1st time buyer, tenants in the house

MoLatif

Many thanks to you all for your numerous and detailed responses.

Pricewise, it was a bit cheaper than it could have been but certainly not bargain basement. Other similar ones on the estate have sold for 5-8k more this year and tgis house seemed to be in good shape.

Also the owner said that the tenants have already got accomodatuin lined up. None of this in writing, and if theyve already lined up tgeir next place why not move out sooner.

GDB2222

MoLatif wrote: »

Many thanks to you all for your numerous and detailed responses.

Pricewise, it was a bit cheaper than it could have been but certainly not bargain basement. Other similar ones on the estate have sold for 5-8k more this year and tgis house seemed to be in good shape.

Also the owner said that the tenants have already got accomodatuin lined up. None of this in writing, and if theyve already lined up tgeir next place why not move out sooner.

That saving is not to be sniffed at. It's the landlord's problem to get the property vacant by completion day, and I would leave it at that, personally. Discuss it with your mortgage advisor, to make sure the lenders will be happy.

The question has been raised what happens if the property is trashed by the tenants. You should discuss this with your solicitor, and I am sure it can be covered in the contract. You'll need to insure the property, so we are only talking about deliberate vandalism, and it's reasonable the sellers should take responsibility.

AdrianC

GDB2222 wrote: »

The advice that the property should be vacant before exchange is a bit overly cautious. What do you do if the vendor refuses? By that time you've already spent most of your costs, anyway.

If the vendor refuses to give vacant possession on exchange, then walking away at that point saves a heck of a lot of hassle when the vendor still refuses (or, more likely, is unable) to give vacant possession on completion...

Benight

MoLatif wrote: »

Hello,

Had an offer accepted on a 2 bed house in the NE to live in myself, mortgage in place and solicitors about to be instructed.

My problem is that there are tenants in it at the moment and am worried that my mortgage lender wont put up the money until theyve gone.

The story is is that they are family members of the landlord and will leave on completion but I have read that lenders will only pay up if the house is vacant at the exchange stage.

What extra paper work woyld i need from the owner for the lender to release funds before vacant possession?

If the property was to be sold on a full vacant possession basis then the tenants decided to stay put, what coyld I do then?

Thanks to you.
Mohammed

You need to ensure your solicitor is aware the property is currently tenanted. Your solicitor will then ensure the landlord has taken the necessary measures to allow you to purchse the property with vacant possession - a requirement of your mortgage offer I am sure (assuming you have asked for a typical residential mortgage).

If the tenants are still in occupancy when you come to complete, again you need to inform your solicitor immediately, just as if anyone else was in occupancy, such as the seller :eek:

Not sure who told you the property needed to be vacant at exchange - that is not the usual mortgage condition; vacant possession at completion is the usual term. But if your mortgage company is stipulating it as a term, then you will have to comply.
So perhaps delay exchange, and exchange & complete on the same day

Your solicitor will sort all this out for you - just let them know (but the solicitor should make themselves fully aware of any terms of your mortgage offer anyway)

GDB2222

AdrianC wrote: »

If the vendor refuses to give vacant possession on exchange, then walking away at that point saves a heck of a lot of hassle when the vendor still refuses (or, more likely, is unable) to give vacant possession on completion...

But that's hassle at the vendor's expense.

The OP is saying he's saving £5-8k for the potential hassle factor. Unless the vendor is a complete idiot, there's not much risk of any hassle at all, and personally I'd take it for that much saving.

AdrianC

GDB2222 wrote: »

But that's hassle at the vendor's expense.

Yes, ultimately the vendor may well be paying. Although it might involve a court case, and you might not see the money even after getting bailiffs etc involved.

But don't confuse hassle and expense. They're very different things.

davidmcn

Benight wrote: »

Not sure who told you the property needed to be vacant at exchange - that is not the usual mortgage condition; vacant possession at completion is the usual term. But if your mortgage company is stipulating it as a term, then you will have to comply.

Like I said above, exchange has absolutely nothing to do with the lender - they're not a party to the contract and their money isn't at risk until completion. So no, they won't care when exchange is, what the contract says, who is occupying the property or what condition it's in at the date of exchange.

AnotherJoe

GDB2222 wrote: »

The advice that the property should be vacant before exchange is a bit overly cautious. What do you do if the vendor refuses? By that time you've already spent most of your costs, anyway.

That doesn't have to be the case at all. It could be a stipulation right up front.
B; My offer is made contingent the house will be vacant on day of exchange.
S; No can do, completion.

B; Bye.

AdrianC

So let's assume the vendor is happy that there definitely, incontrovertibly, absolutely will be vacant possession on completion, but not on exchange.

How long are we talking between the two...?
And how can he be sure?

Benight

AnotherJoe wrote: »

That doesn't have to be the case at all. It could be a stipulation right up front.
B; My offer is made contingent the house will be vacant on day of exchange.
S; No can do, completion.

B; Bye.

S: Ok, next!

Hurry up now, property values rose by 1.1% in April.
On an average house price of £236,619, that's an increase of almost £100 per day! :eek:
https://www.bbc.co.uk/news/business-48199086