Buying a property with a sitting tenant

when I bought 999 yrs leasehold it was in two flats so i bought both, no management charges and I control the repairs… I also bought a flat for one of my girls 999 yrs a more modern place, in a block of 4 . But I knew the management company , in fact I had done a lot of repairs on their other places, so I knew the directors and it is a very good firm . With modest charges… So each case must be judged on its own merits.

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I’ve taken on a place with tennant in situ and it has been a good experiance.

When buying the place, I treated her as if a new tennant. Interview, full credit check etc.

The risks the others are stating are no different to taking on a new tenancy. Your friend is due diligence.

In reality, long term trouble free tennants are gold dust, so as long as the rent being paid is at or just below market and they pass your checks, and they look after the place when you inspect it, it is probably less risky than getting a new unknown tennant.

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I have done it and will do it again. Mine was elderly lady in fact DSS tenant. Before we completed the purchase I sat down with her introduced myself and told her a new rental agreement will be issued and I needed a rent guarantor. Her daughter was ready to be one.

Completed the purchase. I have haven’t changed anything in the house. Rent comes in every month from day one.

Like what others have suggested , do your due diligence. Follow your instinct. Take risk. If you can get a guarantor , I think you would be fine

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Before buying any property, we have to do our own research about it. This is because it is lot important to know the actual worth of the property. Then we can take the help of estate agents who are experts in their own areas and they can help us to get better deals when something new comes up. There are some basic questions we must need to ask estate agents before buying are:
  1. Why is the owner selling?
  2. Have any major works been done on the property?
  3. How many people have owned the property previously?
  4. How soon can the owner move out?
  5. What are the neighbors like?