Buying a tenanted house from a landlord to move into.

GKIM

Hi Folks,

I'm after a little advice please.

My partner and I are buying a house from a family friend. We have had the survey done, got the mortgage offer and filled out all of the initial paperwork for each of our conveyancers..

The house is privately rented at the moment and the tenant's lease expired at the end of April. I emailed the seller on 2/5 to ask if we could go and measure up (and because I wanted to make sure they had gone!) and he replied saying that the tenants were waiting for him to tell them when to move out and asked if I had any idea of a completion date.

I know we cannot complete without vacant posession as it will be stipulated in our contracts - but am I within my rights to ask that the tenants move out before we even exchange?

The tenants are apparently moving back in with their parents but I am just verrrry nervous that it could all go wrong if they refuse to move out!

hazyjo

I'd definitely want them out before exchange. Say you want to check before exchange, then agree to complete within a day or two (or longer) - whatever suits.


You'll be up XXXX creek if they're still there after completion.


Jx

Cakeguts

The tenants have to be given 2 months notice to leave the property. Then they do not have to go they can wait until they are evicted through the courts. This could take several months.

There is no point in you trying to go in and measure up the house now. You may not get possession of it for several months.

Do not exchange on this house until it is vacant. It is up to the landlord to give you an estimate as to when he thinks the house will be vacant not for you to give a completion date.

It sounds as if the family friend is about to become an ex family friend.

AnotherJoe

They need to be out before exchange, not completion.

Your friends is being [STRIKE]cheap[/STRIKE] budget conscious but things could go horribly wrong (for both of you) if the tenants refuse to move. You need them out and locks changed before exchange.

Then you go and check they are really out, what state its in, suppose the tenants take umbrage and trash the place? Would you still pay what you previously offered? What if they wont go? It could take nearly a year to get them out through the courts.

By hanging on to the tenants rental income to the last minute your friend is endangering the sale. Make sure he's clear on the fact that the tenants need to be out.

If you dont want to make it personal, blame your solicitor and mortgage company, state that they require vacant possession before exchange. Don't budge on this.

saajan_12

Technically it is the vendor's problem for failing to give you vacant possession if the tenant's don't leave. However I would still want to ensure the property is vacanat before exchanging - what if the tenants do leave the just in time but leave damage.. you'd be committed to buying. What if they leave a couple of days after completion by which time your solicitor has sent back your mortgage funds..

Ask the vendors confirm when the tenants have left - they may be on good terms and be able to agree a mutual surrender in a a relatively short time, or they might need to serve notice, apply for court possession, wait for bailiffs so all in 4+ months. This might be too long making everything fall through, so by all means if the landlord and tenants are happy to give you access to measure up, but don't go buying furniture/floorings/curtains/kitchens etc until you've exchanged and are locked in.

Once the LL confirms they are out, you go for one more viewing to check the tenants have left and the property is in the same condition you expected and ONLY THEN you should exchange. You can set a fairly short time to completion if the vendors don't want to lose too much rent and you can manage that (e.g. giving notice where you are, getting removals etc).

sparky130a

saajan_12 wrote: »

Technically it is the vendor's problem for failing to give you vacant possession if the tenant's don't leave.

Not really. And any lender certainly wouldn't see it that way.

G_M

You're crazy to have spent so much money on survey etc before the tenants are out.

Legally it will take a minimum of 2 months, and could take up to 6 months, to get the tenants out.

Tell your seller to start the process - and make sure he does it right - if he does it wrong, those timeframes could become 4 months or 10 months!

GKIM

Thank you for your responses, I phoned the vendor earlier and told him we won't be exchanging unless we have seen the property is vacant..

He phoned back to say they will be moving out at the end of next week. So we shall see...

AnotherJoe

Very wise. Do get the locks changed.
(funnily enough the house next to me is a rental thats been vacant for about 6 weeks, and there was a locksmith there today, new tenants due shortly i suspect)

Pixie5740

GKIM wrote: »

I know we cannot complete without vacant posession as it will be stipulated in our contracts - but am I within my rights to ask that the tenants move out before we even exchange?

You have no contract with the tenants so you can't ask them to do anything. The landlord can't even just ask them to move out, there's a due process to follow.

The tenants have a legally binding contract which allows them to live in the property. All you've got is a gentlemen's agreement that you'll buy the property. The tenants win this round of Top Trumps.

GKIM

Pixie5740 wrote: »

You have no contract with the tenants so you can't ask them to do anything. The landlord can't even just ask them to move out, there's a due process to follow.

The tenants have a legally binding contract which allows them to live in the property. All you've got is a gentlemen's agreement that you'll buy the property. The tenants win this round of Top Trumps.

I meant am I within my rights to tell the landlord we won't exchange without proof of vacant possession - I know I have no contract with the tenants.

The prevailing answer was yes so I have informed him of this now.