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Buying a tenanted residential property

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Author Topic: Buying a tenanted residential property  (Read 137 times)
Newbie
Posts: 5

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« on: May 12, 2022, 09:36:07 PM »

Hi,
We are buying a residential property to live in
Now that everything is ready for exchange we are told that the tenant has decided not to move out.
The tenancy agreement is already expired two months ago and she has stopped paying rent since.
Now we would like to know what happens if we complete the purchase of the property with the tenant still living in it?
I assume that in order for us to be able to evict the tenant we first need to sign a new tenancy agreement with her and give her a notice after a few months. Is that right?
And what if she rejects signing a new tenancy agreement with us? Can she?
Any advise would be really appreciated.
Hero Member
Posts: 718

I like property

« Reply #1 on: May 12, 2022, 09:54:14 PM »

I assume that in order for us to be able to evict the tenant we first need to sign a new tenancy agreement with her and give her a notice after a few months. Is that right?

No. You take over the rights and responsibilities of landlord from the seller. The only formal thing you have to do is serve appropriate notice that inform the tenant you are now landlord. You can use any notice the existing landlord have served assuming it was and still is valid.

Having said that, there's no good reason for you to complete without being assured of vacant possession. There's so many potential pitfalls here. Tell the seller to sort it out. If you can't or don't want to wait, find a different property.
Newbie
Posts: 5

I like property

« Reply #2 on: May 13, 2022, 12:32:17 AM »

Thanks for the response.
The current landlord already served the notice and it might go to an eviction process very soon.
Quote
There's so many potential pitfalls here.
What pitfalls? Could you please give some more details?
Global Moderator
Hero Member
Posts: 1531

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« Reply #3 on: May 13, 2022, 09:20:18 AM »

This is the kind of nightmare that should put anyone off buying such a property.My advice would be sign nothing more until the place is vacant.I  agree with KTC,start work on Plan B just in case. A savvy tenant can string out the eviction process,and there are currently big delays in many legal  proceedings.Personally,I would be dropping out.
Global Moderator
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Abuse Officer

« Reply #4 on: May 13, 2022, 01:36:12 PM »

At the highest level - for you - this is simple... you / your Solicitor simply insists on vacant possession. Anything else should imply your withdrawal. You have no desire to become a Landlord, especially of a property where the Tenant is an already-known bad egg (by that I only mean not currently paying rent). When you insist on Vacant Possession there should be a date by when too.

It's a shame some kind of ús penalty for the Vendor could not have been negotiated at an earlier stage... that would have oiled the wheels I bet. If I was buying a property occupied by a Tenant, and I wanted Vacant Possession, then it's something I'd have my Solicitor attempt... I'm too wary of it going wrong... a gullible Vendor might easily agree to that and, then, ker-ching!

What you don't do... just in case you're in doubt... is Complete on the purchase with things as they are. Surely that's the road to the worst of all worlds?
Global Moderator
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« Reply #5 on: May 13, 2022, 01:47:28 PM »

I think your solicitor would be obliged to warn you about the risks involved in such a purchase,so did you disregard this?
Newbie
Posts: 5

I like property

« Reply #6 on: May 15, 2022, 10:40:39 PM »

I know that everyone is warning us not to purchase the property with the tenant still living int it, but our situation is that if we don't complete this purchase we most probably won't be able to buy ever anything else as the interest rates have gone up three times since we got our mortgage offer and our offer will be expired in just 3 months.

We are not the youngest people and this is most probably our last chance to buy a house.
That's why we still consider the option of buying this property even under current circumstances.

Now the question is:
whether we can complete the purchase and continue the eviction process that the current owner hast started or we need to restart the eviction process from the beginning. 
Also we'd like to know how long maximum the eviction process could take for a single mother with 3 kids and on benefit.
If it takes maximum up to a year we are happy to go ahead with the purchase and cover the costs.
Jr. Member
Posts: 77

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« Reply #7 on: May 15, 2022, 11:31:27 PM »

You've asked the same question in different places and everyone has the same response - don't do it.

You're about to lose a huge amount of money and, from the sounds of it, commit mortgage fraud.

The seller is the problem.
Move on.
Hero Member
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« Reply #8 on: May 16, 2022, 12:33:04 AM »

Multiple forum worth of No's and not a single Yes for a reason...........
Global Moderator
Hero Member
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« Reply #9 on: May 16, 2022, 08:35:23 AM »

Please go to a mirror and check-is there a handle growing out of one side of your head? Report back with your findings.
Global Moderator
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Abuse Officer

« Reply #10 on: May 16, 2022, 09:27:52 AM »

If it takes maximum up to a year we are happy to go ahead with the purchase and cover the costs.

Your mortgage would be a residential one, though.

But someone would be living in the property and - be expected to - be paying you rent.

Even before you start you would be doing things wrong, right?

Find something else.
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