Buying a house with problem tenants currently in situ

NameUnavailable

Sounds like the vendor doesn't understand the problem in trying to sell a house which has tenants in.

They have sold for potentially less than they might have got, because of this issue. So, you wait 6-12 months (best) before the tenants leave and you can then proceed with the sale. Will the vendor then think hey, I can relist this for XXX more?

Exodi

NameUnavailable said:

Sounds like the vendor doesn't understand the problem in trying to sell a house which has tenants in.

They have sold for potentially less than they might have got, because of this issue. So, you wait 6-12 months (best) before the tenants leave and you can then proceed with the sale. Will the vendor then think hey, I can relist this for XXX more?

Agreed.

Especially if the market has gone up in those 12 months and they finally have vacant possession - wouldn't need to sell at a discount then.

Gazumping becomes more likely the longer the exchange process goes on for - and I think a troubled eviction is unlikely to be a quick event.

It would be ironic if they do eventually relist with the mentality 'the seller hasn't paid out for anything so they're not losing out financially'.

LHZ

Bit of an update.  Given the advice here and elsewhere I decided to back out of the sale.  I notice the EA has relisted the property for sale at £10k more than last time and as far as I'm aware, the tenants are still in situ.

Silver cloud here though, in the interim I posted my 21/22 accounts that show a significant jump in income so I can borrow more.  With this new budget I got an offer accepted on my (within reason - this one doesn't have it's own island and helicopter) dream house and am looking forward to relocating to where most of my teaching work is.

I got a 5 year fix at 3.25% on the residential mortgage.  Rather than overpaying I'm considering setting up a S&S ISA and paying into that for 5 years then using that to reduce down the capital debt on the basis that it's likely to outperform the 3.25% rate.  Actually, I should maybe ask this on a separate thread!!

TripleH

Congratulations. Glad things have worked out for you.

GDB2222

LHZ said:

Bit of an update.  Given the advice here and elsewhere I decided to back out of the sale.  I notice the EA has relisted the property for sale at £10k more than last time and as far as I'm aware, the tenants are still in situ.

Silver cloud here though, in the interim I posted my 21/22 accounts that show a significant jump in income so I can borrow more.  With this new budget I got an offer accepted on my (within reason - this one doesn't have it's own island and helicopter) dream house and am looking forward to relocating to where most of my teaching work is.

I got a 5 year fix at 3.25% on the residential mortgage.  Rather than overpaying I'm considering setting up a S&S ISA and paying into that for 5 years then using that to reduce down the capital debt on the basis that it's likely to outperform the 3.25% rate.  Actually, I should maybe ask this on a separate thread!!

Bear in mind that the ISA will have costs involved, so you’ll need to earn say 4% to equal 3.25% on the mortgage. 

Also, risk. The 3.25% is guaranteed. The ISA return could be anything within a large range.