Buying a home to live in that has a tenant in situ need advice

SneakySpectator

I'm going to view a property this week and the current owners have a tenant in situ, I've been tol that I won't be able to get a mortgage on the home to live in if there is a tenant already living there. So what's the best option for me? 

Should I just make my offer to the owner but only actually sign the contract once the property is vacant from any tenants? I absolutely do not want to get a buy to let mortgage and have a tenant to deal with. I just want to buy it and move straight in once everything has gone through. 

Tabieth

Do you know if / when the tenant is moving out? It can’t be sold with full vacant possession with a tenant in situ. So either the tenant is about to move out or it’s being sold as a rental with a tenant in situ. If it is the former I would not make an offer until the tenant is physically out of the property. If it’s the latter that’s not what you want. 

Myci85

Some landlords seem oblivious to how long it can take to evict a tenant, so they market the property for sale assuming they'll have moved out by the end of the s21. This is often not the case. 

Whilst you could make an offer, I wouldn't be spending any money on conveyancing etc or starting anything until you have seen for yourself the property is vacant. 

20122013

I would need some proof to show that the tenant is no longer a tenant, and not relying on ' no sign of the Tenant  at the property, you would need to see that the Tenant has served or been given a valid notice and accepted it.  I do not think utility bills are reliable indicators.  If there is a tenant in situ, the new owner will have a job to get them out and need all the correct paper work and resource to see it through etc. I only look at vacant possessions as too many unknowns.

Hoenir

You can obtain a mortgage offer with a tenant in situ. The transaction won't complete though until there's vacant possession. As the mortgage lender won't release the funds to the solicitor, who also works for them, not just you. 

SneakySpectator

Myci85 said:

Some landlords seem oblivious to how long it can take to evict a tenant, so they market the property for sale assuming they'll have moved out by the end of the s21. This is often not the case. 

Whilst you could make an offer, I wouldn't be spending any money on conveyancing etc or starting anything until you have seen for yourself the property is vacant. 

Thank you. I'll make it clear to the agent that I need the tenant officially out of the property before I sign anything.

eddddy

SneakySpectator said:

Thank you. I'll make it clear to the agent that I need the tenant officially out of the property before I sign anything.

More realistically, you need to ask what the tenants plans are for moving out.

For example..

• 1) Has the tenant given notice to the landlord to say they are leaving?

• 2) Or has the landlord given notice to the tenant to leave (e.g. served a section 21 notice)

If it's option 1, you can probably be fairly confident that the tenant will leave on the date they've specified.

If it's option 2, you might need to dig a bit further. Has the tenant confirmed/indicated that they will leave on the date specified?  Or are they likely to stay on and 'fight it out'? (Which could take 6 months or more.)

If it's option 2, and the tenant is there at the viewing, you could ask them. (But like with most people, they might give you an answer, but change their mind later.)


FWIW, posters here will often mention worst case scenarios - tenants who refuse to leave; it takes months to get bailiffs to get them out; they leave the property wrecked; etc - but in my experience, the majority of tenants leave amicably when a section 21 notice is served.

But you should obviously consider the worst case scenario when making your plans.

Yorkie1

Once the seller / EA has confirmed that the tenants have left, make sure to inspect the property to see whether it is in a decent state or not ... 

m0bov

Don't bother till it's empty.

RHemmings

Sellers who have a tenant in situ may be reluctant to exchange contracts promising vacant possession by a certain date. As they would legally be on the hook for your expenses due to that breach of contract. Hence, it's possible that the seller will delay exchanging while trying to get the tenant out. Which could be lengthy. 

SneakySpectator

m0bov said:

Don't bother till it's empty.

Well if I made an offer and it was accepted I could proceed with the mortgage application, but I won't actually sign anything until the tenants are out, the keys are handed back and the flat is empty. 

But the estate agent might be quite insistent on getting the ball rolling by starting the conveyancing process with my solicitor etc?