Buying a property with tenants in situ

[OnTheHuntForAHome]

So a house has come up in a location near us which we have been after for a while, near school etc.

However the tenants are in until July, anyone bought similar? What if they don't move out etc?

If they don't move out you will become their landlord on completion. If they haven't given notice forget it. If they were given notice they don't have to leave on expiry.

Well if you haven't even started the buying process yet, they should have vacated by the time you complete. In theory.
Can't force tenants out though, unfortunately. If they want to stay, because they can't find another tenancy for instance, They could delay your sale.

Don't exchange till they leave. It is perfectly possible to exchange and complete very close together, or on the same day even (though very stressful). Just be prepared to go into rented should they not move!

You won't be able to exchange til they leave. You won't just become their landlords as someone says above as your mortgage won't release without confirmation they're out.

If they refuse to leave the agent has to take them to court and get them evicted and that could take a very long time (i reckon up to a year with all the backlogs).

I'd check what the deal with them is (did they give notice or did the LL).

If you want to still go ahead then do so but be wary of the risks.

*sorry LL had to evict them not the agent

Ah, fair enough @Bells3032. Basically op can't buy it unless vacant. Not should they.

Current estimate for eviction is nearer two years even when it is allowed.

Your solicitor/conveyancer should advise you that you will need vacant possession, or no exchange. Mortgage companies usually won't release funds without vacant possession.

It is problematic. Most LLs know not to start marketing a property with tenants in it unless it is being marketed specifically to landlords.

As others say, you can’t exchange and a mortgage can’t confirm and pay out until the property is vacant.

The tenants will have needed to have been given 6 months notice because of Covid. It could be the 6 months expires then or it could be it expires later but they have said they will leave in July. Most do go when they say they will but you have no way of knowing. If they don’t go, once the full notice period is up, you can start legal proceedings to evict. As others have said it can take a year or longer. The people are then able to be there until formally evicted and the bailiffs arrive. There is no point feeling cross if this drags on and drags on...there is a legal process and it must be followed. LLs need to plan ahead and not be greedy and hope for rental income AND to market the property. Really it has to be one or the other.

Many solicitors will advise against proceeding and spending money on things like surveys becaue there is no knowing if exchange will be possible and mortgage offers expire.

I’d look elsewhere. It’s just too uncertain.

I've just sold two rental flats. One the tenant decided to leave as soon as he found another place to rent, the other did leave just ahead of exchange (at the end of his lease). He was a nightmare tenant but he did leave.
Sound out the agent about the tenant. If they are happy to have viewings they are probably more amenable to moving too. The majority will leave.

Thanks for the replies, usually I wouldn't bother but the house is literally what we have been looking for for months.

I'll find out if they've been given notice etc tomorrow. It's something I didn't ask today but the estate agent said something about their contract ending in July but nothing else.

Contracts don’t actually end as you might imagine. Notice still has to be given.

A tenant can want to stay on and for their tenancy to roll-on and even with fixed term tenancies notice is still required or the tenancy will be renewed.

Yes, push the EA on whether formal notice has been issued and when it was issued. EAs can be vague on these details so ask the Q in writing and ensure you get them to put the answers in an email too, even if they reply on the phone. It could be the selling EA is the letting agent and so the info can be accessed easily, or it could take a while for the EA to confirm the exact details if they have to go back to the seller, so do push for precise and accurate answers by asking the right questions and ensuring answers actually tell you what you need to know.

• when was notice formally issued

Sometimes tenants say they will vacate earlier, but they are under no obligation to do so. Remaining until the very last day of the notice period is perfectly reasonable and is their legal right. Most will go at that point but often they will perfectly legitimately stay until the end. It should only be the LL who has any dealings with the tenants and not you.

Did you meet the owner of the property who is the LL?

Dont get too attached to this property and do keep lookimg. The situation is far from ideal, especially if you are hoping tos ave some stamp duty. I would only proceed with this if you’re perfectly happy for it to go well beyond July and there to be no stamp duty gain.

In my view, LLs who try to sell with tenants in situ and who are marketing several months before formal notice expires (or even before they have given it) can be tricky to deal with. But your solicitor should point all this out to you..... it by then you may well be incurring costs.

Wise words above. The fixed term may end but unless the tenants leave, it automatically becomes a rolling tenancy and no one can stop that. Basically the agent is bullshitting you.

And it is NOT illegal for tenants to stay beyond their notice period. It only becomes illegal when the bailiff turns up. Two years hence at the moment.

@WombatChocolate great thanks for that