Seller Can't Get Tenants Out

ThemeOne

I've just had the seller of an investment property pull out. We suspected the tenants of sub-letting so decided that vacant possession would be a condition of purchase as didn't want to end up with an unlicensed HMO.

The seller now says they are council tenants and she can't get them out. Could this be correct?

G_M

I'm afraid I have no idea what kind of tenancy the seller set up.
It's possible it was a commercial tenancy with the council, who then sublet the property to council tenants.

In that case the seller has nopower to evict as the occupants have a tenancy with the council, not the owner/seller.

Lesson 1:
Landlords should think carefully before signing up to 'guaranteed rent schemes' which usually involve these commercial tenancies

Lesson 2
buyers should beware offering to buy properties with tenants. Wait till the property is empty before making any expenditure eg searches, surveys, legals etc

stator

Some councils and housing associations will rent and sub-let, but only from the owner of the property.
So it sounds like the current owner has been lying to you at some point if you didn't already know that.

But if you've pulled out, why does it matter?

Guest101

ThemeOne wrote: »

I've just had the seller of an investment property pull out. We suspected the tenants of sub-letting - why did you suspect this? so decided that vacant possession would be a condition of purchase as didn't want to end up with an unlicensed HMO.

The seller now says they are council tenants and she can't get them out. Could this be correct?

Who said they were subletting

ThemeOne

G_M wrote: »

I'm afraid I have no idea what kind of tenancy the seller set up.
It's possible it was a commercial tenancy with the council, who then sublet the property to council tenants.

In that case the seller has nopower to evict as the occupants have a tenancy with the council, not the owner/seller.

Yes indeed - I suspect the seller didn't really understand what tenancy she'd set up - or didn't understand the implications of it, shall we say.


More annoying than anything else, as luckily no legal fees have been expended.

martinsurrey

G_M wrote: »

I'm afraid I have no idea what kind of tenancy the seller set up.
It's possible it was a commercial tenancy with the council, who then sublet the property to council tenants.

In that case the seller has nopower to evict as the occupants have a tenancy with the council, not the owner/seller.

Lesson 1:
Landlords should think carefully before signing up to 'guaranteed rent schemes' which usually involve these commercial tenancies

Lesson 2
buyers should beware offering to buy properties with tenants. Wait till the property is empty before making any expenditure eg searches, surveys, legals etc

A far more likely situation is that they are private tenants with rent paid by the council.

The tenants have told the council they need to be rehoused as they are getting evicted and the council have told them to get back in touch when the bailiffs are on the door step, which has flustered the amateur landlord.

Your advice is spot on in all cases though.