Hi,
We are buying a residential property to live in
Now that everything is ready for exchange we are told that the tenant has decided not to move out.
The tenancy agreement is already expired two months ago and she has stopped paying rent since.
Now we would like to know what happens if we complete the purchase of the property with the tenant still living in it?
I assume that in order for us to be able to evict the tenant we first need to sign a new tenancy agreement with her and give her a notice after a few months. Is that right?
And what if she rejects signing a new tenancy agreement with us? Can she?
Any advise would be really appreciated.
buying a place with an unhelpful tenant in it, that you really want to evict ,so that you can live in it ? You must really love the place !! this could take a year.
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The reason we want to buy this property is we got our mortgage offer for it before the interest rates going up two times. We probably wont be able to buy any other property because of new interest rates.
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got it .The existing tenant could cost you thousands tho . This is a risk most landlords would not take… The mortgage offer was assuming vacant possesion? Mortgage company will not be happy with tenant still there ?
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Dont even think about exchanging contracts until you get vacant possession. I would also insist the current owner gets professional help with the eviction or it could take a very long time. Even with help, it could still take the best part of a year as has already been said.
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If you exchange/complete with the tenant in, you are effectively buying a buy to let property and it is highly likely to be agaist the terms of a residential mortgage that will have been offered on the basis of you living in the property.
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Run very far away. You will be buying yourself a nightmare.
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I wouldn’t touch this with a very long barge pole.
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Absolutely no way. It’ll likely be all-in cheaper for you and far less of a headache to find another place with a more expensive mortgage (if possible).
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Your mortgage offer will expire before you get them out and then you’ll need to apply for a new mortgage at today’s rates. I’m sorry but its game over on this particular property. It’ll take about a year to get them out with correct notices and Court backlogs. You’ve been really badly advised by the selling estate agents. Find another property before your mortgage offer expires. And, never go for one with tenants in situ. Im so sorry. Xxx
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the fact she has stopped paying rent means she will not pay you either. . Its a lose, lose situation for you
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I know that everyone is warning us not to purchase the property with the tenant still living int it, but our situation is that if we don’t complete this purchase we most probably won’t be able to buy ever anything else as the interest rates have gone up three times since we got our mortgage offer and our offer will be expired in just 3 months.
We are not the youngest people and this is most probably our last chance to buy a house.
That’s why we still consider the option of buying this property even under current circumstances.
Now the question is:
whether we can complete the purchase and continue the eviction process that the current owner hast started or we need to restart the eviction process from the beginning.
Also we’d like to know how long maximum the eviction process could take for a single mother with 3 kids and on benefit.
If it takes maximum up to a year we are happy to go ahead with the purchase and cover the costs.
well no one can say you have not been warned.
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Are you not listening ? Please don’t do this… you will regret it.
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steve They will pay no attention to us
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Did you not listen to what I said: you cannot buy a buy to let property on a residential mortgage.
If you tell the lender what you are planning they are highly likely to withdraw the offer.
If you don’t tell the lender, it’s fraud.
Your solicitor should not allow you to complete on the house with tenants in situ anyway since they have to make sure that you comply with the lender’s terms and conditions.
Have a read at this…
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Yes, especially when he gets locked up for mortgage fraud when it all goes wrong and the lender calls in the mortgage and repossesses the property!
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Ive been in a similar pisition in the past and managed to switch to another property in order not to lose the mortgage offer.
If this doesnt work, you could try persuading the current owner to pay the tenants “relocation expenses”. They would need to tentatively enquire what sort of sum would be acceptable and provided it wasnt prohibitive, they could add an agreed proportion of it to the purchase price. Two or three thousand pounds to get them out may still be worthwhile for you.
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Ask the seller to deliver up the property vacant then you can wait without the un-nessary hassle.
If you take it on now you will have to start the eviction process yourselves. Section 21 may no longer apply so using other means means they have to be at fault. If its about non payment of rent then when you get to court they pay a penny towards rent and the case gets dismissed. You have to start over.
If you are senior in years do you want to spend your retirement paying for a house that you can’t live in plus your mortgage terms will change after 30days to a higher cost as you will have defaulted on the mortgage by having a tenant. The lender will change it to buy to let mortgage
Many of us landlords have suffered the effects of tenants bad behaviour and none of us want to repeat it.
It affects your mental health, your physical health and your finances.
I recently evicted a tenant and I am so happy, despite loss of income, its not always about the money. If you’re a landlord like me its about getting a return on your money better than banks whilst providing a home. The tenant has left and my son is living there and just paying his bills. So I have lost that rent but provides a home for my son on minimum wages, whilst he does a part time degree.
The house is still an investment without rent.
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Has your solicitor not offered any advice? And as someone mentioned what about the terms of your mortgage offer?
A single mother, with kids on benefits? The council will advise them to stay put until you pay for bailiffs to get them out. Who knows how long that will take.
You will also be paying the mortgage but paying to live elsewhere too?
Have you looked into government schemes such as the equity loan and shared ownership. This may be a more affordable alternative?
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