Buying a property with tenant in situ

by Readers Question

3 years ago

Buying a property with tenant in situ

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Buying a property with tenant in situ

Just in the process of buying a property where the tenant wishes to stay on. Buying a property with tenant in situ

The current agent has less than favourable terms so am wondering how easy it is to get the tenants current deposit moved to a new deposit scheme of my choice.

With regards to the AST I am not so worried about, in theory the tenants need to move out for a night?!

Anyone any experience or advice?

Much appreciated.

Jim

Comments

Mark Alexander

3 years ago

Hi Jim

I've seen a lot of landlords come to grief when buying a property with a tenant in situ.

What referencing have you done on the tenant? Are you certain that you want this person in your property?

If you are confident that the tenant will be a good one then you need to protect yourself from any other mistakes made by the landlord. I'd suggest discussing this with your solicitor, e.g. what if the previous landlord didn't correctly protect the deposit and serve prescribed information within the statutory 30 day period? Perhaps it would be better that as a condition of sale the old tenancy is replaced with a new tenancy in your name?

Just my initial thoughts, I may have more.
.

james pearce

3 years ago

Thanks Mark,
there was no doubt about a new AST being set up. The property is currently managed by an agent I don't wish to use.
May use my regular one or do it myself this time.

Gary Nock

3 years ago

I have done two of these recently. If tenant will consent set up a complete new tenancy. AST, DPS, inventory etc. If not then it can get messy. Remember to serve Section 48 Notice on tenant or get solicitor to do it for you notifying them of new landlords interest. If you don't you cannot legally demand rent. Solicitor should make it a condition of purchase that on completion tenant agrees to new tenancy as above which means setting it all up beforehand and then signing tenancy docs just after completion or asap after.

Gary Nock

3 years ago

And forgot to add. Make sure the two solicitors work out the pro-rata rent due to each landlord at the date of completion and include it in the final settlement figure. If not you will never get it. If they say it can't be done tell them they can do it on service charges so why not rent. I have been trying to get £260 due to a landlord from a large chain of Wolverhampton letting agents who are appalling in how they have handled it. Landlord took possession in May and is still waiting. They will not even tell me if they paid it to the landlord or not so Small Claims is problematic as you don't know who to sue.

james pearce

3 years ago

Thanks for the advice Gary.
tenants have been served 2 months notice by current landlord which happens next thursday the day before scheduled completion.
The tenants have signed a new AST starting next friday so hopefully all ok.
Still a need for section 48?
Rgds....

Gary Nock

3 years ago

Hi James

Once new AST has been signed then as along as there is an address for service in the AST then there is no need for Section 48.

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