Unofficial tenancy?

[ChangeyMcChangeChange]

I'm looking to buy a flat, speculative at the moment, but I've seen one I like. The owner says they don't have tenants but 'friends staying there to keep it occupied while she sells.' I suspect this isn't true and they are just not telling the mortgage company as they don't have a buy to let mortgage. The people there seem pretty settled, lots of ornaments, wedding invites on fridge, full cupboards etc not just people kipping there for a short while.

What are these tenants rights, the owner says they'll sell it with vacant possession and just want to give a months notice as a courtesy and I think assumes they don't really have any rights due to their informal situation, but is this correct? What notice would they need? Do their rights as tenants supersede this idea of 'friends just staying'

Don't exchange contracts until the flat is empty. If the tenants refused to move out, there'd be a huge problem.
Your solicitor would be making this clear to the sellers solicitors once you flag this up.
This means the seller may well have a short period of owning a vacant property with no rent coming in, but that's not your problem.

No I absolutely wouldn't (my solicitor is v good anyway and wouldn't let me), and I'm not sure we'd get that far, as the seller is a bit vague about all these arrangements anyway. I just wondered if the unofficial tenants still have official rights. So if the owner gave them a months notice, could they turn around and say, no we're legally entitled to two months (or whatever)

Changey - you are right to be cautious. If money is changing hands the occupants are deemed to have a tenancy. Therefore it could literally take months for vacant possession to be achieved by way of court order and bailiffs etc if they refused to move out.

www.landlordlaw.co.uk/openns/tenancies-without-tenancy-agreements

Thank you VanCleef, this is much as I suspected. I have a little knowledge about this sort of thing (but very limited) but the vendor seems absolutely clueless which makes me nervous she couldn't do this properly and would be a nightmare to deal with

they are in for a shock if the tenants don't go nicely - they are unlikely to have protected any deposit and/or served tenants with relevant documentation which means any eviction notice they serve will be invalid. In any event, whilst they are there the property is in effect unsellable as no buyer in their right mind would exchange contracts before vacant possession is secured

even if they were 'official' tenants you'd be mad to buy this until they have gone, and no decent solicitor will let you. Landlords cannot end tenancies, only tenants and courts can.

this sillycow of an owner has almost certainly created a tenancy. Even if she sends a section 21 notice, without having issue lots of documents at the start and protected any deposit it will be invalid. And even if it was valid it takes six months to get tenants out. (despite what Shelter and the Guardian say, tenants cannot be evicted 'on a whim' or 'rapidly'.)

find somewhere else.