Buying a house with problem tenants currently in situ

Slithery

Tranboy said:

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?

Maybe if there is still a valid tenancy in place, but seeing as the OP won't be progressing this purchase any further until after the tenants have left it isn't an issue.

newton345

LHZ said:

After many months of trying (being out bid etc) I've finally got an offer accepted on a house. The owner is currently in the process of removing the tenants. Everyone I speak to is saying I should be cautious as I could end up inheriting the problem tenants. The agent is keen to get the ball rolling and before I start paying for solicitors etc is there anything I should be aware of? If the tenants hang on and drag their feet am I going to incur unforseen legal costs? Any other advice greatly appreciated.

Hi we were in a similar position a few months ago. The Tennant's did leave when they said they would but the house was in terrible condition. Our mortgage under valued it and my actual surveyor called me after to say I was over paying. My point is that a house that's been rented out for years won't be as well loved as a house that's been owner occupied. Make sure you view after the Tennant's have left before exchange

NameUnavailable

If you are buying with a mortgage, the lenders won't lend the money unless the property has vacant possession.

user1977

NameUnavailable said:

If you are buying with a mortgage, the lenders won't lend the money unless the property has vacant possession.

Well, yes, but the OP won't want to buy without vacant possession anyway - it's standard that you get vacant possession at completion (unless you actually want to have the tenants remaining in situ).

MobileSaver

LHZ said:

Everyone I speak to is saying I should be cautious as I could end up inheriting the problem tenants.

Friends of mine bought a place with problem tenants thinking they'd be able to get them out quickly...

I think it's now been six years and the problem tenants are still there paying a pittance in rent; the whole sorry debacle will finally be heard in court next week.

As others have said, my advice would be to keep looking for a different home; this one could be a nightmare and drag on for goodness knows how long.

saajan_12

It *could* be a risk for any tenant, as they have the right to stay until properly evicted by a court, involving exacting notice requirements and a long court backlog. 

Having said that, in my experience lots of tenants to just play ball and leave upon receiving notice / being asked nicely if they can afford it. On this forum we probably see more of the cases where it doesn't. 

HOWEVER in this case, if you say they are already 'problem tenants' and not following the AST already, then the risk is MUCH higher. So advice to not proceed until the tenants are out stands. In the meantime, continue to look elsewhere and keep this on the backburner, for whichever happens first (find another place or tenants leave this one). 

kirtondm

You can of course get a bargain once the tenants have left. I bought a place that had been superficially trashed but only needed new carpets and paint (10 year old house) I bought if  for less than the original price Paid 150k  and sold it 2 years later for 60K more ( I spent 3k ) on doing it up.

lookstraightahead

Our landlord came round and discussed that she wanted to move back in, so slightly different story. We were in the process of buying anyway but she was so thankful that she could move in without a hassle she bought us a massive bouquet. I think she knew how difficult things could be.
She was so lovely and we keep in touch now. She did know though that there could be hassle for years.

LHZ

Bit of an update. I spoke to EA and they confirmed that the tenants were in arrears and that the landlord had begun the eviction process at the start of March. The end of notice period is 8th April. No court date has been given yet. The EA said he imagines the process taking up to 7 months worse case scenario. He also said that there were a number of similar cases ongoing within his portfolio.

Anyway, I said I've been advised not to proceed until the tenants are gone and he said that the vendor is likely to want to put the house back up for sale in that event. He said that she would want some commitment my side such as swapping solicitors details to draw up a memorandum of sale but that we wouldn't proceed further, and incur costs, until tenants were gone.

How does this sound? Is there a soft option for me to give the vendor some security or am I being dumb by even entertaining it? For what it's worth, I really like the property and I managed to get it at the asking price. I had bid £10k over asking on a similar property recently in the same street and got outbid.

babyblade41

Just move on from this one.  Vendor may well put it back up for sale but will still come up against the tenant problem  with another buyer.

Ask EA if they would come back to you as and when the property is vacant but don't rely on his worst case scenario of 7 months.

I evicted a tenant pre covid who was in arrears and it took over 12 months & that went pretty smoothly 

Look for better properties. Vendor will only be able to sell to investor at a lot lower price with. bad tenant in situ