Tenants buying house have asked me to pay for investigations and repairs

[Wonderifitsme]

Have not sold a house before and have no-one to ask on this.

I moved abroad a couple of years ago and rented my (v nice) house to some nice tenants. They wanted to buy the place and I agreed, at a slightly lower price than the estate agent valuation range for the ease of having a secure sale etc (think valuation range 400-450, agreed 390).

they have had a survey, great, which has come up with an internal leak in the upstairs ensuite, possibly making a damp issue in floor. They have asked me if I am willing to pay for further investigation and for costs of repair.

Gut feeling is that this is not right. Surely costs of further investigations are borne by potential buyers and then you negotiate on price. Since I agreed a price at below 3 estate agents’ estimates I’m loath to renegotiate further. But are my instincts right? Tia

Far too many are ignoring the fact that OP is still their landlord and must fulfill those obligations irrespective of the sale.
"Don't want to, you pay for it" doesn't fly for a landlord in regard to leaks and damp.

If the house has a leak, they could then pivot. They’re your tenants, so they can request their landlord repairs the leak to avoid mould. And if they’re able to prove mould perhaps they’d be inclined to withhold some rent.

Personally, I’d ask them to get 3 quotes to repair, and indicate it’s something you’ll consider fixing. Then once you have the quotes, I’d reduce the price and leave them to fix it. Usually they’d pay for the investigations then request a discount for the repairs.

Ultimately, a tenant has told their landlord the property has a leak which requires repair. How does that make them a CF?
The sale doesn’t change this basic fact.

I’d politely decline, I’d send them the valuations from the estate agents and just say you can’t spend money or reduce the price any further.

If you pay for investigations and then they still pull out you’ll need to declare the result of those investigations to any future buyers. So I wouldn’t

I bought a house which had insufficient purlins in the roof, because slate had been replaced with concrete, I couldn't get a mortgage until the work was done, so I arranged for the work to be done while the original owners were still in the property. It worked out very well- so less than traditional standpoints on repairs being done are not ridiculous actually.

Landlords cannot just politely decline to rectify leaks and damp.

Ask the tenants why they hadn’t let you know about the leak, and suggest you go halves

Asking to go halves would be unlawful.

The leak has nothing to do with the sale. The OP is required to mend the leak promptly as the landlord. That’s it.

So they are really negotiating hard?
Fair enough.
This is when you go back and say that it's best you put it on the open market.
They are taking the piss.

Surely costs of further investigations are borne by potential buyers and then you negotiate on price.

@Wonderifitsme That's what happened when we bought our house. We had the survey done and some issues were uncovered. We went back to the seller and negotiated a discount on the sale price.

You've already given them a substantial discount though, so I'd point that out and perhaps offer a small discount (to cover the investigation). Or not if you feel that you've already lowered the price enough for them.

I love how everyone is saying they've had a £60k discount - that's vs the top of the valuation range. The lower valuation was £50k lower so maybe it's only £10k. And if the seller didn't instruct an agent before the tenant agreed to buy they are saving a good proportion of that in fees.

You're their landlord. That is current fact. You have a legal responsibility to fix/repair etc.

That they may buy the property - theoretical. Discount - also theoretical.

You have to work based on fact and legal duty, not theory.

There is a difference between this situation and a normal sale.
The buyers here are tenants, paying rent, and as such should have the leak repaired by the landlord, ie OP.

@WiddlinDiddlin Good point. It probably makes sense for the OP to fix the leak and then go from there. If it doesn't work out with these buyers, she can always put the house on the open market.

I would do this.

Seeing as they’re tenants; they presumably knew about the leak. It’s not like it’s a house they’ve viewed once for a single viewing; they probably know the house better than you do. I wouldn’t be giving any further discount and if they’d rather move out, that’s fine.

You're still their Landlord atm, aren't you legally bound to do it anyway?

an internal leak in the upstairs ensuite, possibly making a damp issue in floor.

It's not at all clear that the tenants would have realised there was a leak.

This is really quite bonkers.

So lets say you kick out the tenant - that's likely to take months and months now - during which time the landlord has a legal duty to fix damage/leaks etc.

Then it could stand empty for ages and not achieve the agreed price the tenants have offered.

It also cannot be re-let within 12 months of evicting the current tenants if you've chucked them on the grounds you're selling.

Selling with tenants in situ is going to slow things down/devalue the property.

And even if you do all that you REALLY still should find out if there is a leak and fix it if there is.

So booting them out to sell it on the open market is going to take longer and at the very least... save nothing, but most likely, cost more.

@Wonderifitsme honestly, in this situation I'd keep it simple as you aren't on the spot to oversee what's going on.
Sold as seen is very fair when selling at a significant discount to a tenant.
If they don't want to buy it on that basis, you will put it back on the market at the higher asking price and you then arrange investigation and repair as their landlord.
They will then have to enter the open market and offer again if they still want the house, and you can then add in your costs to what you are prepared to accept.
Job done!

Sold our house recently, survey turned up a damp reading, so we dug up the floor, no leak in the pipes, damp specialist said it’s the humidity from the washing machine and condenser dryer, then suggested a hydrostatic fan. We told the buyer but didn’t offer to pay out more following 2 specialists.

Currently selling our rented house to the long term tenants and I have a horrible feeling the OP’s tenants may be painful, like ours, although as landlords, it’s our obligation to carry out repairs, even if caused by the tenant. I’m fed up of mine, they’ve pissed about so long starting the buying process, we’ve had to renew the gas safety certificate and the insurance. Should have completed the process months ago. They sent me stupid emails re is there a telephone pole on the land? Look outside. No. What fuels the gas central heating. Seriously? You pay the gas bill! Is there decking in the garden? Have you been outside in 9 years?! They’re getting the 5% landlord deposit and if they don’t hurry up, I’m tempted to go on the open market, it’s in a very lively area for selling, there is barely anything else for sale round there. I empathise with the op, although for ease, I say get it sorted.

I am a landlord and I would fix it. Apart from your legal obligations the alternative could be asking them to move out so you can get the house ready for sale and then the house lying empty (with no income) for a year or more. If this were me I’d be counting my blessings.

You are currently their landlord and should fix the leak.

I would get the leak fixed and tell them any further investigations come out of their pocket and there is no room for any further renegotiation of the already substantial discount