Re: advice on exchange of contracts

hazyjo

Your lender as well as your solicitor may have a problem with this. Glad you've stuck to your guns. I really can't see any alternative.

I wonder if there might be a way of assuring the vendor with a cash deposit or something held with your/his solicitor just in case you decide to walk if he gets them out and you don't exchange. Might put his mind at rest a bit.

I'm sure he's just worried he'll boot them out and you'll go nurrrr had no intention of buying your house anyway. Yes, paranoia, but maybe he's been stung before.

Jx

martindow

This is a situation where the agents should be earning their money. They want the sale to go ahead to get their fee and are in a position to talk firmly to the seller.

firsttimebuyer2017

The agent also seems to be affirming their position on this which makes no sense at all given they want the sale.

Cakeguts

firsttimebuyer2017 wrote: »

The agent also seems to be affirming their position on this which makes no sense at all given they want the sale.

It sounds as if they are hoping to sell to another landlord in which case they should have told you that to start with.

Good luck with finding something else. Forget about looking at houses with tenants still living in them.

firsttimebuyer2017

Hi all,

The seller has now stipulated they will serve notice if the searches are undertaken. It is a compromise from doing this only at exchange. My concern though is mounting legal costs and no assurance they will be gone in two months. We do like the property a lot and there are few in the area that match it.

Feedback would be welcome.

saajan_12

firsttimebuyer2017 wrote: »

Hi all,

The seller has now stipulated they will serve notice if the searches are undertaken. It is a compromise from doing this only at exchange. My concern though is mounting legal costs and no assurance they will be gone in two months. We do like the property a lot and there are few in the area that match it.

Feedback would be welcome.

Do they understand you won't exchange until the tenants are physically out and you have checked it is vacant?

If yes, at the end of the day its a gamble.. is the CHANCE of buying the property worth paying £x for the searches? At some point every house buyer has to commit money to searches, surveys, etc knowing the seller may pull out for no reason. Here you have an additional 'reason' the sale may fall through, which is the tenants don't leave in a timeframe you and vendor can deal with or they leave the property more damaged.

AdrianC

firsttimebuyer2017 wrote: »

The seller has now stipulated they will serve notice if the searches are undertaken.

Get those searches in, then. You're clearly nowhere near exchange yet. What is the relevant rent period date for the tenants? It's two months from their rent period date, not from the date of notice. So if the rent period starts on the 6th, then you've got a month before the notice has to be in to be effective at the same time. If it's the 8th, the landlord needs to get a wiggle on or you'll be waiting another month.

My concern though is mounting legal costs

No costs that you wouldn't be incurring without this.

and no assurance they will be gone in two months.

Always the case when viewing a tenanted property.

We do like the property a lot and there are few in the area that match it.

Well, your other choice is to walk away...

hazyjo

firsttimebuyer2017 wrote: »

Hi all,

The seller has now stipulated they will serve notice if the searches are undertaken. It is a compromise from doing this only at exchange. My concern though is mounting legal costs and no assurance they will be gone in two months. We do like the property a lot and there are few in the area that match it.

Feedback would be welcome.

You take the same risk when buying any property that the seller won't just say they're no longer selling and you'd have incurred costs.


Appreciate you do still have the risk of the tenants not leaving though... I've bought at least two with tenants still in who have vacated before exchange. Personally it'd not put me off, but many would say not to spend until they're out. Up to you really and how averse you are to risk...

Cakeguts

If you start the searches you could still be waiting 6 months from there until exchange. The seller could also take the house off the market and put it back on at a higher price once it is vacant. The whole problem with this purchase is that it is high risk. Much higher risk than one that is lived in by an owner occupier. I really can't believe that this is the only house in your area that you could buy? If it is cheaper than most you have got to realise that this is because tenants are living there now. When the tenants have gone there is no reason why it shouldn't sell for the same as any other vacant house in the area. Are you sure that the vendor won't take the house off the market and put it on at a higher price once it is vacant? You can tell if this is likely to happen if the house appears to be cheaper now.

I feel that for some reason you are trying to buy this house rather than looking for any other I don't really understand why because you know that the risk of you spending money on it and then not getting to buy it is already there.

pretamang

have you got as far as booking a survey and applying for the mortgage yet?

It might be worth agreeing to do the searches first to get things moving; but before doing so I would make it absolutely clear that nothing further will be completed, surveys/mortgage etc. until the tenants have actually moved out (not just notice given).

If they are serious about selling they need to demonstrate this and it has to be empty, otherwise you walk.

Start/keep looking at other properties in case this one falls through; I would also ask the same EA what he has on the market, tell him you're not convinced about the seller's desire to go ahead with the sale so you need keep your options open until they commit to sell.