Buying a property that’s occupied with tenants

canaldumidi

Deleted User said:

All we’ve been told is the tenants have decided to buy a property of their own, instead of renting again, but we’ve been advised not to exchange until they’ve moved out, so this would instantly mean waiting for them to buy and complete, and I’m not sure if we’re being unreasonable I’m not wanting to wait this long or whether the seller is being unreasonable expecting us to, especially as we weren’t told about this when offering on “chain free” 

Soit'sNOT 'chain free'. It's dependant on the tenants finding a property, applying for and getting a mortgage, doing a survey etc any of which could take time and lead to them pulling out and staying.

That's assuming you are being accurately informed.

Don't instruct a solicitor to start, nor pay for a mortgage application or survey or incur other costs until they have exchanged contracts and thus commited to leave.

If this means they move and the LL/seller loses some rent while you then progress, that's his problem (and part of his tenancy business expenses) not yours.

SavingPennies_2

I bought a property (where I live now) which had a tenant living in it when I viewed and put it offer etc. It was a risk, but the tenant moved out about 2 weeks before completion (longer than their notice period, they were given ample/ extra time to find somewhere new to live) obvs I refused to exchange until the property was empty (and I went in myself to confirm it definitely was!). Things were held up a bit longer but the whole thing took about 6 months, which isn't a particularly unusual timeframe anyway. The "years" scenario is certainly possible but it is worst case, not all renters will dig their feet in until they are evicted, but if they have explicitly stated they wont move out until they have bought a property I would consider moving on, I think you could be waiting some time but depends how much you want the property.

Norman_Castle

Deleted User said:

I cannot exchange until they vacate and no date can be set for this until they’ve found a property to live in, and obviously there is no incentive for them to hurry. 

They're presumably paying rent which stops when they buy. If they are serious about house hunting they may leave soon. Leave your offer there but keep looking at another properties.

Ally_E.

SavingPennies_2 said:

I bought a property (where I live now) which had a tenant living in it when I viewed and put it offer etc. It was a risk, but the tenant moved out about 2 weeks before completion (longer than their notice period, they were given ample/ extra time to find somewhere new to live) obvs I refused to exchange until the property was empty (and I went in myself to confirm it definitely was!). Things were held up a bit longer but the whole thing took about 6 months, which isn't a particularly unusual timeframe anyway. The "years" scenario is certainly possible but it is worst case, not all renters will dig their feet in until they are evicted, but if they have explicitly stated they wont move out until they have bought a property I would consider moving on, I think you could be waiting some time but depends how much you want the property.

Same happened in our case, 3.5 months to complete with tenants still living in the property we were buying. They didn't dig their heels in, they moved to another rental property, no problem. We viewed the property second time after they moved out and again a week later before we exchanged to ensure they were indeed gone.

pinkshoes

Deleted User said:

All we’ve been told is the tenants have decided to buy a property of their own, instead of renting again, but we’ve been advised not to exchange until they’ve moved out, so this would instantly mean waiting for them to buy and complete, and I’m not sure if we’re being unreasonable I’m not wanting to wait this long or whether the seller is being unreasonable expecting us to, especially as we weren’t told about this when offering on “chain free” 

The seller wanted to sell the house AND get maximum rent, hence keeping the tenants in and hoping they'd move out in time.

As you have no doubt spent money on searches etc... then the seller now knows that you would have to kiss goodbye to this money if you pull out.

Tenants does not mean chain free. Tenants in a property means ARGH! 

Personally I would want to see a copy of the S21 notice issued to the tenant to evict them (has the LL even done this?!?!).  I would also be looking for something else too, as this could take months if not years!

EndlessStruggle

I'm in the same boat as I've offered on a house with tenants in.

As with yours mine was listed as chain free and they dropped that it has tenants rather than owner at the viewing.

I'll give them 6 months before I think about pulling out, unless something else comes along that blows my socks off like that house has.

I've been keeping an eye open but nothing has caught my eye yet.

doodling

Hi,

You have to remember that there is no guarantee that you will even be able to afford the property.

Even if you have agreed a price now, there is nothing stopping the vendor from increasing the price once he gets the tenants out, if that is what the market will stand.

Of course, there is also the possibility that house prices will fall and you will be able to reduce your offer and save some money.

Do you feel lucky?

lookstraightahead

Tenants aren't pests by the way. You don't just "get them out"

Scotbot

You know where they live. I would go round introduce yourself to the tenants and ask them what their plans are.  A quick 5 minute polite conversation will tell you where you stand

lookstraightahead

Scotbot said:

You know where they live. I would go round introduce yourself to the tenants and ask them what their plans are.  A quick 5 minute polite conversation will tell you where you stand

This could be seen as harassment though and makes no difference to what they may or may not do. It's of no interest to the tenants.