Buying a previously rented property

Cakeguts

ah93 wrote: »

I've just found this on a website, and believe this is the situation our vendor is in?

"Problems Selling A Rental Property With No Sitting Tenants -
Selling a rental property while it is empty eliminates a lot of complications in selling the house with sitting tenants and opens the market to private buyers who need a residential mortgage



HOWEVER, empty property increases the risk of unlawful occupation, property damage (deliberate or otherwise) and insurance cover/costs ESPECIALLY IF A PROPERTY TAKES A LONG TIME TO SELL.

It also means a loss of income (rent), increased expenses (utility bills, insurance) and liability (council tax) for a potentially significant period of time."

That is the case with any vacant property apart from the loss of rent. If someone dies the house will be empty for the time taken to get probate and sell which could be longer.

Cakeguts

Pixie5740 wrote: »

Good point well made. Whatever is going on the current owner is being economical with the truth.

There is clearly something weird going on with this property. The fact that none of us on here can work out what it is makes me think that it is some sort of fiddle or scam.

ah93

Thank you all for your replies.

The previous tenant did not die.

Shall I call the estate agents myself now, or wait for my solicitor? I am really worried

jackomdj

As he works for your EA could it be something as simple as they don't have enough rental properties on their books, so want it to either encourage prospective landlords to use them or get prospective tenant theough the door?

CarrieVS

Hypothetically, if a property was insured as a rental property, is it likely that the policy would be void if it was no longer being let or offered for rent?

If that was the case, would it constitute insurance fraud if the owner advertised it for rent with no intention of letting it to anyone?

I'd be willing to bet that's what's going on. The explanation about "something to do with legal/insurance" is probably just the vendor being deliberately vague as he understandably doesn't want to be open with OP about what he's trying to pull. It may not directly be any skin off their nose but it doesn't exactly strike confidence that they're going to be open and honest about the sale.

ah93

CarrieVS - That is exactly what he explained to me that the policy would be void if it was no longer being let or offered for rent.

My friend called up the letting agents it is currently advertised through. They have said a viewing can happen tonight. Property available to live in for 12 months, from next week. Our vendor assured us there would be a delay in booking a viewing/or not entertained, on any enquiries. But then I'm sure the letting agents wouldn't even advertise the property if they knew it was a false sale.

My solicitor is now doing some digging, as I've said I want a reason for all of this by this afternoon.

AnotherJoe

Looks like my guess was correct

Perhaps he's simply trying to save £200 quid by not changing insurance policies from BTL to residential/unoccupied but that's going to look pretty stupid if it loses him his buyer. In which case now he's lying to you. He's definitely lying to someone.

...... and it gets worse if they now are talking about showing people round.
I would insist its off RM as a rental before you proceed further and make it clear via the EA that rental viewings are being accepted and as a consequence he's this close to losing you as a buyer. I think i'd be looking at other houses as well just in case.

ah93

AnotherJoe - Yep! I'm so worried.

Have chased EA again just now.

Solicitor is also chasing our vendor's solicitor. She said she will get back to me as soon as there is a response.

Do we have any legal rights to ask him to take the property off of RM if we haven't exchanged contracts yet?

davidmcn

ah93 wrote: »

Do we have any legal rights to ask him to take the property off of RM if we haven't exchanged contracts yet?

Until you have exchanged contracts then there are no rights between you. You can ask, they don't have to do what you ask.

ah93

Estate agents have been in touch this afternoon. Apparently we don't need to worry about the house being advertised to let, as it 100% will not be let out. It is to do with an insurance policy on the house apparently?
Was politely told to back off too...