First property, purchased at auction, feeling shafted – HELP!

by Readers Question

8:09 AM, 14th August 2014
About 4 years ago

First property, purchased at auction, feeling shafted – HELP!

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First property, purchased at auction, feeling shafted – HELP!

I have just bought the flat from auction which is due to complete in two days time. First property, purchased at auction, feeling shafted - HELP!

It was was advertised as subject to short hold tenancy with £1,500 rent but after contacting the agency managing the tenancy, they are saying there are tenants (2) in the flat with short hold tenancy paying £750 rent together.

The sellers solicitor says that as I have already signed the contract and paid a 10% deposit I must complete.

Apparently the council is paying rent for the tenants. I m not sure who’s right. I live in the North West and this flat is in London so I will be needing someone to manage it for me.

The incumbent agency said there is no deposit from tenant. I’m not sure where to go from here as I thought there was rental income of £1,500 but as it turned out only £750. My solicitor says I can not back out now.

Can someone advise me how to deal with this situation please?

I have concerns that the managing agency might be getting £750 for each tenant but lying to me.

How do I take control of the tenancy and find out the facts before starting eviction?

Can I directly contact council to find out the rent?

Thanks in advance for your time.

Mustaq



Comments

Mark Alexander

8:13 AM, 14th August 2014
About 4 years ago

Hi Mustaq

I suspect there maybe grounds to void the sale and recover your deposit and costs on the basis of property misdescription.

I have referred this thread to the barristers chambers I work for and asked the Chief Executive to request an appropriately qualified barrister to take a look at this thread and comment as a matter of urgency.
.

Percy Vere

10:10 AM, 14th August 2014
About 4 years ago

Well, I'm not a Barrister but I do have plenty of auction experience.

Yes, I would also be extremely hacked off if the property I had just bid on and won turned out to be mis-described to the extent that you are mentioning however, auctions are funny places with laws and rules goung back to King Alfred the Great and by that I mean it can be a nightmare trying to get out of an auction deal especially where property auctions are involved.
The argument you are certain to meet from the auction house and seller's solicitor is that you should have done your homework prior to bidding and you can bet somewhere in the auction small print is a disclaimer to the particulars not to be taken as accurate and that it is your responsibility to check everything is Kosha.

I actually know of a person who was prepared to and actually did refuse to complete the deal and lost his deposit on a property he bought at auction because he failed to note that the house was of non standard contruction and in need of total refurbing. It was his mistake and his hand went up because he thought it was going to be a cheap buy on the spur of the moment bid.

Caveat Emptor ! ( I could make Barrister status on that Latin phrase alone.......lol )

Mark Smith (Barrister-At-Law)

11:11 AM, 14th August 2014
About 4 years ago

Auction sales are harsh.

Once the hammer falls you are bound to complete. If you do not then you are liable for losses arising. The process is based on buyers doing due diligence, looking at the seller's legal pack to verify what covenants and leases bind the property etc.

However, there is scope for rescission of the contract or claiming of damages if there was material misrepresentation, and I would be happy to advise if you contact me via private message.

Percy Vere

11:38 AM, 14th August 2014
About 4 years ago

Having just read what Mark Smith has written wouldn't your own solicitor have had a look through the legal pack to ascertain whether there were going to be any problems with what you are about to buy? Or did you buy without a Solicitor viewing the legal pack and it is now after the purchase you are seeking legal advice from a Solicitor?

Don't get me wrong, if I thought for one moment I had been mislead in any way on the auction contractual details I would be leading from the front on this matter.

Newbie Tailor

11:56 AM, 14th August 2014
About 4 years ago

Thank you all for your comments.

My solicitor advices me the same, to go through the sell otherwise i will loose the deposit so I am going for it.
Percy, My mistake is that I did not consult my solicitor before the purchase.

Mark, I will send u a message if my solicitor cant get any losses.

Now I need to get the control of my flat and tenant now.
Any help will be appreciated.
Once again thank you for your time and attention.

Mark Alexander

12:20 PM, 14th August 2014
About 4 years ago

Reply to the comment left by "Newbie Tailor" at "14/08/2014 - 11:56":

What were the conditions of sale in regards to the existing letting agent?

Ordinarily the vendor would have to pay any exit charges associated with cancelling the contract with him. It would be highly unusual for the purchaser to be lumbered with the existing letting agent.

If you want vacant possession of the property then I recommend that you speak to Landlord Action - see >>> http://www.property118.com/tenant-eviction/39099/

When you have that, I suggest you speak to Letting Supermarket about letting and managing the property for you - see >>> http://www.property118.com/run-property-portfolio/64692/
.

Carol Thomas

14:41 PM, 14th August 2014
About 4 years ago

Reply to the comment left by "Newbie Tailor" at "14/08/2014 - 11:56":

Hiya Newbie Tailor. Oh my goodness, what a pickle you're in! If anyone can help you it's these guys. Also, I can highly recommend using Tony and co at lettingsupermarket. I recently put all my properties with them and they have been a godsend. The first thing they did for me was to remove a longstanding tenant with absolutely no fuss at all and the peace of mind they have given me is worth every penny of the small amount I pay them every month! I really hope all gets sorted out and you can progress with your new property. No one gets it right first time. NB read as much of this website as you can - you will learn loads. Best wishes, Carolp

Joe Bloggs

11:48 AM, 15th August 2014
About 4 years ago

PRESUMABLY THE AST WAS PART OF THE LEGAL PACK? WHAT RENT DID IT SAY? IF IT STATES £1500 PCM THEN SURELY THE PROPERTY MISDESCRIPTIONS ACT APPLIES?

Ian Manning

12:58 PM, 15th August 2014
About 4 years ago

Reply to CaZ to ref. her reply to 'Newbie Tailor:

Hi, CarolP,

Interested in your comments re. lettingssupermarket as my partner and I have a small portfolio of 4 houses, with 3 houses placed with a major national agency who have been, frankly, rubbish! One of the houses will need a new tenant by November and we are keen NOT to use the existing agency, so ' lettingssupermarket' sounds almost too good to be true.I tried phoning on their 0800 line just now and was unable to speak to anyone, just had to leave a message. Is this normal in your experience? Clearly, I understand that much of the contact will be online, but it's still important to be able to speak to someone directly.Anyway, your views would be greatly appreciated.
Ian
PS: Why is this site so chary of mentioning the name of the national LA?!! We are only assuming we are with the company everyone else seems to refer to!

Carol Thomas

19:43 PM, 15th August 2014
About 4 years ago

Reply to the comment left by "Ian Manning" at "15/08/2014 - 12:58":

They do not like to name names on this site. I think this is to ensure fairness and not cause upset etc to anyone. Lettingsupermarket have an application form on this site. Fill that in and I'm sure you will get a quick response, I know I did. They are great people to work with, I was very cautious at first but their professionalism put my fears to rest. They are incredibly proactive and are not in the least bit worried about doing Section 21 and all of the other nasty bits that we sometimes have to deal with. They have found two excellent tenants for me, out of four properties and I look forward to a very peaceful time now they have it all in hand. Highly recommend them, Tony is great. Hope this helps you Ian. Regards, Carol

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