the tenant) when they first moved in...