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

by Readers Question

8:09 AM, 14th August 2014
About 6 years ago

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

Make Text Bigger
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


Share this article

Twitter Facebook LinkedIn

Comments

Carol Thomas

19:47 PM, 15th August 2014
About 6 years ago

Thought I would slightly correct one of my statements - the two tenants they have found were for two vacancies. They are managing all four of my properties. Hope I didn't confuse you. Also, Tony is very much a 'talking' person, there is some work to be done online, but not too much. Payments go into the bank almost immediately!

Mark Alexander

20:49 PM, 15th August 2014
About 6 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 >>> http://www.property118.com/what-property118-is-not/
.

Newbie Tailor

21:36 PM, 15th August 2014
About 6 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.

Mark Alexander

21:45 PM, 15th August 2014
About 6 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?
.

Newbie Tailor

21:52 PM, 15th August 2014
About 6 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.

Puzzler

12:49 PM, 16th August 2014
About 6 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.

Ian Manning

18:51 PM, 16th August 2014
About 6 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.

1 2

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Compliance Conundrum when tenant won't leave?

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More