Buying a house with problem tenants currently in situ

eddddy

bargainbetty said:

Do not proceed with anything until you have confirmation of vacant possession that the property is vacant. You will inherit tenants unless they are out when you exchange contracts. You will then be facing a long eviction process at your own expense. 

As I mention above - that wouldn't happen in reality.

In reality, the seller's solicitor would very strongly advise the seller not to exchange contracts before the tenants move out. (The buyer's solicitor would advise the same to the buyer.)

If the seller (and buyer) ignored their solicitor's advice and exchanged contracts anyway, the buyer should check that the tenants have moved out on completion day.

If the tenants are still there on completion day, the seller would be in breach of contract. The buyer should tell their solicitor not to complete.

So the buyer won't own the property, and won't have inherited any tenants.



(Also, you've used the term "vacant possession" in a very ambiguous way. In a situation like this, that could cause confusion.)

macman

LHZ said:

HopefulFTB22 said:

Why do you believe them to be problem tenants? 

My understanding is that they are many months in arrears and that the owner has initiated the eviction process.

In which case, it could be at least another 12m before the LL can obtain vacant possession. So either tell them you cannot proceed until they do, or look elsewhere.
You don't even know when notice was given, and that stage alone takes 8 weeks before an eviction order can be applied for-for which process the courts are logjammed.
The agent works for the buyer, who pays their commission, so of course they want you to proceed ASAP.

LHZ

Thanks all for taking time to comment, it's very much appreciated.

The way it's looking, even if the tenants aren't a 'problem' it's possible that this could drag on and on and if I move forward now, costs will be incurred and it could be years before the property is vacant.

On this basis I will make the EA aware that my offer stands but that I can't proceed until the property is vacant. Given the situation I would hope the EA and vendor will be understanding.

canaldumidi

LHZ said:

Thanks all for taking time to comment, it's very much appreciated.

The way it's looking, even if the tenants aren't a 'problem' it's possible that this could drag on and on and if I move forward now, costs will be incurred and it could be years before the property is vacant.

On this basis I will make the EA aware that my offer stands but that I can't proceed until the property is vacant. Given the situation I would hope the EA and vendor will be understanding.

and in the meantime, start looking at other properties.

lincroft1710

LHZ said:

The way it's looking, even if the tenants aren't a 'problem' it's possible that this could drag on and on and if I move forward now, costs will be incurred and it could be years before the property is vacant.

On this basis I will make the EA aware that my offer stands but that I can't proceed until the property is vacant. Given the situation I would hope the EA and vendor will be understanding.

On this basis, you start looking for another property!


Don't worry whether or not the EA and vendor will be "understanding". Recognise that you hold the aces. The only other person likely to want to proceed with a sale would be a buy-to-let investor who would be offering a lot less for the property.

TripleH

Don't accept any attempts to pull the wool over your eyes about actually the property 'should' be empty in 5 weeks etc from the agents.

 They don't care about possible issues for you once they've got their money having said that they also would be happy to sell you another property if they see you are not going to fall for this but are still very proceedable

Exodi

LHZ said:

Thanks all for taking time to comment, it's very much appreciated.

The way it's looking, even if the tenants aren't a 'problem' it's possible that this could drag on and on and if I move forward now, costs will be incurred and it could be years before the property is vacant.

On this basis I will make the EA aware that my offer stands but that I can't proceed until the property is vacant. Given the situation I would hope the EA and vendor will be understanding.

Finally, someone who listens to forum advice!

I have read too many threads where buyers end up out of pocket thousands of pounds because they did not listen. Half the time the notice wasn't correctly served, or not served at all. Seemingly pressurised by the estate agent... I wonder why?

When you said the tenants were in rent arrears, my heart sunk that this would be another one of those threads, among thousands, where it ends 'but the estate agent reckons they'll be out in a few months so I've instructed my solicitor to begin the searches).

Good for you.

bouicca21

If it’s any help re timelines, the landlord of one of the flats in my block started eviction proceedings in or about July or August last year.  The tenants are still there and show no signs of packing up.

macman

The vendor and EA don't need to be understanding. All you have done so far is make an offer, and they have accepted it. Either side can rescind that any any time without penalty.

Tranboy

Depends also on what sort of tenancy agreement is in place as to how easy it might be to get them out. I probably have it wrong but can the new owner be liable to the seller for previous missing rent?