Buying first home with LISA but tenant in situ

leightonr

Hi, I am looking to buy my first property using my LISA as deposit. I am buying for my first home and I intend to move in asap but there is a tenant in situ. What are the implications particularly as I am using my LISA and is that incompatible with buying a house with tenant in situ. Is it possible to do a "cash for keys" deal with the tenant that is linked to exchange of contracts? Thank you

theartfullodger

A sensible tenant would hold out for very very large amounts.

They might not be AST if early enough so no s21

Why would vendor sell with tenants?  Because he knows he can force eviction....

GrumpyDil

Using a LISA to purchase the property is irrelevant. What you need to make sure is that the tensnts have moved out before you exchange as if they choose not to move out at the Landlord's request it can be a little problematic shall we say.

General advice would be not to spend any money until after the tenants have left the property. Landlord's don't like this as it means they have no rental income during the sake process. 

Myci85

I wouldn't imagine you can use your LISA to buy a house with a tenant in situ, the property would need to be bought with vacant possession as you can't use a LISA for a buy to let. 
As others have advised, I wouldn't spend any money on solicitors, surveys etc until the property is vacant, as it can take a long time for a tenant to be successfully evicted regardless of what the vendor may try and tell you. 

cymruchris

I'd likely stay away from anything with tenants in situ - and focus on properties that will be vacant on completion without relying on said tenants leaving by X date. It can prolong your buying process when it all goes wrong, and in some cases might take many months, or even over a year before they pack their bags and leave.

Silvertabby

Empty possession and a full physical check of the property before completion, just in case the tenants wreck the place on their way out.  Then your first job, on your first day, must be to change the locks.

Of course, the tenants may be perfectly lovely people who will move out on the date requested and leave the house up to Armed Forces married quarter march out standard.....maybe.   

CosmicDaisy

I think it would be naive to buy a first home with tenants in situ and expect to move in asap. It could potentially take months for the tenant to leave if they don't want to go and decide to stay put. Only go for vacant possession. Out of interest, why are you focusing on properties with tenants in situ if you want to move in asap?

artyboy

IIRC, a LISA can only be used to buy a property with a mortgage. And the mortgage company will demand vacant possession as a condition of the mortgage offer. So this is a non-starter.

PRAISETHESUN

Another recommendation to only proceed with vacant possession. I've been the tenant in this situation before and whilst I didn't trash the place before I left, my LL didn't really give me any incentives to leave in a hurry so I left on my terms and timescale. I probably ended up delaying the sale by a fair amount.

FlorayG

If you intend to live in the flat then only an idiot (sorry) would buy it with a tenant in situ, because then YOU have all the hassle of getting said tenant out. Make an offer and say contract is subject to vacant possession ( and that is NOT tenant given notice to quit - that is tenant actually has moved out and gone and property is empty) and make sure to inspect the property the day the tenant leaves so that you  know they haven't left you damages to deal with

FlorayG

leightonr said:

 Is it possible to do a "cash for keys" deal with the tenant that is linked to exchange of contracts? Thank you

The landlord can do this but you can't, because you don't own it at that point.