Tenants have not been given notice - What do we do?

[unCliche]

DH and I (FTB) are currently in the process of buying a house that's tenanted. We put in the offer beginning of Nov and were hoping to complete by Feb - our offer and vendors acceptance was conditional on this.

We've asked multiple times about when the tenants are leaving and have never gotten a clear answer. When we saw the estate agents two week ago, we asked again and from what was implied, it seems that the tenants have not been given notice because the landlord doesn't want to lose out on rent in case the purchase falls through!

Just found out that landlords have to give six months notice due to COVID. There is no chance we can complete by Feb if they weren't given notice in Aug.

We're in no hurry to move but the landlord should have known this before putting the house on the market. What do we do? Pull out of the purchase? Ask for money off knowing we'd have to wait months to complete??

I am so annoyed!

@unCliche
Your solicitor should be able to get confirmation so we’ll done for emailing them. EA’s can be good but for things like this solicitors really need to get involved as they ask the right questions.

It’s not unusual to sell with tenants as sometimes there is a buyer who wants to rent out the property so a sitting tenant is a good sell.

Stand by your response. If they are unable to confirm the tenants will be out in January please walk away because there is little chance you will be in in February. Tenants can say they are going then at the last minute refuse as they can’t find another home so courts and sheriffs have to get involved. I have seen it happen to a family member and I would never ever touch a property unless it was vacant way before exchange time.

No reputable solicitor acting for the landlord/vendor would allow exchange to proceed until the property is vacated. He can't give vacant possession until the tenants have gone and you wouldn't put your client in that perilous position at exchange.

I've bought a property in this situation before (tenants were given notice as conveyancing progressed and we viewed it to confirm it was vacant before we exchanged) - it went fine and it's a gamble that I'd be prepared to take again. But in your situation, I'd walk away - the landlord is trying to have his cake and eat it - I can't see it ending well for you.

@Goldensnitchy

Don’t usually like generalising but...never trust estate agents. They will say whatever they need to to get the sale through. Keep applying the pressure through your solicitors.

This.

I agree buying a house with tenants isn't advisable, it's taking months to get evictions approved at the moment too.

I'd be wanting confirmation RE notice dates, but are you happy to wait 6 months, which may turn out to be longer?

Things are looking bleak for us I'm guessing. For the tenants to be gone by next month, ideally they would have to find a place by this month. If they're students that could be even harder.

Our current neighbours also bought a tenanted house and I remember the tenants were gone way before they moved in. By now the tenants in the house we're considering should be gone too right??

@PowerslidePanda I would have taken the chance as well if the notice period was 2 months, but with it being 6 months, I'm just not sure it's worth the risk anymore.

Why should the tenants leave before they legally have to? If my landlord put my flat on the market and served me 2 months notice I’d remind him the law currently says 6 months, I would look for a new place but I wouldn’t be rushing to do it within 2 months if I didn’t legally have to. The tenants aren’t obliged to accommodate your purchase. I’m also in the process of buying a flat and I wouldn’t expect tenants in any flat I offered on to do it either (but then I’d never try and buy a flat with tenants in).

@namechangeforfriday I'm a tenant myself and absolutely agree. Hence why they should have been served notice six months ago. It's not my fault that they haven't and if the vendor is pushing to complete by Feb then you would think they'd have sorted all of this in advance.

landlords can't end tenancies, only tenants and bailiffs (via courts) can. The vendor's 'cake and eat it' policy is completely unworkable in the current situation, and was risky even before covid.

unless the tenants want to move on, you are taking an enormous risk. Sadly - cut your losses now.

I have just sold a flat with a terrible tenant (paid first months rent then nothing, I had noise complaints from the first week etc). Anyway I sold it (luckily to first viewer) and was afraid he wouldn't move. He did, leaving all the doors and windows open and taking the parking permits.
Anyhow - I had to provide proof he was leaving and buyer refused to exchange until he did.

I agree with that, the vendor and the estate agent have really ballsed up here!

According to the estate agent, notice was served in October or November (but we still haven't been given a specific date).

We're back to property hunting again. We now have viewings for Monday but you're all right, we may have to cut our losses on this one.

@Pipandmum that's now another worry. What's to say that the tenants won't be bitter and choose to leave the house in a horrible state. We spoke to the estate agents and he said that the vendor isn't legally obligated to have the house clean and it's being sold "as is".

What's to say that the tenants won't be bitter and choose to leave the house in a horrible state. We spoke to the estate agents and he said that the vendor isn't legally obligated to have the house clean and it's being sold "as is".

Point out to the estate agent that this works both ways - your offer was based on the condition of the house at the time you viewed it. So (if you do continue with the purchase) you need to view it again once it's vacant to confirm its condition - and if it's deteriorated, you drop your offer accordingly. In practice, the landlord will sort it once you threaten that - remember that if you decided to walk away, they'd need to sort it out to get it back on that market (and they're then in the situation they're trying to avoid in the first place)