Buying a flat with vacant possession.

KiKi

What macman said, above. 

I wouldn't dream of exchanging until the property is vacant.  Exchange to completion is usually two weeks - why would the tenants move out in that time if they've not already moved before exchange?!  It's extremely risky.  To go down that route, go legal, have tenants who won't move...what a nightmare.  What happens if the court doesn't find in your favour?  Are you happy to lose all that money and be a landlord?  Just don't exchange until the property is confirmed as empty.  And be prepared to pull out if the tenants refuse to move.  It could take nearly a year for them to go.

DaveS23

KiKi said:

What macman said, above. 

I wouldn't dream of exchanging until the property is vacant.  Exchange to completion is usually two weeks - why would the tenants move out in that time if they've not already moved before exchange?!  It's extremely risky.  To go down that route, go legal, have tenants who won't move...what a nightmare.  What happens if the court doesn't find in your favour?  Are you happy to lose all that money and be a landlord?  Just don't exchange until the property is confirmed as empty.  And be prepared to pull out if the tenants refuse to move.  It could take nearly a year for them to go.

Thanks for the advice . I have read that it would be best to wait until tenants are out to do the survey , would this be wise ?

[Deleted User]

You're being ruled by your heart not your head, which is understandable, you're not listening to what you're being advised on.
Don't spend any more money until you see a S21.
Keep looking at other places because until that place is empty you're going to have a heap of hassle from start to finish.

macman

DaveS23 said:

KiKi said:

What macman said, above. 

I wouldn't dream of exchanging until the property is vacant.  Exchange to completion is usually two weeks - why would the tenants move out in that time if they've not already moved before exchange?!  It's extremely risky.  To go down that route, go legal, have tenants who won't move...what a nightmare.  What happens if the court doesn't find in your favour?  Are you happy to lose all that money and be a landlord?  Just don't exchange until the property is confirmed as empty.  And be prepared to pull out if the tenants refuse to move.  It could take nearly a year for them to go.

Thanks for the advice . I have read that it would be best to wait until tenants are out to do the survey , would this be wise ?

It's up to you, but, if you subsequently pull out, it's money wasted. Saying to the vendor that nothing more will happen until he serves notice also gives him some incentive to act, if he wants to sell to you.

Titus_Wadd

Maybe the current tenants could move into your old place?

Seriously though, keep looking for an easier buy, but leave your offer on the table and if the flat is vacated then full steam ahead with the survey.

Martin_the_Unjust

Your solicitor should not let you exchange unless your mortgage provider is happy, and if the property is not vacant the won’t be.

saajan_12

DaveS23 said:

eddddy said:

DaveS23 said:

That’s what I thought. If I understand correctly I don’t think I would be allowed to exchange contracts until vacant possession anyway ?

There's nothing to say you're not allowed.

But the seller's solicitor would strongly advise the seller not to do that. If the seller exchanges contracts (offering vacant possession), then the tenants refuse to move out before the completion, the seller would be in breach of contract - and you could probably claim any resulting financial losses from the seller.

And you'd be left in limbo if you've given notice to your current landlord. Your solicitor should advise you of those risks.

But if you and the seller both insist on exchanging contracts with the tenants still in the property, you wouldn't be breaking any laws or regulations.

 

Thanks , so if there was an exchange of contracts (offering vacant possession ) and the tentants did not move out by the agreed date and I had to find alternative accommodation / storage then I could claim those costs from the seller ?

At the point of exchange, the idea is you know the transaction is going ahead so serve notice on your current rental, book removals etc. If completion then falls through, you could be charged double rent if you stay on, or find another 6 month rental, then what if completion is back on track a month later.. or stay in a holiday home / hotel, but how long do you stay without possessions and can you still go to work or have a life? You also have to mitigate losses, at a very uncertain time and imagine havign to keep receipts of every little thing. Eviction of the tenants could take a year if they still haven't served notice, so at what point do you give up and buy elsewhere? In theory you could claim the difference if prices have risen, but how do you prove the properties are comparable. What if you've spent half your deposit on high interim accommodation costs, and it takes time to recover these from the seller. 

This is just to give you a flavour, but do not underestimate the hassle and frictional costs of dealing with a breach of contract claim, even if you're not the one that breached!

--
The above only covers costs after exchange / completion. More likely, the seller's solicitor won't let the seller exchange without vacant possession done (or very imminent!) However you'd still lose the survey costs, solicitor, searches etc - those are never claimable. So its up to you how far you go and how much you spend before you see progress on the tenants leaving. Technically they could wait until notice, perhaps re-serving notice if its wrong, court order, bailiffs, which could take anywhere from 6 to 18 months. This forum will strongly brace you for this possibility. It could also take much less if the tenants willingly leave, which many do. The worst case is a few £k and lost time, so might be worth it if you think the tenants will leave and are keen on the house.. purely a personal decision.

newsgroupmonkey_

Martin_the_Unjust said:

Your solicitor should not let you exchange unless your mortgage provider is happy, and if the property is not vacant the won’t be.

This.

People talk about "accidental landlords", but the mortgage provider won't release the money without vacant possession and the completion will be frustrated as it doesn't meet the contracts.

No-one in this scenario is about to become an "accidental landlord". It's bobbins.

eddddy

Martin_the_Unjust said:

Your solicitor should not let you exchange unless your mortgage provider is happy, and if the property is not vacant the won’t be.

That's a bit misleading.

The mortgage lender won't be bothered about whether the property is vacant at exchange of contracts. The mortgage lender is only bothered about whether it's vacant on completion.

And your solicitor will advise you of the risks of exchanging contracts with tenants in the property, but if you instruct the solicitor to exchange contracts anyway - they would do so.

It's up to you (as the buyer) to weigh up the risks.

Tiglet2

If you are obtaining a mortgage to buy this property to live in, the lender will be providing a residential mortgage, subject to vacant possession on completion.  Without vacant possession, no mortgage monies.

If you are purchasing with the tenants in situ, then you would need a buy-to-let mortgage.