Buying a property with tenants in-situ

sharp910sh

Hi I am looking at buying a flat and have a viewing this weekend. The flat is what I am looking for and has been on the market for 1.5 years with the prices going down, up and down. However, when calling today to make a viewing the agent said that the property is tenanted. This came as a surprise, but he said its not a problem and the tenants will leave in 3 months if the flat is sold. I am not sure if they would happily leave, when the current notice period is 6 months and even that does not mean they have to leave the property they are renting.

I need to complete and buy the property before the stamp duty deadline. I am therefore confused to whether I am wasting my time viewing this property when in theory the tenant could stay and I would have wasted money on solicitor fees, searches and surveys etc.

What do you guys recommend?

hippocrates1

You don’t exchange contracts till they have left. 

davidmcn

sharp910sh said:

I need to complete and buy the property before the stamp duty deadline. 

What do you guys recommend?

Find something else. 

greatcrested

Agree with both comments, even taking into account the extension of the SDTL holiday.

Oh! And don't spend any money till they've left. No survey, no legal fees, no mortgage application fee....

Slithery

hippocrates1 said:

You don’t exchange contracts till they have left. 

You don't spend any money on solicitors/searches/mortgage/anything at all till they have left.

sharp910sh

I am thinking it is pointless, the landlord wants his cake and eat it. Its a shame as its the best property I've seen, but if the tenants do not leave there is no point buying it. 

hippocrates1

sharp910sh said:

I am thinking it is pointless, the landlord wants his cake and eat it. Its a shame as its the best property I've seen, but if the tenants do not leave there is no point buying it. 

My ex bought a flat  before covid with tenants. Back when you could serve notice. And it took absolutely ages to get rid as the landlord wouldn’t give notice till the purchase was more certain. Some people are entitled and want everything their way I guess.

AdrianC

How much is the potential SDLT bill, compared to the wasted purchase costs if they don't play nicely with the landlord's request for them to leave?

Remember those costs may include putting right issues with the condition they leave the place in...

sharp910sh

AdrianC said:

How much is the potential SDLT bill, compared to the wasted purchase costs if they don't play nicely with the landlord's request for them to leave?

Remember those costs may include putting right issues with the condition they leave the place in...

The SDLT saving is £3.75k. Will be interesting to see what the place is like as its been rented for a while it seems. 

Mahsroh

I'm about to market a tenanted property but to "investors only". If I don't get satisfactory offers I will wait until my tenants have left and market the property in the traditional way whilst empty.

However, what I have learnt in the last month is that it's amazing how many Estate Agents think it's acceptable (and easy) to sell a property to a "normal" buyer who plans on living in it, and just hoping that the tenants will just up and leave when it's convenient. 

Steer clear would be my advice. 

steampowered

You can't never be sure that "the tenants will leave".

That might be true, it might not. The tenants don't have to leave just because they were given notice by the landlord - only a court can end the tenancy.

Very often, the estate agent doing the sales has no relationship at all with the tenants and has no idea whether they will be leaving.

If you need to complete within the stamp duty deadline you probably need to be looking at vacant chain-free properties. Anything in a chain is going to struggle to complete in time.