Buying a property that’s occupied with tenants

lookstraightahead

steve866 said:

I find it interesting that on this thread and others on here, everyone assumes that all tenants reactions to being asked to move out will be met with refusal and it dragging out for a long time. Is this really the case in general? In my circle of friends none of us would have stayed for months on end if a landlord wanted to sell, we would all have moved out in a reasonable timeframe, is this unique?

I think it's that if you complete and tenants don't move out, you become their landlord. Most lenders will only lend with vacant possession, and because that can never be guaranteed when a property is 'sold' then everyone gets twitchy.

lots of tenants can't just move out and they are legally protected.

GrumpyDil

And bear in mind that tenants may be advised not to move out until physically evicted by helpful council housing units where they are looking for council assistance. 

It will be a very small minority of cases but if you end up in this situation Lilley to cause issues, particularly in the current eviction climate. 

user1977

steve866 said:

I find it interesting that on this thread and others on here, everyone assumes that all tenants reactions to being asked to move out will be met with refusal and it dragging out for a long time. Is this really the case in general? In my circle of friends none of us would have stayed for months on end if a landlord wanted to sell, we would all have moved out in a reasonable timeframe, is this unique?

The risk is probably a bit overstated here, but I presume all you mean is that you would be willing to move - if you had difficulty finding a suitable new place, or you couldn't currently pass new credit checks, you'd be more likely to stay where you were.

And if nothing else, it brings in a party to the chain who has absolutely no incentive or desire to move in the first place.

Sistergold

EndlessStruggle said:

Okay so the tenants are now the least of my problems as the house next door which is almost identical (a few modifications and extra land) is up for sale for 70k more than my accepted offer

Try your luck with this house next door? 

lookstraightahead

The house next door is more expensive because there is more guarantee of vacant possession. Tells you something.

74jax

EndlessStruggle said:

Okay so the tenants are now the least of my problems as the house next door which is almost identical (a few modifications and extra land) is up for sale for 70k more than my accepted offer

Is the house exactly the same?  Same layout, decorated the same (tenanted is usually basic), same size, does it have sitting tenants, etc etc.  Can you provide links to both? 

If you want to wait till next year (time for them to look, view, offer etc) go ahead. If not pull out. Don't spend any money at all until the tenants have started to pay money for searches. 

Why didn't they offer on the house they are renting? 

badger09

74jax said:

EndlessStruggle said:

Okay so the tenants are now the least of my problems as the house next door which is almost identical (a few modifications and extra land) is up for sale for 70k more than my accepted offer

Is the house exactly the same?  Same layout, decorated the same (tenanted is usually basic), same size, does it have sitting tenants, etc etc.  Can you provide links to both? 

If you want to wait till next year (time for them to look, view, offer etc) go ahead. If not pull out. Don't spend any money at all until the tenants have started to pay money for searches. 

Why didn't they offer on the house they are renting? 

Why do you think tenants are buying the house next door?

badger09

steve866 said:

I find it interesting that on this thread and others on here, everyone assumes that all tenants reactions to being asked to move out will be met with refusal and it dragging out for a long time. Is this really the case in general? In my circle of friends none of us would have stayed for months on end if a landlord wanted to sell, we would all have moved out in a reasonable timeframe, is this unique?

I don't think everyone on here is suggesting that.

However, some of us, myself included, have been in the position where a chain collapsed because tenants did not want to, or were unable, to move out. We lost our onward purchase after tenants made clear they were not willing to move out of our vendor's proposed purchase.

It cost us a lot of money, and time  - not to mention the stress. I would never commit to buying a tenanted property, and if we ever move again, I would also avoid buying a property where there are tenants anywhere in the chain - apart from those wanting to buy, obviously!

EndlessStruggle

Luckily my solicitor is no sale, no fee and they have said they will do the majority of the chargeable work last and I'm holding off on a survey until I get some assurance they are planning to move out so it is just time being wasted at the moment.

I knew the house was under priced by about 25k, I guess to take into account it is tenanted so I am waiting for them to come back asking for more money. 

I'm assuming they could afford the rent but not to purchase the house which is why they didn't offer to buy. I don't know much about them other than they weren't happy at the viewing, which I totally understand being a long term renter myself.

The house next door although a bit bigger isn't as nice. I would consider it if it was a bit less, maybe if the price drops. 

There has been some quite significant changes to the other property, it is a corner plot with more land and the house is a bit bigger but not much. Same layout but looks a bit bigger. They have also knocked down the garage, added more windows and done quite a lot more upgrading. 

steve866

lookstraightahead said:

steve866 said:

I find it interesting that on this thread and others on here, everyone assumes that all tenants reactions to being asked to move out will be met with refusal and it dragging out for a long time. Is this really the case in general? In my circle of friends none of us would have stayed for months on end if a landlord wanted to sell, we would all have moved out in a reasonable timeframe, is this unique?

I think it's that if you complete and tenants don't move out, you become their landlord. Most lenders will only lend with vacant possession, and because that can never be guaranteed when a property is 'sold' then everyone gets twitchy.

lots of tenants can't just move out and they are legally protected.

I don’t think the OP or anyone was suggesting they should proceed with the purchase with tenants in situ, but everyone is telling the OP to forget about the house because the tenant won’t leave. My experience is that the vast majority of tenants will move out in a reasonable timeframe if asked to leave, but this is of course anecdotal. I’m wondering what the facts are? I assume it will depend on area and value or house etc.