Vacant possession of a property currently rented by parents

Tuikhe

Hi everyone! 

I wondered if anyone please help…

So I am purchasing the property we’ve been renting for 13 years. When the offer was accepted we were told that we could stay in the property till completion. Received a call from landlord saying we have to move out with all of our possessions between exchange and completion. The whole point of us buying was so that we don’t have to move out when the landlord wanted to sell. He wants us to pay for the content but most of it was purchased by us with his permission to dispose of old worn out furnitures. We don’t want any of his things so happy for him to remove anything that’s left of his. 

We’ve received a copy of the draft contract it says it’ll be sold with vacant possession and the following is stipulated in the contract  “occupier concurs in the sale of the property on the terms of this contract, undertakes to vacate the property on or before the completion date and releases the property and any included fixtures and contents from any right or interest that the occupier may have”  - what does that mean for my parent who have a tenancy agreement with the sellers? Are they required to move out before completion? Estate agent assured me that this would not be the case so did the sellers when offer was accepted. 

Since my parents are legally bound by the tenancy agreement and not me (I am the one buying), what would happen if they were to refuse to vacate the property before completion? Would I lose my deposit if we exchange in light of this? 

Any help would be highly appreciated.

babyblade41

Exchange and complete on the same day 

74jax

I wouldn't be dealing with the estate agents or the landlord. Speak to your solicitor. 
Go through the inventory of what you/your parents already own and make it clear to your solicitor.

If you do not want to move out now is the time to say, to your solicitor, no one else, they are dealing with reaching an amicable contract.

Exchange and complete on the same day.
Exchange one day, complete the next with the contract stating you can leave your belongings in it. 

Ask your solicitor to include anything that is not yours is to be removed before completion. 

eddddy

I'd guess the problem is that your contract says you are buying the property with vacant possession.

If the tenants (i.e. your parents) are still in the property on completion day, you could claim that you don't have vacant possession, and claim damages from the seller for breach of contract.

If that is the problem, same day exchange and completion wouldn't solve it.


You should explain the problem to your solicitor - perhaps there are undertakings that you and/or your parents can sign, to say that you consent to your parents being in the property, and you wont claim damages.

Tuikhe

eddddy said:

I'd guess the problem is that your contract says you are buying the property with vacant possession.

If the tenants (i.e. your parents) are still in the property on completion day, you could claim that you don't have vacant possession, and claim damages from the seller for breach of contract.

If that is the problem, same day exchange and completion wouldn't solve it.


You should explain the problem to your solicitor - perhaps there are undertakings that you and/or your parents can sign, to say that you consent to your parents being in the property, and you wont claim damages.

The thing is I don’t want ro claim damages, I want to prevent my landlord to stop us moving out before completion. He said we had to take all our things and leave the property empty. He knew the reason we were buying was because it would be hard to move with everything we have and didn’t want the hassle of moving

warby68

It sounds as if the wording of your contract is not suitable for your circumstances

One for your solicitor to resolve in conjunction with your lender if applicable.

It could be a little complex as the buyer and the current tenants seem to be different parties. Your parents rights under their tenancy will have to be voided in some way I would imagine to ensure you are not effectively purchasing a BTL with tenants in situ for which a standard residential mortgage is unlikely to be suitable. Fewer problems of course if there is no lender involved.

eddddy

Tuikhe said:

The thing is I don’t want ro claim damages, I want to prevent my landlord to stop us moving out before completion. He said we had to take all our things and leave the property empty. He knew the reason we were buying was because it would be hard to move with everything we have and didn’t want the hassle of moving

I realise that you don't want to claim damages. But the landlord needs to protect himself.

Just saying you won't claim damages won't be good enough. The landlord will want a watertight written legal agreement saying that you absolutely, definitely cannot claim damages - even if you try to.


So you need to talk to your solicitor to see if it's possible to construct an agreement like that.

And the landlord (and his solicitor) would need to check the agreement to make sure they're happy with it as well. And your mortgage lender needs to be happy as well.



Edit to add...

I doubt that your landlord intentionally misled you. He probably didn't understand the risks. But his solicitor has probably now explained the risks to him.

user1977

There's no need for any artificial moving out to achieve "vacant possession". All that is required is for all the parties to agree what's actually happening, i.e.

• parents are surrendering their tenancy on the completion date
• OP is buying with vacant possession, apart from their parents still hanging around
• OP's lender is taking security over a property in which the parents will be living, and effectively they'll already have moved in (but without any rights from the previous tenancy)

theoretica

I am not sure if this would work, but it would be worth asking if changing the tenancy agreement from your parents to you would make things legally simpler. 

Tuikhe

theoretica said:

I am not sure if this would work, but it would be worth asking if changing the tenancy agreement from your parents to you would make things legally simpler. 

From our phone conversation what I understand is that the landlord wants us to pay him to keep the content. But we don’t want that, the alternative is for us to move out so he can remove his things. He doesn’t seem to be concerned about me claiming a breach of contract as he knew from the beginning that my family and I would live here. My parents have completed the occupiers consent form for the lender 

warby68

So landlord really just wants a bit more dosh?

What things does he want to remove and/or how much does he want? 

I still think there might be a documentation issue but also think this is time for solicitor to earn their money and guide you through it. If its just an 11th hour attempt for a bit more cash it could be a case of who blinks first, bit like a buyer seeking a price drop just before exchange.