Tenants in a property for sale

[Paragon6]

I just wondered if anyone knew the common practise or have been in the same boat.

We're in the process of buying a flat which has tenants in at the moment, we were told they need 2 months notice to move out which is fair enough but at what stage would they be given notice?

We've asked the estate agent twice who has avoided the question and our solicitor has asked the sellers solicitor and not had an answer.
I completley understand not giving notice as soon as an offer is made as things can go wrong, but we're pretty much good to go our mortgage is approved, searches back and paperwork signed. Surely if they're waiting for us to complete before giving notice that's quite a big delay they would have to tell us about? Or am i just a FTB being niave?

Thanks so much for any help!

Landlords often choose to sell when a property becomes vacant. Or give the tenants the opportunity to find alternative accommodation by talking to them and saying that they would like to sell the property at some point in the future before they urgently need to sell. Because it is difficult to rent in the current climate tenants may not be in a position to leave even if they are happy to, due to competition for properties and rents being high, especially if they have pets/children/special circumstances.

I agree that you are right to be concerned and even more so as the agents and solicitors have both ignored your perfectly reasonable question.
Even if notice has been given (it probably hasn't been as they would have told you), the tenants do not have to move out in 2 months. They can stay until evicted if necessary.
Ideally, don't buy somewhere with tenants and absolutely do not exchange until they have left and you have inspected the property. You do not want to own a flat with tenants who refuse to move out. The seller is entirely at fault here for being greedy and wanting to sell and continue to take rent.

my understanding if you live in the uk is that if you take over a rented property you have to honour the rental agreement - ask them when the rental contract expires

I'm in the reverse of your situation. I've been a tenant in the same house for 7 years, and my landlord wants to sell and issued the section 21 notice last week.
We are in the process of buying a new build house so won't be vacating the rented property until we have completed, which is going to be longer than the 2 months notice. Advice from my solicitor has been to stay at the same property as we have exchanged, but are due to complete at Christmas.

Our landlord is desperate to get us out asap, but as pp have said, there is really limited rental properties, plus we have 2 dogs, lots of potted plants and 2 cars, so need somewhere that allows pets, has a garden and parking and will rent for less than 6 months.

Hi - No exchange needs to be served 2 months before exchange because the house needs to be empty when you exchange, you are not going to exchange otherwise.

As I mentioned in my post: You can also make a condition of you continuing with the purchase that notice is served, have a chat with your solicitor and see how far are you from exchange and then work it our backwards to see if now would be a good moment to serve notice.

We got to the point of exchange on a house that was being rented out by the room - popped over a few days before completion and one of the tenants was still sleeping on a matress in the top floor!

sorry I meant: Hi - No, notice needs to be served 2 months before exchange because the house needs to be empty when you exchange, you are not going to exchange otherwise.

I am sorry, I do not believe this - you have to go check the place is vacant before exchange,
property not vacant = no exchange

there is a legal framework in place, please do not give this kind of notevidenced bullshit to the OP.

I bought a house to live in that was tenanted. Notice was served after offer accepted but the tenant didn't leave after the two months. It then went through a court process to get them evicted as the tenant wanted a council house and needed to be evicted. I had to complete on my property before my buyers dropped out and went to live with family for 6 weeks whist I waited. Whole process took 5 and a half months.

@Goldpanther - what do you mean?

Your landlord has given you correct & legitimate notice, and you're just going to ignore it?

(Not sure your pot plants needed a special mention 🤷‍♀️😂)

There's also still a backlog at court due to the ban on evictions during COVID. It can take months to get a hearing date, and that's after serving a Notice and waiting the 2 months for it expire. 6 months minimum to get possession, prob more like 10-12 months in real life.

Ok wow, glad you’re so well informed about events in my own life? This did happen (and I did say to ‘the point of’ exchange if you care to read more carefully) it was completely on us for trying to buy what turned out to be an illegal HMO from an unscrupulous absentee landlord. We were undoubtedly ignorant/naïve to let it go so far but it is the truth and some landlords definitely try to pull these things when selling.

@Goldpanther you say 'Advice from my solicitor has been to stay at the same property as we have exchanged, but are due to complete at Christmas.' - let me clear this one up: your solicitor has advised you to do something illegal such a staying in place when served an eviction notice?

The thing is in the current market people are struggling to find alternative accommodation, which means that a lot more have no option but to stay put until they do (or face homelessness as per PP). It wasn't so bad a few years ago, so there is more risk now.

OP, I wouldn't spend any more money on this purchase without confirmation that notice has been correctly served. If they are selling, they may have to suck up the flat being empty for a bit rather than expecting you to suck up a potential delay of many months

what does 'getting to the point of exchange' actually means? Did you exchange? was the property not vacant?

It is your prerogative to tell your tale

and it is my right not to believe in it.

It is absolutely your right. On you crack.

There are three things that I think are deal breakers when buying a property - flood plains, damp and tenants!

Oh sorry @PiedATerrace , yeah i see what you mean. I thought we were close to exchange as the mortgage is sorted, searches and survey all done but if they're not pushing this issue maybe not.

If it came to the tenants refusing to leave and needing to be evicted i will just drop out of the sale, no way do i want all that hassle.

It is often advised by housing professionals to remain in the property and let the matter go to a possession order and if necessary a warrant for possession as this is either how long it can take for the tenant to secure alternative accommodation or for the council/other organisations to offer any assistance. It is something that landlords have to acknowledge and accept even if they have given correct legal notice.

This - and only this

Sorry quote fail - don’t exchange until the property is empty and you have personally checked it.

Do not exchange until the tenants have vacated and the property is checked. If the tenants are unhappy about the property being sold or struggle to find somewhere to live the situation could really drag on. You have to be prepared for the worst case scenario which is:

• landlords issue's Section 21 notice and all is absolutely correct with no legal basis to challenge

• 2 months notice comes and goes and tenants don't leave

• landlord files paperwork for court (can't remember what that is) and a date is set

• court order tenants to leave by x date (can't remember how long i to the future that is but weeks plural)

• tenants ignore order to leave

• back to court to instigate bailiffs

That is about the size of it. Happened to us with tenants a few years ago (pre covid). It was a very eye opening experience. I would like to think no decent solicitor would allow their client to exchange until the property is empty because they are much more likely to be aware of the worst case scenario than you are.

Of course it's always possible the landlord could issue 2 months notice to perfectly coordinate with completion so they have rent right up to exchange and the tenants leave on time but is that a chance you are happy to take? In our case it was a 4 bed family home with one tenant who was supposed to be an upstanding member of society not some C5 slum landlords case.

I think you need to find out exactly what the plan is with the tenants, e.g are they looking for places etc. Was there a pre-agreed timescale that everyone was working to?

Similar to others, I wouldn’t exchange until the tenants have left and you have the opportunity for a final viewing before parting with any cash.