Cash for Keys

Bex_27

Hi,
I am currently in the process of buying a property. Unfortunately, my partner is on another mortgage that he needs to be off before we can complete. The property is with an ex-partner and the matter has been ongoing for a while. Unfortunately, she couldn't get a Buy to Let mortgage due to cladding and therefore has got a private equity one but as there is a tenant currently in the property, she has given him six months. If he doesn't move out in the next couple of months, we will lose our property. We have offered £750 if he moves out by the end of November and has given him 2 weeks to let us know if he'd be happy to accept that. Has anyone done cash for keys? We'd be happy to go up to £1,500. The properties in the area range from £500-650 and he currently pays £570. 

Any help will be appreciated It's been the longest week and a half! No updates but he works odd shifts

Bex_27

Also, before anyone says we shouldn't have put a reservation down on our property, unfortunately, we were told by her solicitors the matter would be quick to sort out and that she 'had a mortgage'. It turned out that it wasn't the case and we have spent out money on solicitors etc. Basically, we need to try all we can to get the person out of the property promptly. 

greatcrested

There is very little guarantee that the tenant will leave, and if not, it could be 9 - 15 months before eviction could take place. A higher incentive might help of course.

Must admit I didn't quite follow who owns what property and how, but irrespective, if your purchase depends on this tenant leaving, you are in for a stressful time......

Bex_27

greatcrested said:

There is very little guarantee that the tenant will leave, and if not, it could be 9 - 15 months before eviction could take place. A higher incentive might help of course.

Must admit I didn't quite follow who owns what property and how, but irrespective, if your purchase depends on this tenant leaving, you are in for a stressful time......

He has accepted that he needs to leave, it's just asking if he can leave sooner. It's been all so stressful and we have done everything we can now :-( My partner owns a flat with his ex that he is handing over to her but it's not been very easy! We decided to buy a house because 'it would be quick' according to her solicitors. We are now 9 months down the line and no further

macman

Bex_27 said:

Also, before anyone says we shouldn't have put a reservation down on our property, unfortunately, we were told by her solicitors the matter would be quick to sort out and that she 'had a mortgage'. It turned out that it wasn't the case and we have spent out money on solicitors etc. Basically, we need to try all we can to get the person out of the property promptly. 

What kind of 'reservation'?.You are buying the property, you made an offer, it was accepted. No money changes hands until exchange of contracts.

greatcrested

Bex_27 said:

greatcrested said:

There is very little guarantee that the tenant will leave, and if not, it could be 9 - 15 months before eviction could take place. A higher incentive might help of course.

Must admit I didn't quite follow who owns what property and how, but irrespective, if your purchase depends on this tenant leaving, you are in for a stressful time......

He has accepted that he needs to leave, it's just asking if he can leave sooner.

Mabe he has. But in reality he does not need to. And if between now and end of November he changes his mind there is nothing anyone can do to make him leave other than offer more money.

AdrianC

Bex_27 said:

Unfortunately, my partner is on another mortgage that he needs to be off before we can complete.

He isn't just "on another mortgage". He is joint owner of that property, and joint landlord for that tenant.

Bex_27

AdrianC said:

Bex_27 said:

Unfortunately, my partner is on another mortgage that he needs to be off before we can complete.

He isn't just "on another mortgage". He is joint owner of that property, and joint landlord for that tenant.

I understand that but it's a bit more complex than that. We know he needs to come off the deeds etc. But, an agreement has been made and he will be receiving a lump sum in exchange for handing over the property to his ex-partner.

Bex_27

greatcrested said:

Bex_27 said:

greatcrested said:

There is very little guarantee that the tenant will leave, and if not, it could be 9 - 15 months before eviction could take place. A higher incentive might help of course.

Must admit I didn't quite follow who owns what property and how, but irrespective, if your purchase depends on this tenant leaving, you are in for a stressful time......

He has accepted that he needs to leave, it's just asking if he can leave sooner.

Mabe he has. But in reality he does not need to. And if between now and end of November he changes his mind there is nothing anyone can do to make him leave other than offer more money.

We understand that but my question was "Has anyone done cash for keys?" - I was just hoping someone could share their experience of doing this. I know my mortgage advisor did it and he offered someone £2k for 28-day notice. They jumped at the chance! 

pinkteapot

Bex_27 said:

greatcrested said:

Bex_27 said:

greatcrested said:

There is very little guarantee that the tenant will leave, and if not, it could be 9 - 15 months before eviction could take place. A higher incentive might help of course.

Must admit I didn't quite follow who owns what property and how, but irrespective, if your purchase depends on this tenant leaving, you are in for a stressful time......

He has accepted that he needs to leave, it's just asking if he can leave sooner.

Mabe he has. But in reality he does not need to. And if between now and end of November he changes his mind there is nothing anyone can do to make him leave other than offer more money.

We understand that but my question was "Has anyone done cash for keys?" - I was just hoping someone could share their experience of doing this. I know my mortgage advisor did it and he offered someone £2k for 28-day notice. They jumped at the chance! 

No personal experience, but everyone always has their price. If you offer the tenant £1 million to leave tomorrow, they probably would. If you offer them £100 to leave, they probably won't. Somewhere in between will be the amount that makes the hassle worthwhile for them, and that will depend on how easily they can find alternative accommodation and move on short notice - whether lots of rentals are available in the area, whether they have friends/family they could stay with, etc. It's just a conversation with the tenant...

I think giving him two weeks to decide on the £750 was probably a mistake - this'll be a negotiation back and forth and it'll take ages at that pace. You can't really go back on that now, but come the end of the two weeks, if they say no, offer more and give them a few days to decide. Just make sure you do it in a friendly, not threatening way! ("We appreciate this is a massive inconvenience to you which is why we're offering money to help with the process and compensate you for your trouble - obviously you're within your rights to say no.")

And obviously don't hand over any cash till they've actually vacated and given the keys back!

Bex_27

macman said:

Bex_27 said:

Also, before anyone says we shouldn't have put a reservation down on our property, unfortunately, we were told by her solicitors the matter would be quick to sort out and that she 'had a mortgage'. It turned out that it wasn't the case and we have spent out money on solicitors etc. Basically, we need to try all we can to get the person out of the property promptly. 

What kind of 'reservation'?.You are buying the property, you made an offer, it was accepted. No money changes hands until exchange of contracts.

We have placed a reservation fee down on the property, we know that's just £500 but we have also paid for our solicitors, so potentially there is another £1,500 at stake and if we have to go for another property then we lose all the incentives we had with this property, £13,500 and we'd have to pay out another £1,500 for solicitors. We have sought out a plan B but it will end up costing us about £10,000 plus the property is also £20,000 more. So, we do have a lot at stake at the moment and therefore trying every avenue to try and resolve this issue that according to her solicitors was meant to be done quickly.