House buying question

Tiglet2

On a tenanted property though, it does have to be vacant on exchange - a buying solicitor would want their client to inspect the property once vacant prior to exchange and not want to risk the tenants still being in situ on completion day. If a client wants to take that risk against their solicitor's advice, then the solicitor would want to have something in writing to protect themselves from any action further down the line.

davidmcn

Tiglet2 wrote: »

On a tenanted property though, it does have to be vacant on exchange

It might be good advice, but it doesn't have to be vacant on exchange. As I said, the lenders don't care (there are no requirements in the CML Handbook about what the position ought to be at exchange) and the buyer and seller might both be content to take the risk.

I think we've had more threads here about owner-occupied properties which have failed to be vacant at completion than tenanted ones.

BohemianRhapsody

Thank you again for all the thoughts. There are certainly risks involved here and I am not sure we would want to go again our solicitors advice if they would advice against proceeding.

Interesting advice about request that the exchange and completion on the same day. You somebody please elaborate on what advantage would this have in our situation?

Marvel1

davidmcn wrote: »

It's commonplace for clients to instruct clients to do things against their solicitors' advice. Getting a waiver signed seems a bit OTT, but the solicitor would certainly want something on file making clear what their advice and the instructions were.

Personally i don't find a waiver OTT to cover yourself especially today when first thing wrong and people say "how much compo can I get?"

Tiglet2

Lenders do not care whether a tenant still occupies a property once completion takes place, funds are provided and the purchaser becomes the new owner. So the purchaser now owns a tenanted property meaning he is the landlord with the responsibility of now evicting his tenants, plus he will be paying the new mortgage, but not living in the property. This is why buyers should be guided by their solicitor and be fully aware of the risks involved. A completion date is agreed on exchange but in this situation it would be very risky to decide on a completion date when you have no idea if the tenants are leaving or staying put.

In context, the lender may pull the offer if completion could not take place before the offer expired, or before expiry of any agreed extensions.