Thinking of buying a cheap house but it has a "Tenant in situ" ... implications?

jpe20

Ooooppps forgot to say I agree with the other poster that "ownership" is a relative term. Tenants in a way "own" the home during the stated period of their tenancy. Then the bank/BS owns your home while you're paying off your mortgage. Then once that is paid off you still do not legally own it as you hold the "freehold" on behalf of the Queen who is the real owner!!!! ok bit tongue in cheek but I think it is true in part at least because I heard some guy talking about this nonsense on the radio a few months ago!!!

Jools

neverdespairgirl

jpe20 wrote: »

Then once that is paid off you still do not legally own it as you hold the "freehold" on behalf of the Queen who is the real owner!!!! ok bit tongue in cheek but I think it is true in part at least because I heard some guy talking about this nonsense on the radio a few months ago!!!

Jools

<gropes around in memory>

Under Common law, the Crown has radical title of all the land in England and Wales. The Crown grants an estate in fee simple, otherwise know as freehold, to people, who can alienate that at will (meaning, sell it, for example), mortgage it, and dispose of it in a will.

HugoSP

Pobby

Don't wish to belittle your or anyone else's problems.

But the OP is posting for advice on how to manage a situation he may or may not take on.

He is an individual who simply wants to examine a possible opportunity to find himself a decent place to live, and has been condemned as a heartless feind intent on reaking havoc on the security of tenure of some poor defenceless tenant.

All tenants have limied security of tenure, that is life,

Just in the same way that job security is now a luxury
Just in the same way that our mortgage paying abilities cannot now be taken for granted. Those with mortgages are just tenants with huge debts, and the prospect of a repossession is much, much worse than the prospect of your LL taking the house back with 2 months notice.
Just in the same way that none of us can take our health for granted.

So, you see, it is quite easy to take it out on the poor person who may be thinking of taking on a house with tenants then serving notice on them to gain posession.

But is he responsibe for all the problems you have had thrown at you? I think not.

So lets all have the decency to treat him with respect shall we?

jpe20

Thanks HugoSP for the support.

Found out a little more today. The landlord in question is selling another property nearby with tenants in situ for 30K less than market value. Tenants in both properties moved in just before christmas on a 6 month tenancy agreement so it would be July say at the latest before the tenants have left. So it seems likely that the landlord is in financial trouble and needs to raise cash or he senses the looming house price crash and has now got cold feet. So it is unlikely now I guess that this is being sold because of a problem tenant.

I have not viewed yet as I need to do some phone calls to the mortgage broker I am dealing with to see if it is possible to go ahead.

Early days yet .....

Jools

Doozergirl

You could always try offering to pay the tenants' fees, first month's rent elsewhere etc for an early termination of their contract

If you are sure they are £30,000 underpriced, I'd do it!

jpe20

Yeah it is one thing to consider a cash incentive for them to leave if they show signs of being awkward. Then again if the current landlord had any sense he would do that!!!

neverdespairgirl

jpe20 wrote: »

Tenants in both properties moved in just before christmas on a 6 month tenancy agreement so it would be July say at the latest before the tenants have left.

July at the latest, unless you have to go to court to evict them - then it could be more like October.

HugoSP

Bear in mind the following:

1. If the tenant is half decent then they should be paying rent up until they leave.
2. If you view the house have a chat with the tenants if you can and try and get them on your side.
3. Find out what their plans are and make it known to them that you would want to honour the 6 months AST, but would be flexable if they found somewhere sooner, ie not charge them rent after they moved out. That way they know they've got the 6 months but if somewhere came up before they could take it and not be out of pocket. Ideally they would find somewhere on the day you completed, then they would pay their LL up until completion day but not have to pay you anything as they are not there.
4. As I said before, try to establish who holds their deposit. It should be protected under a Tenancy Deposit Scheme. You will probably need to take this over from the owner.

On a personal note, and speaking as a LL myself it seems that they are better shot of their LL as he has no strategy and has probably taken on more than he can handle. So I think that the OP will actually be doing them a favour by going in there, getting an absolute bargain and managing the tenants' transition to a new dwelling in a sensitive way

secondtoughest

I'm in a similar situation to the OP's 'tenant'.

My landlady has informed me she is selling the house to a friend. It isn't going on the market. I had a AST for 6 months - this is my 9th month here.

Do I get the one month's notice and that's it? I'm gutted as I like it here a lot.

Leightonian

secondtoughest wrote: »

I'm in a similar situation to the OP's 'tenant'.

My landlady has informed me she is selling the house to a friend. It isn't going on the market. I had a AST for 6 months - this is my 9th month here.

Do I get the one month's notice and that's it? I'm gutted as I like it here a lot.

You get two months notice , and sorry to hear your situation:beer: