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.
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
17 comments on this article
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No such thing as the best Buy to Let product
Member Since September 2013 - Comments: 154 - Articles: 1
7:47 PM, 15th August 2014, About 12 years ago
Member Since January 2011 - Comments: 12255 - Articles: 1477
8:49 PM, 15th August 2014, About 12 years ago
Reply to the comment left by “Ian Manning” at “15/08/2014 – 12:58“:
Hi Ian
Hopefully the following linked page will explain why we don’t allow members to name and shame – see >>> https://www.property118.com/what-property118-is-not/
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Member Since August 2014 - Comments: 6
9:36 PM, 15th August 2014, About 12 years ago
I have completed the transaction yesterday and received some info from managing agent. Apparently they have served section 4b for rental increased from 750 to 1500 as there are 2 tenants in the flat. Tenants have not accepted the term yet. I m going to discuss more with agent to c wot can be done.
Thank you all for your help.
Member Since January 2011 - Comments: 12255 - Articles: 1477
9:45 PM, 15th August 2014, About 12 years ago
Reply to the comment left by “Newbie Tailor” at “15/08/2014 – 21:36“:
Do you mean a section 13?
I am totally confused! Upon whose instructions is this agent doing anything?
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Member Since August 2014 - Comments: 6
9:52 PM, 15th August 2014, About 12 years ago
Agent sent me d copy of section 4b they sent to tenant for rental increase to 1500 on 1st July on behalf of prev owner. Prev owner advertised d property even though tenant did not accept the increase.
Member Since July 2013 - Comments: 1268 - Articles: 1
12:49 PM, 16th August 2014, About 12 years ago
Unfortunately it sounds as though you did not exercise due diligence. It is ALWAYS the buyer’s responsibility to research a purchase whether bought at auction or by private treaty, hence the searches, surveys etc. I am surprised that Mark said there might be a case for misdescription. At auction you have to do all that without knowing that the property will be yours so if you’re outbid it could be a wasted cost, or you take a chance as you did.
Member Since August 2014 - Comments: 5
6:51 PM, 16th August 2014, About 12 years ago
Thanks, Mark, for the response about naming and shaming – I see where you are coming from. The ‘Allagents.co.uk’ site is very illuminating! Thanks for an excellent site.