Does the mortgage company know there is a sitting Tennant?
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Your solicitor would be in dereliction of duty if they exchanged knowing that the proprty is not vacant.
I suggest the problem is the sellers who should accept 20-30000 less or that they bribe the tenant out
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Even once the property is vacant please re check the condition before you exchange. Be prepared to work hard explaining to debt collectors etc that you and your possessions are not the existing tenants.
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Donât get involved this could turn into a nightmare , well the nightmare has already started , somethings in life are just not meant to be and this is one of them
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Agreed, however this is big bucks so what about bribing the tenant to go?
Speak to the vendor, and suggest he assists his tenants in finding another property to move into, at his expense, which will be far cheaper than discounting his sale price to sell as a buy-to-let, with a bad sitting tenant, and/or the cost of litigation to gain possession, along with the lost rent along the way.
If I was in his shoes I would cancel the tenants debt, utilise their deposit for a deposit on another rental property, and arrange a moving company, if he really wants to sell to you.
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Have you exchanged contracts?
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Not only will you likely be breaching the terms of your mortgage, meaning that the mortgage provider is within their rights to call in the mortgage, but you will be legally responsible for the maintenance and safety of the property. You will in effect be a landlord to the occupants. Whether they are paying rent or not you will be responsible for the gas safety inspection, EICR, ECT ECT ECT.
Being a landlord is hard work, most people either get some sort or training, or get an agent to manage the property.
I would be very surprised if it didnât end up costing you a lot more than you hope to save by proceeding.
Do you even have a clue of the responsibilities involved in being a landlord?
I hope you like prison food.
Blunt.
Yes.
You ask for advise, take it.
I donât think one person has said sure, go ahead, no problem.
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I never understand why anyone comes somewhere to ask for help from more experienced people then ignore the advice because it doesnât suits their narrative!! So the first thing I would do is speak to your lender as you cannot buy a rental property with a sitting tenant with a residential mortgage also that solicitor youâre paying should also tell you that he canât complete it for you as it would be fraud! I can guarantee that if you do ignore the advice then you will definitely gain a very secure residency but it will be at Her Majesties Pleasure. But even then theyâll evict you eventually.
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Question 11 on the Property Information form (TA6) refers to vacant possession and tenancies
What has the seller put in there?
As mentioned, Donât touch with a barge pole until the tenant has left and youâve physically checked that the house is empty. Donât rely on what anyone tells you
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I see this is a financially viable solution to a problem. If calculated properly the buyer could save a chunk on the cost of a similar property without a tenant, seems they have done their sums and ready to take a punt.
But their reasoning is that they donât want to lose their (presumably residential) mortgage. So they canât have a punt because they would be committing fraud to buy a buy to let on a residential mortgage.
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They have stated âWe are buying a residential property to live inâ, the question is if the tenant doesnât move out is it then a buy to let ??
I have used a residential loan for a buy to let, how is it fraud. Probably only because the lender isnât getting more interest, as long as they get paid they wont be bothered.
Because, if they are buying with a residential mortgage, their solicitor should make sure they have vacant possession.
If you want to rent out what used to be your home and itâs on a residential mortgage, you have to request permission from the lender.
A buy to let mortgage is subject to different consumer regulations then a residential. It is higher risk for the lender because, at the end of the day, itâs not your home, that is why they charge more.
And just because youâve done it doesnât make it less illegal! Itâs fraud, full stop!
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