Buying a tenanted property without inventory
I’m buying one flat in London and looking to exchange in next few days. However, I have just heard that the vendor didn’t have an inventory done at the beginning of the tenancy. He has given section 21 notice to tenant for him to leave in about 6 weeks.
Is there anything you can think of or suggest to help ensure and protect my interest?
I did expect to claim damage he might have done to the property, overall it’s not in its best re-let-able condition, but now I have nothing to prove it.
Thanks
Mike
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Member Since January 2011 - Comments: 12211 - Articles: 1406
8:24 AM, 7th May 2015, About 11 years ago
Hi Mike
On this basis you will be buying ‘sold as seen’, you don’t stand a chance of making a successful claim against a tenant for damages without an inventory. This needs to be reflected in the purchase price. The only way you can minimise you risks of the property being damaged further between now and when the tenant vacates is to have an inventory done now.
On the basis the landlord doesn’t have an inventory, how confident are you that the tenants deposit was properly protected and how is you solicitor proposing to check/cover the risk of any claims if it wasn’t? Has your solicitor checked the tenancy agreement and the section 21 notice for validity?
.
Member Since October 2014 - Comments: 40
8:57 AM, 7th May 2015, About 11 years ago
I bought a property recently with tenants in-situ. We are in the same position regarding the inventory. The deposit was a bit of a pain to sort out too but mainly because the agents letting the property were unhappy I wasn’t prepared to continue the existing arrangement.
I have taken the view that I got the property cheaply and it all probably needs re-decorating anyway. In fact it needs re-jigging as the bathroom needs moving to create another bedroom.
As Mark says you won’t have a leg to stand on if the property is more of a mess than expected when the tenants move on.
All down to price I’d say and what your plans are when the existing tenants move on.
On paper my tenants moved out and back in again on a new tenancy agreement.
Member Since September 2016 - Comments: 2533 - Articles: 73
3:08 PM, 8th May 2015, About 11 years ago
I have no expertise on this, but wonder whether there could be a retention – I don’t know how much would cover it – £5,000? So you pay the final £5,000 when the tenants have gone, and do some kind of deal regarding the state the flat should be in, the furniture etc? Not sure if that’s workable…
Member Since May 2015 - Comments: 2
9:27 AM, 16th May 2015, About 11 years ago
My advice would be not to exchange until the tenant is actually out of the property. If you do exchange you may find that the condition of the flat is the least of your worries
The section 21 is no guarantee that the tenant will leave.
The local Council here in Sussex tell people not to make themselves homeless at the end of the notice period. If the tenant has not got another property to move in to you may find yourself in a situation where the tenant stays put and you end up having to go to Court to get possession.
We have had 2 cases recently where this has happened and it has taken months and cost the landlord a lot of money to sort out.
I am surprised that your Solicitor would allow you to exchange contracts in this situation.