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Original poster

Buying a house with a tenant living there?

28 replies

KatyMac · 23/11/2021 14:52

DD is looking for her first flat

We've only been looking 5 months but she is keens to get away from me Grin

We have (up until now) not looked at properties with tenants as we feel to buy a house and give notice to someone was a bit mean; however we are wondering if we need to be more practical

What do we have to think about if we consider this as an option - I am sure just giving notice isn't as easy as all that

Thanks

OP posts:
lastqueenofscotland · 23/11/2021 14:56

I think if she’d signed to live there say for another 2 years you’ll have to honour that. And your DD probably won’t get a btl for a first time mortgage.

Giving notice requires serving an S21 in line with either the end of the contract, break clause or 2 months notice on a rolling agreement.
If she doesn’t go then that’s a nightmare, the eviction through the court route has such a backlog you could easily be looking at over a year.

Original poster
KatyMac · 23/11/2021 14:58

And we can't ask the seller to give them notice?

I thought eviction would be difficult

Thanks

OP posts:
MurielSpriggs · 23/11/2021 15:06

And we can't ask the seller to give them notice?

Well you could, but giving notice is the easy bit. You would normally also want the vendor to see it right through to vacant possession so that you only exchange when they place is empty.

If you exchange and then ultimately complete with a tenant still in situ you are taking a complete gamble. They might politely vacate at the end of the notice period leaving the place spotless, keys on the kitchen table. Or you might spend a couple of years battling to evict them through the courts while you receive no rent and they trash the place.

parkrunner1977 · 23/11/2021 15:07

Some seller's will give notice to the tenant if it is to be sold with vacant possession, I wouldn't have thought that contracts could be exchanged in that case until the tenant has left anyway? I think they would also have to sign paperwork for the sale as well to say that they will leave? I wouldn't buy a property that has a tenant in place who will be staying as you have no idea what that person is like, they could be a nightmare which is why the landlord is selling!

Original poster
KatyMac · 23/11/2021 15:08

Yes it's a non starter really isn't it

Thanks - i was right with my initial "don't look at them" idea

OP posts:
Emelene · 23/11/2021 15:10

It depends if it is being sold with vacant possession surely? I bought a house recently and the landlady had already given notice to the tenants. They vacated the property before exchange.

ChateauMargaux · 23/11/2021 15:11

Solicitors do not advise exchanging with sitting tenants if at all possible. The seller should give notice and be responsible for ensuring vacant possession, unless you plan to become a landlord, even then, landlords often like to start a fresh with a new tenant or at least change the contract.

Rosemaryandlemon · 23/11/2021 15:16

Do not buy a property with sitting tenants, unless you want to rent out the property.

People don’t always just leave because they are given notice. People spend thousands of pounds evicting people. It can take years.

If the previous landlord didn’t comply with certain requirements you won’t be able to use the s21 process (no fault).

Thistooshallpsss · 23/11/2021 15:54

I don’t think you will be able to obtain a mortgage unless vacant possession is available on exchange of contracts. It’s much better for everyone if the property is marketed after the tenants have left

BathroomBuffalo · 23/11/2021 15:58

Yes absolutely, you need to have vacant possession. We bought a house that had tenants, and the vendor had to give them notice, and we couldn't exchange until they were out.

No reason not to look at houses with tenants, but the landlord must be agreeable to giving notice shortly after he's accepted your offer.

icelolly12 · 23/11/2021 16:42

If you give notice and your tenant can't find anywhere new in the given timeframe, then what will you do?! Renting is a nightmare at the minute

IglesiasPiggl · 23/11/2021 16:45

You are right to avoid properties with tenants. Not only are the issues with them not leaving, you also never know if they will damage the property during their departure.

SinoohXaenaHide · 23/11/2021 16:45

Don't look at them - they are only on the market for other btl landlords to buy as an investment. If your dd intends to live there she must insist that the vendors have vacant possession before signing a contract as eviction can take months.

idontlikealdi · 23/11/2021 17:13

Assuming your dad wants to live in the property? Don't touch with a barge pole.

thinkfast · 23/11/2021 17:17

I think it's fine as long as it's going to be sold with vacant possession, and you don't exchange contracts until after tenant has vacated. You might need to question the estate agent about the circumstances before viewing.

There's many reasons why a tenant may want to leave and a property might be put on the market as soon as they've given notice, instead of after they have left.

Xfox · 23/11/2021 21:20

Well I'd say its either someone who doesn't seriously want to sell, or someone trying to have their cake and eat it. Neither are sold bets for a buyer. Look, and offer if you want, but I'd not be spending anything on conveyancing etc until it is vacant, else you could find the tenant won't / can't move and you are still waiting to exchange a year down the line.

VanCleefArpels · 23/11/2021 21:31

Even if the vendor gave the tenants notice as soon as they accepted an offer it could be another 12 months before the tenants physically leave the property and therefore allow the vendor to sell with vacant possession . If you DD is prepared to wait that long (and run the risk of the place being trashed in the meantime) then crack on

Original poster
KatyMac · 06/12/2021 12:40

About 50% of the flats on the market currently are tenanted

Ita very frustrating

OP posts:
cluecu · 07/12/2021 08:25

The house we bought was tenanted and it was the tenants who showed us round. However they'd already been given notice with plenty of time so we didn't have to worry about that (the terms were on vacant possession) . I did feel a bit weird looking around as I felt guilty that it was their home but not their choice to move. However they were lovely and said well if you don't buy it someone will, its just one of those things.

When we went for 2nd viewing (offer accepted etc) they had found a new house to live in which I was relieved about. I wasn't sure what would have happened if they hadn't found somewhere.

I wouldn't rule properties out but I would certainly want it to be on the understanding that the property will be vacant.

Original poster
KatyMac · 07/12/2021 11:45

It does seem mean

I am guessing with vacant possession they move out before exchange otherwise you could be stuck with them

And how frustrating is it that they say "first time buyer or buy-to-let" it's a bit misleading

OP posts:
Thistooshallpsss · 07/12/2021 12:23

Your solicitor will not allow you to exchange contracts without confirmation that the property is vacant. I would want to physically check myself as well.

EdgeOfTheSky · 07/12/2021 12:51

You won’t get a mortgage agreement for any flat with tenants still living there.

Eviction could take a year.

If landlords thought their tenants would it could just disappear on the sale timetable, they wouldn’t be advertising the flat as having tenants, because it brings the price down.

I looked at one house with tenants… it was full of their packing boxes and they were FTB who had exchanged on their new home.

Whammyyammy · 07/12/2021 13:03

Doubtful you'll be able to exchange with a sitting tenant, but I'd avoid. She could end up with a disgruntled non paying tenant

Original poster
KatyMac · 07/12/2021 16:23

It's frustrating you see the pics and the floorplan and only at the bottom of the description is "currently tenanted "

OP posts:
witsendeverytime · 07/12/2021 17:28

I've sold property that had tenants. I have notice to both and one vacated as soon as he found another place (so earlier than the notice I head given him) and the other moved out too - though he had been a non paying PITA so was really relieved he did actually go, though he did cause some damage before he did which I had to fix. Both were out before contracts were exchanged.
I've also bought a tenanted flat as an investment so took over the lease agreement. They lived there another couple years until I decided to sell.

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