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

Pobby

Having read more from the OP,I would like to apologise if in anyway I have insulted him.He comes across as a pretty decent bloke with probally some similar attitudes about accomodation as my own.

Sadly I find that more and more in society there is a fundamental lack of security that didn`t appear to exist 30 years ago.

Hugo you are indeed right to say that job security is rare and indeed the means to pay the mortgage cannot be taken for granted.

I will have to say that when I took out my first mortgage in the 70`s these things,in all honesty didn`t feel to be an issue.I certainly didn`t,at any time,loose sleep worrying about those kind of problems.

I find it sad that in this developed economy certain basic issues are not being addressed.As Jools has pointed out there are to many people and not enough housing.Also he is right to say that the system in Germany should really be inspected.

Imho,a society benefits greatly by the degree of security it`s citizens experience.There is no doubt that mental illness in this country as well as many developed countries is on the increase.In part,but not certainly in all cases,it is caused by the very lack of security that people feel.

Although it doesn`t effect me directly but the recent insane increase in property prices has taken my breath away and sadly we are already experiencing some of the fallout from that.

Hugo,you very may be a good landlord but I think you will have to agree with me that there are some real lousy ones out there making a buck with little or no regard to the well being of the tenant.

Going back to something I said earlier,when I was a kid I lived in a row of houses where some were owner occupied others were tenented.Those tenants lived there for decades.They could raise kids in a safe secure way.Not having to hold their breath each time the AST came up for renewal.

I personally think that the system today does not benefit the tenant.I,for one,would seriously think about raising kids whilst living in an AST.For a home is just that,somewhere that becomes familiar,secure,a nest and a place to settle in.

I think the system today will have huge ramifications that are negative for future generations.

EdInvestor

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.

Two months as mentioned.Doesn´t surprise me that landlords are putting property on the market with tenants still in situ (as long as they are on periodic with 2 months notice). The market is very messy and slow and buyers are tending to pull out because they fear prices will fall. It´s taking months longer than usual to complete a sale, meanwhile the mortgage still has to be paid.

Better to leave the tenants in and then give notice as soon as the buyer is confirmed serious (eg after the survey is done). The sale will take 2 months to process anyway and that´s plenty of time for the agent to find the tenant a nice new home. A win win for all sides. Can´t see why there would be implications for the price.

Catblue

And if the tenant does not allow viewings? How easy is it to sell a house that prospective purchasers cannot view?

And if the tenant refuses to move out at the end of the notice period? What if the vendor has to go through the courts to try to gain possession?

Would it still be a win win for all sides?

portsmouthali

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.

I've been in your situation and it sucks IIRC she has to give you a minimum of 2 months notice. 3 of my friends have all had this happen recently, I guess a lot of BTLers have overstretched themselves. A good & trustworthy landlord is a rare thing these days, tenants have no security whatsoever.

My grandparents rented their house privately all their married lives - over 50 years! Would never happen these days.

jpe20

Hi folks,

Just an update .... Looks like it is all off anyway as I have had discussions with the mortgage broker I am dealing with and he suggests that there is no way I can get a mortgage without "vacant possession" especially considering my special cirumstances.

Interesting to have read the past few posts. ASTs are a poor system which needs more revision as house moving is a very very stressful experience as I am begining to feel myself!!! Read a headline in the Express yesterday that house prices are on the increase again!! (not that I repect the Express alot!!). What a mess!!!

I tried the Land Registry website to try and find out what house prices are doing BUT all the information I could find was only up to Nov 2007!!!! I would really like to objectively know the state of the market now!

Anyhow thanks for the advice and good luck to you all.

jools

COOKIES

Isnt there a contract to sign with the terms of notice when you start renting? the landlord is entitled to a change of plan and if notice is given then tenants have to move on. its not unfair, although those in that situation may feel hard done by, its just the way things are if you choose to rent!

There is no long term security in anything these days, especially renting! we all have our problems and situations, no point going off on one at the OP because he doesnt fancy sharing a property with tenants and paying for the mortgage at the same time. I wonder how many of you are so quick to judge when you are unlikely to be in the OP's position yourselves. and as for the term "kick out" i knew exactly what the OP meant and did not get offended. talk about creating a storm in a teacup!!

joanna_johnson

JPE20....be very careful that the current tenant is in an AST and is not in a 'regulated' tenancy (google regulated tenancies). If you go ahead with the purchase then your solicitor will ask to see a copy of the rental agreement anyway.

Richard_Webster

Two points:

1. If the seller could easily remove the tenant by serving notice etc he would have done so so this may suggest that he is either:

a) really strapped for cash and can't wait a few months for the tenancy to end and for him to serve the notice and go to court or
b) the tenant is a pain and is likely to hang on to the bitter end and wreck the place just before he moves out following a court order.

2. If OP is a first time buyer, by having a BTL mortgage initially with a tenant in place, he disqualifies himself for the exemption from SDLT and will have to pay it at 1%.

john_white

I think it's all a bit irrelevant now as COOKIES has posted on a 2 and half year old topic.