Purchasing with wear and tear

SavingPennies_2

The defects you describe are very minor/ nothing, even on a nearly new property. You will almost certainly notice other wear and tear when the tenants move out that certainly wouldn't justify a 6K reduction (whether its worth 6k less than the asking price is another matter). 

I bought a tenanted property and it was fine, just be prepared for possible delays if the tenants don't move out in time and do not exchange/ complete until you have been inside and seen they have moved out with your own eyes!

nekr0mantik

Thanks all

Tricky part of this is I am also renting and need to provide 2 months notice to leave. Same time vendor does only want to hand in notice after exchange  so most likely they will wait for B2L buyer instead. I will voice my concerns to the agent.

nekr0mantik

eddddy said:

It's worth clarifying a few things...

• The seller is taking a bigger risk than the buyer, if they exchange contracts before the tenants have moved out

• So the seller's solicitor will advise the seller very, very strongly not to exchange contracts before the tenants move out. (But some 'dodgy' sellers might be prepared to ignore their solicitors strong advice.)

Comments about breaching a residential mortgage and ending up owning a property with tenants, etc are misleading. In reality, this is more likely to happen:

• If the tenants are still in the property on completion day, the seller has failed to give vacant possession. So the seller has breached the terms of the contract - so the buyer does not have to complete. (So the buyer doesn't have to pay the seller any money.)

• The seller will probably have to pay damages to the buyer for beaching the terms of the contract

(However, it's likely to be very frustrating and inconvenient for the buyer that completion will be delayed or may not happen at all.)

Ah ok.

But as the buyer you risk on spending money on solicitors etc if they dont move out.

Granted as they breached the contract they would be liable it would still cost me to take out legal action against them.

My bigger worry is not having anywhere to stay if that were to happen as if I give notice to my landlord then they find new tenant then I would need to not leave and make them evict me which is not fun haha

Best solution is not to exchange until vacant but as its a landlord they wont be happy to have empty flat for long period but I suppose thats less of a financial risk then failing to have property vacant on completion and having me go after them legally.

MaryNB

nekr0mantik said:

eddddy said:

It's worth clarifying a few things...

• The seller is taking a bigger risk than the buyer, if they exchange contracts before the tenants have moved out

• So the seller's solicitor will advise the seller very, very strongly not to exchange contracts before the tenants move out. (But some 'dodgy' sellers might be prepared to ignore their solicitors strong advice.)

Comments about breaching a residential mortgage and ending up owning a property with tenants, etc are misleading. In reality, this is more likely to happen:

• If the tenants are still in the property on completion day, the seller has failed to give vacant possession. So the seller has breached the terms of the contract - so the buyer does not have to complete. (So the buyer doesn't have to pay the seller any money.)

• The seller will probably have to pay damages to the buyer for beaching the terms of the contract

(However, it's likely to be very frustrating and inconvenient for the buyer that completion will be delayed or may not happen at all.)

Ah ok.

But as the buyer you risk on spending money on solicitors etc if they dont move out.

Granted as they breached the contract they would be liable it would still cost me to take out legal action against them.

My bigger worry is not having anywhere to stay if that were to happen as if I give notice to my landlord then they find new tenant then I would need to not leave and make them evict me which is not fun haha

Best solution is not to exchange until vacant but as its a landlord they wont be happy to have empty flat for long period but I suppose thats less of a financial risk then failing to have property vacant on completion and having me go after them legally.

That's why I said do not give notice until you exchange. It's standard advice. Yes you'll likely have an overlap in rent and mortgage payments (depending on the gap between exchange and completion, and your tenancy dates) but if you're buying a half million pound flat that's minor in the grand scheme of things. 

Tough on the seller. That's probably why they haven't sold it yet. They want no voids but they want to sell it as full market rate. If they limit themselves to BTL buyers they would likely have to drop the price. Given what the seller has told you (no notice on their tenants until after exchange) I would walk away now. The seller shouldn't have even entertained your offer if they are insisting on that. Either they are a clueless landlord or they are hoping for a clueless buyer. 

Do not exchange until you have vacant possession and have viewed the property to confirm. Do not give notice on your current rental until after exchange.

nekr0mantik

MaryNB said:

nekr0mantik said:

eddddy said:

It's worth clarifying a few things...

• The seller is taking a bigger risk than the buyer, if they exchange contracts before the tenants have moved out

• So the seller's solicitor will advise the seller very, very strongly not to exchange contracts before the tenants move out. (But some 'dodgy' sellers might be prepared to ignore their solicitors strong advice.)

Comments about breaching a residential mortgage and ending up owning a property with tenants, etc are misleading. In reality, this is more likely to happen:

• If the tenants are still in the property on completion day, the seller has failed to give vacant possession. So the seller has breached the terms of the contract - so the buyer does not have to complete. (So the buyer doesn't have to pay the seller any money.)

• The seller will probably have to pay damages to the buyer for beaching the terms of the contract

(However, it's likely to be very frustrating and inconvenient for the buyer that completion will be delayed or may not happen at all.)

Ah ok.

But as the buyer you risk on spending money on solicitors etc if they dont move out.

Granted as they breached the contract they would be liable it would still cost me to take out legal action against them.

My bigger worry is not having anywhere to stay if that were to happen as if I give notice to my landlord then they find new tenant then I would need to not leave and make them evict me which is not fun haha

Best solution is not to exchange until vacant but as its a landlord they wont be happy to have empty flat for long period but I suppose thats less of a financial risk then failing to have property vacant on completion and having me go after them legally.

That's why I said do not give notice until you exchange. It's standard advice. Yes you'll likely have an overlap in rent and mortgage payments (depending on the gap between exchange and completion, and your tenancy dates) but if you're buying a half million pound flat that's minor in the grand scheme of things. 

Tough on the seller. That's probably why they haven't sold it yet. They want no voids but they want to sell it as full market rate. If they limit themselves to BTL buyers they would likely have to drop the price. Given what the seller has told you (no notice on their tenants until after exchange) I would walk away now. The seller shouldn't have even entertained your offer if they are insisting on that. Either they are a clueless landlord or they are hoping for a clueless buyer. 

Do not exchange until you have vacant possession and have viewed the property to confirm. Do not give notice on your current rental until after exchange.

I have emailed the agent and told them to talk to seller about exchange after tenants moving out and I viewed.

If they are keen on selling and dont want to drop price then they can only do it that way. Like you said BTL investors wont buy at full market value at the moment. Thats why most of these were bought off plan by investors so they get discounts.

Noneforit999

£6k for a plasterboard dent and some door damage?

You have nothing to lose by giving it a go but if I were the vendor, I would just reject that offer immediately based on that justification.

On the other hand, if the vendor has not had other offers or others of a similar amount, you might get lucky. 

You have to be realistic with your expectations. Ours is 7 years old and there are a few marks in the plasterboard (we have a toddler), the odd door has a nick out of it etc. I certainly wouldn't be lowering the price because of them and unless I had no other interest, I wouldn't be paying to get them fixed to ensure a buyer offered me closer to asking. 

eddddy

nekr0mantik said:

I have emailed the agent and told them to talk to seller about exchange after tenants moving out and I viewed.

Normally, I always think it's quicker and easier to get agreement on stuff like this via the EA in the first instance. (Then tell your solicitor what's been agreed.)


But in this specific case, it might be worth doing it via solicitors. That way, you're alerting the seller's solicitor to their client's 'daft' plan, and they will probably advise the seller not to exchange contracts before the tenants have gone.

And maybe the seller is more likely to act on advice from their solicitor, than on a request from you or from the EA.

nekr0mantik

eddddy said:

nekr0mantik said:

I have emailed the agent and told them to talk to seller about exchange after tenants moving out and I viewed.

Normally, I always think it's quicker and easier to get agreement on stuff like this via the EA in the first instance. (Then tell your solicitor what's been agreed.)


But in this specific case, it might be worth doing it via solicitors. That way, you're alerting the seller's solicitor to their client's 'daft' plan, and they will probably advise the seller not to exchange contracts before the tenants have gone.

And maybe the seller is more likely to act on advice from their solicitor, than on a request from you or from the EA.

Yeah I can't do much with solicitors yet as I not paid the deposit and done ID check yet. My broker won't be able to do AIP again as previous one expired December until tomorrow anyway. 

TripleH

Having an overlap especially on an ex-rental property is not necessarily a bad thing. It gives you time for a controlled move and also the opportunity to do some painting of an empty property before you move your stuff in.

I assume you are in the same(ish) location as the flat so you can pop over easily on an evening?

You also have the opportunity now to save up to pay an overlap although I'd want a maximum of 1 month ideally

nekr0mantik

TripleH said:

Having an overlap especially on an ex-rental property is not necessarily a bad thing. It gives you time for a controlled move and also the opportunity to do some painting of an empty property before you move your stuff in.

I assume you are in the same(ish) location as the flat so you can pop over easily on an evening?

You also have the opportunity now to save up to pay an overlap although I'd want a maximum of 1 month ideally

Yeah I don't want completion to be same time as my lease ending as that's too much stress!
I was thinking 3 week overlap so then I don't have to pay for extra month. Or ask agents to see if I can just pay for 2 weeks extra rather than full month.

Yeah I live in same development but different building.