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Original poster

Run a mile from buying property with sitting tenants?

30 replies

firsthome1 · 29/03/2023 20:29

We are sale agreed on a house with sitting tenants. Our solicitor has twice said that there may be a problem getting them out when their tenancy ends even though it is a fixed term tenancy. I guess he may have saw other buyers burned by this before. Sellers solicitors pushing us to sign contracts.. What would you do in our shoes?

OP posts:
SoCunningYouCanStickATailOnItAndCallItAFox · 29/03/2023 20:32

I sold my house to a buyer when it has sitting tenants. Their term was up, they departed on the appointed day, house exchanged and buyer moved in.
Communication was clear all round and tenants were normal decent people. So it was plain sailing, no bother.
Maybe try to meet the tenants and get a sense of their attitude to the house being sold? Our tenants weren't bothered, had plans to move on and were very cooperative with viewings etc (likewise we treated them very respectfully and kept them informed of progress etc).
So it wouldn't automatically be a run a mile situation for me.

SoCunningYouCanStickATailOnItAndCallItAFox · 29/03/2023 20:34

Your solicitor is doing the right thing letting you know that tenants can cause wrinkles. Technically he might be right, but people are very varied so you take that information and judge this case on it's own merits I'd say.

Greensleevevssnotnose · 29/03/2023 20:34

You can sign, but I wouldn't exchange till they move out. Ypthe seller could incentivise them to leave if it worries you.

Idontevenknow · 29/03/2023 20:35

I'd run a mile to be honest

Marblessolveeverything · 29/03/2023 20:35

Are you a cash buyer? In some jurisdictions mortgages can't be drawn down with sitting Tennant.

PlainJanePerfect · 29/03/2023 20:35

You may have to evict them with a section 21 if they can't find anywhere and don't want to make themselves intentionally homeless.

Also do you have proof they currently pay on time and aren't problem tenants?

Everything could be fine or you could be getting a headache.

Boomboomboomboom · 29/03/2023 20:37

You would be mad to exchange without the property being vacant if you intend to live in the property yourself.

Have you seen the tenancy agreement? The notices served? Have the procedural requirements (prescribed information) all been complied with? You could be taking on tenants who may be impossible to evict.

PuttingDownRoots · 29/03/2023 20:38

Not unless you want it as a BTL.

No exchange until after they've moved out.

tenbob · 29/03/2023 20:38

Are you buying it to move in to? Or will the tenancy extend beyond your completion date and you’re worried about what happens when you want them out?

if the former, are you in a chain?

Agree completion for after they are due to move out, and ask your solicitor to insert a clause on penalty/compensation if the house doesn’t have vacant possession?
Eg the vendor pays your costs for storage and temporary accommodation

Original poster
firsthome1 · 29/03/2023 20:49

@tenbob buying it to move in to.

We know we can't drawdown on mortgage until house is vacant. But is there any point in tying ourselves down to this property for months if there is a risk the tenants won't move out I am wondering.. There are other houses we are interested in in the same area.

OP posts:
Chattycatty · 29/03/2023 20:52

If there are other houses you like as much I'd pull out. It might be fine but what if its not and they won't leave. Too risky for me

earsup · 29/03/2023 20:56

A sitting tenant only means the house is rented and occupied, it doesn't imply a regulated tenant which is impossible almost to evict via court etc. talk to them and see if they have plans in place to move.

DrMarciaFieldstone · 29/03/2023 21:21

Run a mile. You only have to look at the advice given to people on here when they can’t find a new place… stay there until you’re evicted etc.

caringcarer · 29/03/2023 21:27

Gove is putting new legislation in parliament basically getting rid of Section 21, no fault eviction. How could you evict if they have paid rent and done nothing wrong. Buying a house with sitting tents is only workable for btl LL who need to tenant properly as anyway. I am a btl LL and am currently buying a property with sitting tents. They pay rent on time and when I looked around house it was looked after so I'm happy to let them stay there. They are paying decent rent. If I wanted to live there myself no way would I be buying it.

Teenangels · 29/03/2023 21:34

We purchased a house with a sitting tenant, to live in, we stated that we would not exchange until the tenants were out which was agreed.
The LL then extended their stay by 6 weeks, we said that we would not exchange until the tenants were out. He did not want to lose any income.

The LL agreed to this and the tenants left funnily enough it then took 6 weeks to complete. LL was so angry he had to wait for 6 weeks, I instructed by solicitor to wait 6 weeks to give them a taste of his medicine and had great joy in telling him this petty I know!!

EyesOnThePies · 29/03/2023 21:38

I wouldn’t pursue this unless I knew the tenants had a plan. I did offer on a house where the tenants were buying their own property and had started packing.

But well settled tenants? You could spend thousands on surveys, searches, your solicitor bills… and not be able to exchange for 8 months. You can’t exchange because then you are under contract to complete… which you can’t if the tenants don’t move.

Landlords need to have property actually ready to sell, IMO.

ProbablyDogNappersHunX · 29/03/2023 22:16

The fixed term tenancy bit is irrelevant, except that they can't issue a Section 21 notice for a date prior to the end of the fixed term.

The process, if the tenants aren't moving of their own volition, is as follows

  • landlord issues S21 notice with 2 months notice (England) or 6 months notice (Wales).
  • when the S21 notice expires, landlord makes an application to the civil courts for possession. This can take a number of weeks.
  • if the S21 notice wasn't correctly issued (e.g. deposit not protected) the issues must be rectified and the process starts from scratch with a new notice period.
  • if the S21 notice was correctly issued, the possession order will be granted, but the tenants still don't have to leave at this point.
  • at this point, the landlord must instruct court appointed bailiffs - at which point the tenants really do have to leave. Assume another multi-week delay before the bailiffs can get there.

If the tenants are seeking support from the council they will be instructed to stay until the bailiffs come - if they don't they'll be deemed intentionally homeless and the council will essentially wash their hands of them. Even if they are trying to move into another private rented house, demand is currently vastly outstripping supply for private rented homes and they may struggle to secure somewhere else.

AvocadoPlant · 29/03/2023 22:23

The courts are still dealing with the aftermath of covid and there are delays. Depending where you are in the country it can take several moths to get a court order then the same again for bailiffs.

If you’ve seen other properties you like I would honestly look at those unless the tenants are due to move out in the next few days. Do not exchange until the property is empty and locks have been changed.

Lcb123 · 29/03/2023 22:26

I wouldn’t even offer on a house with tenants…

FiveHundredDucksWentOutOneDay · 29/03/2023 22:27

We were torn between our house and a slightly cheaper one that needed more work, but had a bit more potential, at the end of our road. The one at the end of the road had a sitting tenant, with a correctly issued S21, and accepted a lower offer than here.

Long story short - we've lived here since early November '22, and the sitting tenant has been gone for about three weeks.

MidlandCatGirl · 30/03/2023 15:47

Walked away from a pretty amazing house that had 3 sitting tenants - all WFH as crypto-miners. Their lack of interest during the viewing and the fact they’d told the landlord they “wouldn’t move out for 3 months or until we’ve found somewhere” made me run away. It was a tough head/heart moment though.

Roaminginthegloaming · 30/03/2023 17:26

Run away! Landlords like this who market their property with tenants currently in residence want to have their cake and eat it and get income right up until the day of completion. The only exception is where the tenants have voluntarily chosen to move out - and I would check this directly with the tenants, not rely on the word of the LL or his agent.

Don’t forget that when you exchange on a property you have to insure it from that point. If the tenants didn’t want to leave it’s possible that the property could be trashed. Mortgage lenders will not release the funds until there is ‘vacant possession’ for good reason and this is why you need to listen to your solicitor.

The LL would have been wise to put the property on the market only after the tenants have moved out, unless he is only looking for purchasers in the BTL market.

Viviennemary · 30/03/2023 17:30

Why take on a problem. It might be ok but dkn't bank on it. Take the chance if it's your dream house and no other suitable properties.

Magnoliainbloom · 30/03/2023 18:07

I personally wouldn’t. However, I viewed a gorgeous flat with lovey tenants in. They kept the place immaculate, asked if wanted to see the balcony, kept out of my way. Seemed like thoroughly decent people who were facilitating the viewings. My preference would still be to buy vacant possession as I wouldn’t want any fuck ups near exchange.

MaireadMcSweeney · 30/03/2023 18:11

Don't do it. The seller shouldn't market until they have left. Too much risk.